Joint pricing, services and quality decisions in a dual-channel supply chain

• DOI: 10.1051/ro/2019024
• Publication Date: 2019-02-26T09:08:11Z
• Authors: Jiumei Chen; Wen Zhang; Zhiying Liu
• Keywords: Stackelberg competition; Direct Selling

With the rapid development of Internet, many manufacturers nowadays are increasingly adopting a dual-channel to sell their products, i.e. , traditional retail channel and online direct channel. In this paper, we focus on service, manufacturer’s service quality effort, present an analytical framework examine optimal decisions in supply chain between manufacturer retailer. Considering efficacy different structures, centralized decentralized models established. By using backwards induction two-stage optimization technique Stackelberg game, corresponding equilibrium solutions obtained. Our analysis shows that degree customer loyalty strongly influences retailer’s services strategies chain, but not model. results also point out compared model, for any given selling price, ratio profit margins one unit channels determines strategy; will raise level put less effort improvement Finally, numerical examples contrasting view disparate interests within can actually realize improving outcomes.