Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains

Matsui, Kenji

doi:10.1016/j.ejor.2015.07.004

Cited by 95 publications

(31 citation statements)

References 54 publications

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“…Huang et al [5,6], Cao [20] and Zhang et al [21] and Matsui [22]. For example, Huang et al [5,6] investigated pricing and production decisions in a dual-channel supply chain in centralized and decentralized settings for demand disruption and production cost disruption, respectively.…”

Section: Literature Reviewmentioning

confidence: 97%

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Dual-channel supply chain: A strategy to maximize profit

Batarfi

Zanoni

2016

Applied Mathematical Modelling

115

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The rapid pace of e-commerce development has resulted in several manufacturers selling their products online to stay competitive and increase accessibility to their products. This paper investigates the effect of adopting a dual-channel (comprised of a traditional retail channel and a direct online channel) on the performance of a two-level supply chain (manufacturer-retailer). Through this strategy, the manufacturer would like to offer customized products through a direct online channel (i.e. make-to-order), in addition to offering its standard product through the traditional retail channel (i.e. make-to-stock). The objective is to maximize the total profit of the system when this strategy is adopted. A linear demand function is used for both channels in which the demand depends on the selling prices (markup margin), the quoted delivery lead-time, and product differentiation. This investigation is compared to a benchmark scenario, where the supply chain is comprised of a single-channel strategy (retail channel only) where one type of product is offered; the standard product. In both strategies, the paper analyzes the change in the profit, markup margin and the inventory decisions that result from adopting the dual-channel strategy. The findings of this paper demonstrate that adding a customized-product online channel would increase the profit of the centralized supply chain system. However, it created a conflict due to competition between the retail and online channels. A numerical example and sensitivity analysis have been used to demonstrate this effect and to draw specific managerial insights

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Section: Literature Reviewmentioning

confidence: 97%

“…Matsui [22], on the other hand, investigated the optimal product distribution for a two symmetric manufacturers facing price competition and using dual-channel supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Dual-channel supply chain: A strategy to maximize profit

Batarfi

Zanoni

2016

Applied Mathematical Modelling

115

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“…Huang and Swaminathan [9] find that a new competing channel sometimes benefits the incumbent firm because of the new consumers brought by the new channel and the cost advantage of the incumbent; in this case, a mixed firm might have a higher pricing strategy. Matsui [10] investigates the pricing competition between two symmetric manufacturers and compares their different channel policies. In addition, some literature has considered inventory decisions.…”

Section: Introductionmentioning

confidence: 99%

Coordination Contracts in a Dual-Channel Supply Chain with a Risk-Averse Retailer

et al. 2017

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Dual channels have become popular strategies for manufacturers due to the development of innovative selling platforms. Examples in practice also show that the lack of relationship management, such as cooperation and sharing, may cause an unsustainable supply chain performance. However, previous studies on coordination of dual-channel supply chains always focus on the contribution to profits and neglect the sustainability of relationship development between channel members. In this paper, we study the coordination of a dual-channel supply chain including a direct channel and a traditional channel. Under the fact that sustainable economy, instead of profit maximization, is the more appropriate objective in channel members' decision making, we consider the retailer's risk exposure and assume the risk degree is also a factor that impacts decision making. We assume the manufacturer is risk-neutral and the retailer is risk-averse, and measure the risk attitude with Conditional Value-at-Risk (CVaR) approach. Two traditional contracts widely used in single-channel supply chains, i.e., revenue-sharing contract and buy-back contract, are analyzed first. Although some researchers have discussed that traditional contracts cannot coordinate the dual-channel supply chain, our results show that traditional contracts can still come into play with restrictions on the risk-averse degree. Then we propose a risk-sharing contract which could distribute profits between two channel members and coordinate the system under varied risk-averse degrees with a fixed risk-sharing degree. Finally, we analyze the sensitivity of different parameters to illustrate the stable coordinating outcomes of this contract, and prove its generalization with more powerful channel members. The results provide important managerial insights.

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“…One stream has focused on the competition and coordination that arise between sales channels (Hua and Li, 2008;Lu and Liu, 2015;Lin, 2016;Matsui, 2016;Wang et al, 2016;Chen and Chen, 2017). Another stream has studied the challenging logistics and processes of fulfilling online orders once they have been placed (De Koster, 2003;Tetteh and Xu, 2014).…”

Section: Introductionmentioning

confidence: 99%

Dual-channel warehouse and inventory management with stochastic demand

Alawneh

Zhang

2018

Transportation Research Part E: Logistics and Transportation Re

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This study examines the inventory policy for the emerging dual-channel warehouse, which has a unique structure where the warehouse is divided into two areas: one for fulfilling online orders and the other for storing products and fulfilling offline orders. A multi-item inventory model was developed considering the warehouse capacity constraint, demand, and lead time uncertainty.Solution methods are provided for both uniform and normal distributions. Adopting the proposed inventory policy for a dual warehouse is cost effective and adds flexibility to the warehouse and supply chain. The study also offers managerial insights on some critical issues faced by companies operating in a dual-channel context.

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Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains

Abstract: Please cite this article as: Kenji Matsui , Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains

Cited by 95 publications

References 54 publications

Dual-channel supply chain: A strategy to maximize profit

Dual-channel supply chain: A strategy to maximize profit

Coordination Contracts in a Dual-Channel Supply Chain with a Risk-Averse Retailer

Dual-channel warehouse and inventory management with stochastic demand

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