Coordination contracts for a dual-channel supply chain under capital constraints

Zhang, Chong; Wang, Yaxian; Liu, Ying; Wang, Haiyan

doi:10.3934/jimo.2020031

Cited by 16 publications

(12 citation statements)

References 35 publications

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“…Thus, the retail price and direct selling price will not differ too much, the constancy will reduce the possibility of excessive price competition. Additionally, this assumption can alleviate the competition between the supply chain members under the dual-channel strategy to a certain extent, which verified in literature Xu et al (2018) and Zhang et al (2020). Assuming that this parameter is deterministic, the value is calculated from the common knowledge of the participants in the dual-channel supply chain.…”

Section: Notations and Assumptionsmentioning

confidence: 77%

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Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount

Zhang

Wang

2020

Int Trans Operational Res

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Green manufacturers are always faced with capital constraints in reality, while the previous literature has shown that internal financing is more effective than external financing. Given manufacturers' financial constraints, this paper studies and compares the optimal green decisions and profits under single-channel or dual-channel strategies with and without green investment. Therefore, the main contribution of the paper is determining the optimal channel strategy of supply chains under advance payment financing. The results indicate that the retailer's optimal channel strategy is to provide advance payment financing to the manufacturer who introduces online channel and produces green products, which are beneficial to the economic and environmental performance. Besides, green investment can facilitate a win-win scenario if the price elasticity of the demand for the retail channel is smaller than a threshold. Furthermore, green investment increases the retailer's acceptance of online channel. The results of our research can provide decision support for decision makers under the advance payment financing.

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Section: Notations and Assumptionsmentioning

confidence: 77%

“…(2018) and Zhang et al. (2020). Assuming that this parameter is deterministic, the value is calculated from the common knowledge of the participants in the dual‐channel supply chain.…”

Section: Notations and Assumptionsmentioning

confidence: 97%

Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount

Zhang

Wang

2020

Int Trans Operational Res

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“…Revenue-sharing contract. To encourage the TPL to exert more effort in the distribution process of green agriculture products, the e-tailer may consider sharing its revenue with the TPL (Wei et al [38]; Zhang et al [50]). This section introduces a revenue-sharing contract and investigates its effect on the supply chain.…”

Section: 2mentioning

confidence: 99%

Supply chain coordination considering e-tailer's promotion effort and logistics provider's service effort

Sun

Huang

2022

JIMO

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Promoting the sale of green agriculture products through online platforms has become the main focus of agricultural industries. In a supply chain consisting of an e-tailer and third-party logistics (TPL), both the promotion effort of the e-tailer and the logistics service effort of TPL can affect the demand. Considering that logistics service contracts may be provided by the e-tailer or TPL, this study defines two different timing sequences. Three types of contracts, i.e., fixed-price, revenue-sharing, and cost-sharing contracts, are used to coordinate the supply chain. The game models under different timing sequences and different contract scenarios are established and solved. The promotion effort and logistics service effort under different scenarios are compared theoretically and numerically. The results indicate that both the promotion effort and logistics service effort change with timing sequences and contract types. The timing sequences depending on the contract provider significantly affect the performance of the supply chain. The cost-sharing contract provided by the TPL can motivate the e-tailer to apply the largest effort, and vice versa. The cost-sharing contract provided by the e-tailer can achieve the largest demand that is optimal for both the e-tailer and supply chain. However, the optimal contract for the TPL is conditional.

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“…According to different model characteristics, Soni et al [26] classify inventory studies into three categories. Tang et al [27] and Zhang et al [28] focus on the optimal terms in trade-credit contact, and Xu et al [29] accommodate consumers' behavior into trade-credit provision. Peura et al [30] and Ren et al [31] explore pricing decisions of supply chain members under trade credit.…”

Section: Relevant Literaturementioning

confidence: 99%

“…A manufacturer practically adopts a uniform wholesale price when it deals with different retailers. Since the unit wholesale price of the product is the result of competition among multiple manufacturers in the market, and it infrequently changes relative to the retail price, in line with Hu et al [12], Zhang et al [28], Xu et al [29], Gupta [41], and Cai et al [5], we assume the wholesale price w is an exogenous parameter. All notations are summarized in Table 1.…”

Section: Dual-channel Supply Chain Without Trade-credit Servicementioning

confidence: 99%

Strategic Provision of Trade Credit in a Dual-Channel Supply Chain

Qin

et al. 2021

Mathematical Problems in Engineering

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This study focuses on a a dual-channel supply chain that consists of a capital-constrained brick-and-mortar retailer and a manufacturer, where a manufacturer can simultaneously sell products through a traditional retail channel and a direct online channel. Supplementary pricing strategy and competitive pricing strategy are simulated in our model, and we find that the former one is the better choice for the manufacturer when the retailer suffers capital constraints. In our analysis, the capital constraint on retailer could mitigate the price competition between two channels, and it may be beneficial to the manufacturer under certain conditions. Our findings show that the manufacturer should strategically provide trade credit to retailers rather than unconditionally provide it. We present two trade-credit strategies (trade credit with positive interest rate and trade credit with zero interest rate) and suggest that the manufacturer should choose an appropriate trade-credit strategy according to the initial capital of the retailer. To guide the manufacturer when and how to provide trade credit, we conduct several numerical simulations based on our results and further plot out a graph to direct the manufacturer to an appropriate strategy of trade credit.

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Coordination contracts for a dual-channel supply chain under capital constraints

Cited by 16 publications

References 35 publications

Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount

Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount

Supply chain coordination considering e-tailer's promotion effort and logistics provider's service effort

Strategic Provision of Trade Credit in a Dual-Channel Supply Chain

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