Coordination Mechanism of Dual-Channel Supply Chains Considering Retailer Innovation Inputs

Abstract

In response to the online channels established by manufacturers, physical retailers are starting to offer innovative services, which will intensify conflicts between manufacturers and retailers. Considering that the conflict will affect the operation efficiency and sustainable development of the supply chain, the coordination mechanism of a dual-channel supply chain has been established. In this study, we construct the Stackelberg game model based on consumer utility theory to analyze the complex mechanism of retailers’ innovation input level affecting supply chain operation and design the double coordination mechanism. The results show that: (1) an optimal combination of wholesale prices, retail prices and innovation input levels can optimize the operational efficiency of the supply chain, (2) Noncooperation among channel members affects the retailer’s product pricing, decreases the market share of the physical channel and increases the market demand of manufacturers, (3) The dual coordination mechanism can alleviate channel conflicts, which can improve the operational efficiency of the supply chain. This study provides several insights on the theory of organizational coordination and sustainable development in conflicts of dual-channel supply chains.

Horizontal and vertical demand forecast information sharing in a distributive dual‐channel supply chain considering the manufacturer's product quality improvement

“…Literature may be categorized into two types based on channel structure. The first channel structure is that the manufacturer establishes self-owned direct sales channels (Chen et al, 2017;Chiang et al, 2003;He et al, 2018;Yang et al, 2021;Zhang et al, 2021;Zhu et al, 2020). Ji et al (2017) investigate the carbon emission and channel selection decisions of supply chain members under the cap-and-trade mechanism and find that the introduction of an online channel is beneficial if consumers' sensitivity to low-carbon products is sufficiently high.…”

“…Literature may be categorized into two types based on channel structure. The first channel structure is that the manufacturer establishes self‐owned direct sales channels (Chen et al, 2017; Chiang et al, 2003; He et al, 2018; Yang et al, 2021; Zhang et al, 2021; Zhu et al, 2020).…”

A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand

“…Abad [53] also optimized the product's selling price along with the size of the order of a news vendor problem. To keep the selling price reasonable for the customer, a quantity discount policy was successfully implemented by Alfares and Ghaithan [54], where demand depends on selling price and holding cost depends on time. Every deteriorating product had an expiration date, and the selling price of that product depends on the life cycle of the product (Wu et al [55]).…”

Three-echelon apparel supply chain coordination with triple bottom line approach

“…Dey and Giri (2021) analyzed closed-loop sustainable supply chain under different game structures. Yang et al (2021) explored the coordination mechanism of dual supply chain considering retailer innovation efforts. This paper contributes to extant literature by shedding new light on the role of suppliers and manufacturers in a three-echelon sustainable supply chain.…”