“…Ahn et al [15] discuss about the pricing decisions of a dual-channel supply chain under the condition of traditional channel and direct channel operated in spatially separated markets. Cai et al [16] show that the simple price discount contract can effectively improve both the supplier's and the retailer's performance based on evaluating the impact of a price discount contract and pricing scheme on the dual-channel supply chain competition. Yao et al [17] build a dual channel supply chain model and discuss how the retailer to use prices and services to attract customers.…”
Abstract. The amazing boom of Internet and logistics industry prompts more and more enterprises to sell commodity through multiple channels. Such market conditions make the participants of multiple hybrid channel supply chain compete each other in traditional and direct channel at the same time. This paper builds a two-echelon supply chain model with a single manufacturer and a single retailer who both can choose different channel or channel combination for their own sales, then, discusses the price competition and calculates the equilibrium price under different sales channel selection combinations. Our analysis shows that no matter the manufacturer and retailer choose same or different channel price to compete, the equilibrium price does not necessarily exist the equilibrium price in the multiple hybrid channel supply chain and wholesale price change is not always able to coordinate supply chain completely. We also present the sufficient and necessary conditions for the existence of equilibrium price and coordination wholesale price.
IntroductionWith the rapid development of information technology, human way of life and work has been changed completely. Using Internet, consumers can search, compare and get plenty of information about the goods they want to buy conveniently and economically without restrictions of time, space, weather, etc. On the other hand, the improvement in the efficiency of merchandise delivery provided by the third-party logistics enterprises such as Federal Express and UPS makes merchants have the ability to deliver their products to customers quickly but not costly. The combination of traditional business model with information technology and logistics industry promotes the emergence and development of e-commerce and makes it no longer be a novelty.The shortening of the length and the reduction of the intermediate links number of supply chain caused by online shopping reduce the price of products and benefit the customers. Meanwhile direct sale online makes enterprises more close to their customers and can obtain more accurate information for production operations management. Sale and purchasing through network became more and more popular and changed both enterprises' sales model and consumers' consumption patterns significantly. When electronic channel has become a critical selling and buying channel, manufacturers who sold only with the help of traditional retailers began to sell products to end customers directly via Internet. Such as IBM, Hewlett-Packard, Nike, Pioneer Electronics, Mattel, Estee Lauder and Cisco Systems, many prominent manufacturers had adopted primarily direct marketing techniques to sell their
“…Ahn et al [15] discuss about the pricing decisions of a dual-channel supply chain under the condition of traditional channel and direct channel operated in spatially separated markets. Cai et al [16] show that the simple price discount contract can effectively improve both the supplier's and the retailer's performance based on evaluating the impact of a price discount contract and pricing scheme on the dual-channel supply chain competition. Yao et al [17] build a dual channel supply chain model and discuss how the retailer to use prices and services to attract customers.…”
Abstract. The amazing boom of Internet and logistics industry prompts more and more enterprises to sell commodity through multiple channels. Such market conditions make the participants of multiple hybrid channel supply chain compete each other in traditional and direct channel at the same time. This paper builds a two-echelon supply chain model with a single manufacturer and a single retailer who both can choose different channel or channel combination for their own sales, then, discusses the price competition and calculates the equilibrium price under different sales channel selection combinations. Our analysis shows that no matter the manufacturer and retailer choose same or different channel price to compete, the equilibrium price does not necessarily exist the equilibrium price in the multiple hybrid channel supply chain and wholesale price change is not always able to coordinate supply chain completely. We also present the sufficient and necessary conditions for the existence of equilibrium price and coordination wholesale price.
IntroductionWith the rapid development of information technology, human way of life and work has been changed completely. Using Internet, consumers can search, compare and get plenty of information about the goods they want to buy conveniently and economically without restrictions of time, space, weather, etc. On the other hand, the improvement in the efficiency of merchandise delivery provided by the third-party logistics enterprises such as Federal Express and UPS makes merchants have the ability to deliver their products to customers quickly but not costly. The combination of traditional business model with information technology and logistics industry promotes the emergence and development of e-commerce and makes it no longer be a novelty.The shortening of the length and the reduction of the intermediate links number of supply chain caused by online shopping reduce the price of products and benefit the customers. Meanwhile direct sale online makes enterprises more close to their customers and can obtain more accurate information for production operations management. Sale and purchasing through network became more and more popular and changed both enterprises' sales model and consumers' consumption patterns significantly. When electronic channel has become a critical selling and buying channel, manufacturers who sold only with the help of traditional retailers began to sell products to end customers directly via Internet. Such as IBM, Hewlett-Packard, Nike, Pioneer Electronics, Mattel, Estee Lauder and Cisco Systems, many prominent manufacturers had adopted primarily direct marketing techniques to sell their
“…They conclude that the marginal costs affect the Nash equilibrium result of the dual-channel supply chain. Nash game is also used by Cai et al(2009) to address the effectiveness of price discount contracts in different scenarios and compared with some other games: supplier Stackelberg, retailer Stackelberg. They show that the price discount contracts outperform that of the non-contract scenarios.…”
This paper discusses how a manufacturer and its retailers interact with each other to optimize their product marketing strategies, platform product configuration and inventory policies in a VMI
“…In this case, dual channel supply chain with both the online channel and offline channel is generated, which may lead to serious channel conflicts. The previous researches have indicated that the buy-back strategy [2], price compensation strategy [3], price-discount strategy [4], two parts and promotion level compensation strategy [5] can effectively alleviate channel conflict and conductive for achieving supply chain coordination. But the important role of service level is neglected.…”
The co-principal-anent models of manufacturer and retailer are built under the complete information and asymmetric information. In addition, the optimal profit sharing and the optimal fixed payment ratio are analyzed and compared in both situations. A motivate mechanism about service effort provided by the manufacturer towards the retailer in a dual-channel supply chain is studied. It implies that the profit of manufacturer under asymmetric information decreases dramatically contrasted to complete information and the retailer can gain profits by providing lower services, thus refusing deficiency of the supply chain.
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