Impact of supply chain power and drop-shipping on a manufacturer’s optimal distribution channel strategy

Yu, Dennis; Cheong, Tae Su; Sun, Daewon

doi:10.1016/j.ejor.2016.11.025

Cited by 88 publications

(28 citation statements)

References 23 publications

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“…Cao et al [32] investigate the wholesale contract design problem in a dual-channel supply chain where the retailer's cost is private information. Yu et al [33] study the impact of supply chain power structure in terms of market power and retail channel dominance on a manufacturer's optimal distribution channel strategy. Matsui [14] studies the optimal wholesale and retail prices set in a multichannel supply chain which comprises a manufacturer and two retailers.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Decisions of a Supply Chain with Multichannel Retailer under Fairness Concerns

Zhen

Shi

Tsai

et al. 2019

Mathematical Problems in Engineering

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With the rapid development of the Internet, many traditional retailers have built their online channels. The fairness concern may play an important role in a dual-channel supply chain with a multichannel retailer. This paper establishes a Stackelberg game model in which a manufacturer produces and sells products through direct online channel and a retailer sells directly to consumers through online and offline channels. The manufacturer’s fairness concern (advantageous inequity) and the retailer’s fairness concern (disadvantageous inequity) are considered. Four scenarios are investigated: no fairness concern (NF), the retailer fairness concern (RF), the manufacturer fairness concern (MF), and both the manufacturer and the retailer fairness concern (MRF). The theoretical analysis shows that if the manufacturer’s advantageous inequity concern is low, the profit of the whole supply chain in the MRF scenario is the greatest. Otherwise, the supply chain profit in the NF or RF scenario is the greatest. That is, the manufacturer’s and the retailer’s fairness concern may increase the profit of the supply chain. This study also finds that the manufacturer’s advantageous inequity concern can increase the social welfare. The retailer should not concern about fairness if the manufacturer has high fairness concern. Besides, this paper shows that the manufacturer’s selling price cannot be affected by the fairness concern. Adjusting the wholesale price is the only thing that the manufacturer can do to reduce disadvantageous or advantageous inequity. In the RF scenario, the role of the retailer’s disadvantageous inequity concern is to reallocate the supply chain profit. Our findings provide some managerial insights on the pricing decision when the multichannel retailer and the manufacturer consider the fairness.

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Section: Literature Reviewmentioning

confidence: 99%

Pricing Decisions of a Supply Chain with Multichannel Retailer under Fairness Concerns

Zhen

Shi

Tsai

et al. 2019

Mathematical Problems in Engineering

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“…Penjualan online retail diperkirakan akan terus tumbuh dari 7% atas penjualan retail secara keseluruhan pada tahun 2011, dan menjadi 9% pada tahun 2016 [10]. Dalam model drop-shipping internet retailing, supplier akan memegang persediaan dan juga akan melaksanakan layanan distribusi fisik atas nama drop-shipper [11].…”

Section: Pendahuluanunclassified

Integrated Supply Chain Contract Model With Drop-Shipper Players

Ibrahim¹

2018

JTI

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In this paper, we developed model integrated supply chain model with drop-shipper players. The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.

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“…Zhao [35] studied the decision-making of lateral inventory transfer under the O2O environment, and pointed out the differences between a traditional dual channel supply chain and an O2O supply chain. Yu [36] studied the optimal distribution channel strategy of e-retailers and traditional retailers considering a drop-shipping model and power structure. Ji [37] studied the carbon emissions and promotion issues in the O2O dual-channel model under different power structures.…”

Section: Introductionmentioning

confidence: 99%

Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain

Wan

Kou

et al. 2020

Sustainability

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Due to the popularization of the concept of “new retailing”, we study a new commercial model named O2O (online-to-offline), which is a good combination model of a direct channel and a traditional retail channel. We analyze an O2O supply chain in which manufacturers are responsible for making green products and selling them through both online and offline channels. The retailer is responsible for all online and offline channels’ orders, and the manufacturer gives the retailer a fixed fee. We construct a mathematical function model and analyze the greenness and pricing strategies of centralized and decentralized settings through the retailer Stackelberg game model. Due to the effects of the double marginalization of supply chain members, we adopt a simple contract to coordinate the green supply chain. The paper’s contributions are that we obtain pricing and greening strategies by taking the cooperation of offline channels and online channels into consideration under the O2O green supply chain environment.

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Impact of supply chain power and drop-shipping on a manufacturer’s optimal distribution channel strategy

Cited by 88 publications

References 23 publications

Pricing Decisions of a Supply Chain with Multichannel Retailer under Fairness Concerns

Pricing Decisions of a Supply Chain with Multichannel Retailer under Fairness Concerns

Integrated Supply Chain Contract Model With Drop-Shipper Players

Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain

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