When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?

Matsui, Kenji

doi:10.1016/j.ejor.2016.08.048

Cited by 147 publications

(55 citation statements)

References 71 publications

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“…Moreover, an increase in the service effort level in the specific channel can increase the demand of this channel. Like many researchers (e.g., Li et al., 2016; Matsui, 2017; Qin et al., 2020), we utilized a specific linear demand function. Utilizing the assumption in Singh et al.…”

Section: Model Descriptionmentioning

confidence: 99%

Optimal pricing decisions for an omni‐channel supply chain with retail service

Jiang

Liu

Lim

2020

Int Trans Operational Res

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Motivated by the emergence of dominant physical stores utilizing a buy‐online‐and‐pickup‐in‐store (BOPS) channel, we examine the interaction of such a stronger retailer and a manufacturer's strategies on the pricing and service value. The dominant retailer provides an added service value to end consumers by the traditional channel and BOPS option, which has a positive influence on the market demand. The manufacturer makes the channel selection decision between a dual channel and an omni‐channel. We formulate a retailer Stackelberg game and characterize the equilibrium pricing and service solutions under centralized and decentralized cases. Our results indicate that the service value of a physical store strongly influences the players' pricing strategies. The sensitivity analysis reveals that the total revenue of the supply chain increases with the market scale expansion coefficient of the BOPS option. Furthermore, the result suggests that offering the BOPS channel is always an effective initiative to boost supply chain performance, especially in the centralized structure.

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Section: Model Descriptionmentioning

confidence: 99%

Optimal pricing decisions for an omni‐channel supply chain with retail service

Jiang

Liu

Lim

2020

Int Trans Operational Res

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“…Lei et al [41] studied the multi-channel supply chain structure composed of a manufacturer and multiple retailers, analyzed the influence of vertical information sharing and horizontal information sharing on the channel selection strategy of manufacturers. Matsui et al [42] studied the optimal product distribution strategy when two symmetrical manufacturers adopt a single retail channel, a single direct channel and a double channel.…”

Section: Literature Reviewmentioning

confidence: 99%

A Contract Coordination Model of Dual-Channel Delivery between UAVs and Couriers Considering the Uncertainty of Delivery for Last Mile

Chen

Song

et al. 2019

Discrete Dynamics in Nature and Society

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For the traditional last-kilometer delivery, commodities are sent from the distribution center to the distribution transfer station, which are then delivered by the couriers from the distribution transfer station to the consumers. This single distribution channel cannot prioritize services for consumers closer to the distribution center, resulting in a waste of distribution resources. To deal with the last-kilometer delivery problem, this paper attempts to build a dual-channel distribution system consisting of UAVs and couriers. And the impact of the market allocation proportion on the expected profit of the last mile service through the two different distribution channels is discussed and analyzed. It is proved that the improved revenue sharing contract can realize the coordination of the dual-channel distribution between UAVs and the couriers. The numerical examples verify the effectiveness of the model and contract coordination. According to the research, first, with the increase in the uncertainties of the delivery quantity, the profit of the UAV channel shows a downward trend, while the profit of the courier channel remains basically the same. This is because the labor cost of the courier channel is relatively stable. Second, with the increase in the market allocation proportion of the last-kilometer delivery, the optimal delivery quantity of the UAV channel and the optimal order quantity of the courier channel are both increasing, while the overall profit of the last-kilometer is first rising and then decreasing. Third, the expected profit of the UAV channel and the courier channel can achieve Pareto improvement through the improved revenue sharing contract.

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“…However, in the presence of the online channel, cross-price effects are considered. In the literature on the dual-channel supply chain, the conversion and holding costs of a retailer are sometimes assumed to be zero because of analytical tractability (Hua et al, 2010;Dan et al, 2012;Chen et al, 2012;Matsui, 2017). In the present study, we consider the unit operational costs of the retailers as h 1 and h 2 , respectively, because two different locations are considered.…”

Section: Mathematical Model and Analysismentioning

confidence: 99%