Research on decision-making and cordination of dual-channel supply chain based on service effect

Abstract

This paper studies the pricing and service effect of a product in a dual-channel supply chain with one manufacturer and one retailer. A single-channel, retailer's dual-channels and manufacturer's dual-channels supply chain models are established, respectively. The decision problems of optimal pricing and service under different channels are analyzed. The results indicate that the retailer's offline channel service level will be improved when it also has an online channel, while the retailer's offline channel service level will be reduced when the manufacturer creates an online channel, if the competitiveness between the online and offline channel is the same, under the condition of low service sensitivity. Besides, the offline retail channel service level will be reduced whether the retailer or the manufacturer create an online channel, under the condition of high service sensitivity. Finally, we coordinate the two dual-channel models with quantity discount contract.