Research on the manufacturers' channel selection strategy

Abstract

This paper studied the issue of the NDSC (network direct sales channel) for manufacturers with the retailer-led Stackelberg game in a supply chain with a manufacturer and a retailer, where the retailer not only has traditional sales channel, but also has network sales channel. Through the numerical analysis, following conclusions were obtained. if the NDSC is opened, the retailers' profit will decrease, and the manufacturers' profit will increase at a reasonable wholesale price. Furthermore, NDSC won't improve the efficiency of the supply chain system, and the contract of wholesale price discount and sales effort cost sharing also won't give a Pareto improvement for bilateral profits.