The study on price and lead time decisions in retailer-dominated dual-channel supply chain. Issue 3 (3rd April 2017)

• Record Type: Journal Article
• Authors: Li, Yi-Bin; Lin, Chun-Pei; Wu, Tung-Ju; Chen, Jin-Long
• Is Part Of: Journal of interdisciplinary mathematics. Volume 20:Issue 3(2017)
• Page Start: 805
• Page End: 819
• Publication Date: 2017-04-03
• Subjects: Dual-channel -- Supply chain -- Lead time -- Price -- Dominant firm; Mathematics -- Periodicals; Mathematics; Periodicals; 510.5
• DOI: 10.1080/09720502.2017.1358869
• Languages: English
• ISSNs: 0972-0502

Abstract

Abstract: Retailers are the dominant firm in the dual-channel supply chain composed of manufacturers and retailers. Based on the assumption of linear correlations between price and quoted delivery lead time decision and market demands, a typical dual-channel supply chain model is constructed, and the following conclusions are derived. (1) Under different-price strategies, retailers' online/offline channel optimal prices show linear relations with lead time and there are criticality conditions in positive/negative correlation changes. (2) Under same-price strategies, an analytic expression of end customer demanded quoted delivery lead time in the dual-channel supply chain system is proposed, and the value is uniquely confirmed by system parameters. (3) Manufacturer profits are the dependent decision variable in the retailer-dominated dual-channel supply chain system, but manufacturer profits are not affected by retailer decisions when online channel and offline channel reveal consistent quoted delivery lead time preference.