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Optimisation strategy of online dual-channel supply chain under differentiated products

Author

Listed:
  • Jie Xu
  • Xiru Yang
  • Angus Xiao
  • Lei Chen

Abstract

In this paper, differentiated products are its background. When manufacturers direct sales channels and retail channels are both electronic channels, this paper studies manufacturers and retailers pricing strategy about new products and inventory respectively. Taking into account the actual situation, this paper considers the three main factors that affect the utility of consumers, namely, the degree of channel preference, product discount coefficient, service sensitivity to the profit of manufacturers and online retailers, using consumer utility and game theory to build online dual-channel supply chain model, studying the optimal decision of the supply chain when considering the optimal profitability of the supply chain and the different scenarios of profit and inventory sales. Finally, the reliability of the model is verified by an example. The research of this paper can not only enrich the theoretical research of online dual-channel, but also can provide reference for the implementation of online double-channel enterprises.

Suggested Citation

  • Jie Xu & Xiru Yang & Angus Xiao & Lei Chen, 2018. "Optimisation strategy of online dual-channel supply chain under differentiated products," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 32(4/5), pages 450-469.
  • Handle: RePEc:ids:ijmtma:v:32:y:2018:i:4/5:p:450-469
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    Cited by:

    1. Syed Asif Raza, 2020. "Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization," Sustainability, MDPI, vol. 12(22), pages 1-42, November.

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