Analytical insights into coordination and competition in dual-channel supply chains: A multi-factor dependent demand perspective

The evolving sales landscape, driven by rapid advancements in information technology and the widespread adoption of the internet, has significantly altered the dynamics of manufacturer-retailer relationships. In response to evolving consumer preferences and intensified competition, dual-channel supply chains, encompassing both traditional and online retail channels, have emerged as a strategic solution. However, despite extensive research on various aspects of dual-channel supply chain systems, a significant research gap persists, particularly in the analytical investigation of competition and coordination under multi-factor dependent demand—a critical aspect of real-world practice. This study addresses this important research gap by conducting a thorough analytical examination of the intricate interplay among pricing strategies, home delivery services, sales services, and warranty decisions within dual-channel supply chains. The study employs a triad of decision-making models - decentralized, centralized, and coordination - to optimize critical decision factors and proposes the optimal closed-form solutions for the decentralized and centralized models, as well as the desirable range of contract parameters that yield mutual benefits for the manufacturer and retailer within the coordination model. Through rigorous analytical analysis and numerical evaluations, the findings illuminate the dynamics of coordination and competition within dual-channel supply chains operating under multi-factor dependent demand. This research contributes actionable managerial insights, enabling dual-channel supply chain players to make informed analytics-based decisions by taking into account the impacts of various factors on market demand.