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A dual-channel supply chain considering different preferences of delivery cost bearing in presence of a third-party platform

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  • Soumita Kundu

Abstract

This paper explores the operation decisions of a dual-channel supply coordination consisting of a manufacturer, a retailer and a third-party platform (3PP). In reality, in the presence of the third-party platform manufacturers can opt for various options of bearing delivery cost: 1) the manufacturer will bear the delivery cost; 2) the 3PP will bear the delivery cost; 3) the customer will bear the delivery cost. Here, we address all these situations. Furthermore, the delivery time, to which the online customers are more sensitive, is taken into consideration by customers' channel choice and the manufacturer or the third party makes efforts to reduce delivery time. Finally, sensitivity analysis with graphical illustrations has been performed to investigate whether it is profitable for the manufacturer to pay product delivery cost in the online channel, if not, under what condition the third-party platform or the online customer will bear this cost.

Suggested Citation

  • Soumita Kundu, 2026. "A dual-channel supply chain considering different preferences of delivery cost bearing in presence of a third-party platform," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 56(3), pages 290-313.
    • Handle: RePEc:ids:ijores:v:56:y:2026:i:3:p:290-313
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