Joint optimization of pricing and inventory control for dual-channel problem under stochastic demand

Huang, Guoxuan; Ding, Qingqing; Dong, Chaohua; Pan, Zhicong

doi:10.1007/s10479-018-2863-6

Cited by 33 publications

(7 citation statements)

References 33 publications

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“…represents the coefficient of price sensitivity for one's own product; y ¼ ½y L ; y U �ð0 � y < 1Þ represents the coefficient of price sensitivity for competitor channels, which reflects the degree of substitutability between products sold through two channels. Assuming b>θ, meaning that the coefficient of price sensitivity for one's own product is greater than the coefficient of price sensitivity for competitor channels [33]. ρ (0 < ρ < 1) represents the proportion of demand that flows into traditional offline consumption channels, while the remaining (1−ρ) flows into online direct sales.…”

Section: Model Constructionmentioning

confidence: 99%

Impact of uncertain demand and channel power on dual channel supply chain decisions

Zhao,

Zhao

2024

PLoS ONE

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The paper aims to conduct an analysis of pricing strategies in a dual channel supply chain under external uncertainty, utilizing Interval numbers theory and Game theory as the theoretical basis. The focus is on maximizing the expected profits of manufacturers and retailers. Four models are considered: centralized decision-making, manufacturer’s Stackelberg, retailer’s Stackelberg strategy, and vertical Nash model, with the decision variable being the product price. By solving the game model, the paper compares the optimal decisions under the four models and conducts sensitivity analysis to reflect the influence of key parameters and analyze their relationships. The ultimate goal is to optimize profits under various circumstances by adjusting market potential and price parameters to determine the best price level. The findings suggest that decision-maker’s risk indicators have a greater impact on decision results when market demand is less sensitive to price, and that the size of the market has a negative correlation with the impact of decision-maker’s risk indicators on decision results.

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Section: Model Constructionmentioning

confidence: 99%

Impact of uncertain demand and channel power on dual channel supply chain decisions

Zhao,

Zhao

2024

PLoS ONE

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“…On the one hand, some scholars have focused their attention on dualchannel supply chain under market demand uncertainty. Huang et al (2021) studied the optimal decision-making and pricing problems of a dual-channel supply chain composed of a manufacturer and a retailer under random demand condition using Stackelberg game model. Zhou et al (2019) studied the price decision problems of a dual-channel supply chain consisting of a dominant manufacturer and a retailer subject to asymmetric information under demand uncertainty.…”

Section: The Dual-channel Supply Chain In An Uncertain Environmentmentioning

confidence: 99%

Dual‐channel supply chain coordination under risk aversion and fairness concerns

Xue

Wang

2023

Manage Decis Econ

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This paper studies coordination in a dual‐channel supply chain consisting of a risk‐averse retailer with fairness concerns and a risk‐neutral and fairness‐neutral manufacturer where the market demand and manufacturer yield are both uncertain. Based on CVaR criterion and fairness concern theory, a dual‐channel supply chain decision‐making model for the risk‐averse retailer with fairness concerns is constructed, and the optimal decision under centralized and decentralized dual‐channel supply chains is discussed. A new joint contract formed from revenue‐sharing and buyback contracts is presented to coordinate the dual‐channel supply chain under yield and demand uncertainty conditions that realizes Pareto improvement. The influences of yield and demand uncertainties, the risk aversion coefficient, and the fairness concern coefficient on retailer‘s order quantity, retailer's expected utility function value, manufacturer's planned yield, and manufacturer's expected utility function value are analyzed through numerical examples. The feasible range of Pareto improvement under the joint contract is also discussed.

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“…According to the survey, the offline channel is still dominant in the consumer market; thus, we suppose (Lei et al 2014 ; Xu et al 2021 ). Because the price from the supplier (retailer) has a larger influence on demand than other channels, the substitution degree meets , which is referred to as the dominant impact of own price on demand (Maglaras and Meissner 2006 ; Huang et al 2018 ). However, when encroachment does not occur, we get , and , respectively.…”

Section: Problem Description and Assumptionsmentioning

confidence: 99%

Credit financing and channel encroachment: analysis of distribution choice in a dual-channel supply chain

Luo

Shi

et al. 2022

Oper Res Int J

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Supply chain finance plays a significant role in alleviating capital shortage, which optimizes supply chain performance. In this paper, we discuss the interaction of credit financing and channel encroachment in a dual-channel supply chain structure consisting of a supplier and a retailer. Under the Stackelberg structure, we observe the interaction between credit financing and channel encroachment is heavily dependent on the substitution degree, potential online market, and production cost. Intuitively, the supplier is more likely to choose trade credit financing, except in the case where both the potential online market, substitution degree, and production cost are small; under these conditions, bank credit financing may be an equilibrium strategy. As long as the production cost is below a certain threshold, the supplier will choose the trade credit financing strategy.

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Joint optimization of pricing and inventory control for dual-channel problem under stochastic demand

Cited by 33 publications

References 33 publications

Impact of uncertain demand and channel power on dual channel supply chain decisions

Impact of uncertain demand and channel power on dual channel supply chain decisions

Dual‐channel supply chain coordination under risk aversion and fairness concerns

Credit financing and channel encroachment: analysis of distribution choice in a dual-channel supply chain

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