Pricing and production decisions in dual-channel supply chains with demand disruptions

Huang, Song; Yang, Chao; Xi, Zhang

doi:10.1016/j.cie.2011.08.017

Cited by 202 publications

(144 citation statements)

References 20 publications

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“…These assumptions are the same as those of Huang et al [21]. The handling cost factor is denoted as 1 u , and the shortage cost factor is 2 u .…”

Section: Decision With Demand Disruptionmentioning

confidence: 99%

“…Similar to the study of Huang et al [21], the market demands of both traditional and direct sale channels are assumed to be the linear function of price.…”

Section: Dual-channel Supply Chain In the Centralized Decision-makingmentioning

confidence: 99%

“…Only few studies have focused on dual-channel supply chain. Only Huang et al [21] analyzed optimal pricing and production decision in demand disruption of a dual-channel supply chain using the centralized decision-making model and the supplier-dominated decentralized decision-making model.…”

Section: Introductionmentioning

confidence: 99%

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Decision on risk-averse dual-channel supply chain under demand disruption

Yan

Jin

Liu

et al. 2018

Communications in Nonlinear Science and Numerical Simulation

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Abstract:We studied dual-channel supply chains using centralized and decentralized decision-making models. We also conducted a comparative analysis of the decisions before and after demand disruption. The study shows that the amount of change in decision-making is a linear function of the amount of demand disruption, and it is independent of the risk-averse coefficient. The optimal sales volume decision of the disturbing supply chain is related to market share and demand disruption in the decentralized decision-making model.The optimal decision is only influenced by demand disruption in the centralized decision-making model. The stability of the sales volume of the two models is related to market share and demand disruption. The optimal system production of the two models shows robustness, but their stable internals are different.

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“…These assumptions are the same as those of Huang et al [21]. The handling cost factor is denoted as 1 u , and the shortage cost factor is 2 u .…”

Section: Decision With Demand Disruptionmentioning

confidence: 99%

“…Similar to the study of Huang et al [21], the market demands of both traditional and direct sale channels are assumed to be the linear function of price.…”

Section: Dual-channel Supply Chain In the Centralized Decision-makingmentioning

confidence: 99%

See 1 more Smart Citation

Decision on risk-averse dual-channel supply chain under demand disruption

Yan

Jin

Liu

et al. 2018

Communications in Nonlinear Science and Numerical Simulation

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“…For analytical simplicity, following Arya et al (Chen, Wang and Jiang, 2015) For model simplicity, we assume that the demands in the two channels are linear in self-price and cross-price elasticity. This assumption is very common in operations management literature (Raju & Abhik, 2000;Yue & Liu, 2006;Kurata, Yao & Liu, 2007;Huang & Swaminathan, 2009;Hua et al, 2010;Huang et al, 2012;Huang et al, 2013;Chen et al, 2015). We further assume that the self-price elasticity and the cross-price elasticity are symmetric Chen et al, 2015).…”

Section: Model Setupmentioning

confidence: 99%

“…Dan, Xu and Liu (2012) study the pricing and retail service decisions in a dual-channel supply chain. Huang, Yang and Zhang (2012) and Huang, Yang and Liu (2013) study the pricing and production decisions in a dual-channel supply chain when the supply chain experiences demand disruption and production cost disruption, respectively. Zhang, Xiong and Xiong (2015) study the coordination issue when a dual-channel supply chain experiences demand disruption or production cost disruption.…”

Section: Introductionmentioning

confidence: 99%

Online channel operation mode: Game theoretical analysis from the supply chain power structure

Huang¹,

Chen

2015

JIEM

Self Cite

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Abstract:Purpose: Dual-channels have been widely used in practice, and the pricing decisions and the online channel operation mode choice have been the core problems in dual-channel supply chain management. This paper focuses on the online channel operation mode choice from the supply chain power structures based on game theoretical analysis.Design/methodology/approach: This paper utilizes three kinds of game theoretical models to analyze the impact of supply chain power structures on the optimal pricing and online channel operation mode choice. Findings:Results derived in this paper indicate that when the self-price elasticity is large, the power structures have no direct impact on the decisions. However, when the self-price elasticity is small and customers' preference for the online channel is low, then in the MS market, it is better for the retailer to operate the online channel, while in the RS market or in the VN market, it is better for the manufacturer to operate the online channel. Research limitations/implications:In this paper, we do not consider stochastic demand and asymmetric information, which may not well suit the reality.Originality/value: This paper provides a different perspective to analyze the impact of supply chain power structures on the pricing decisions and online channel operation mode choice. The comparison of these two online channel operation modes in this paper is also a unique point.-1602-Journal of Industrial Engineering and Management -http://dx

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The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

Raju,

T M,

Kumar

2024

Manage Decis Econ

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Crisis cartel refers to the collaboration between organisations during unprecedented conditions to counter the effect of disruption during an economic crisis. Despite its prevalence, scholarly attention to this phenomenon remains scant. Employing a dual‐channel framework involving manufacturers, online retailers (ORs) and traditional brick‐and‐mortar retailers (BMRs), the authors scrutinised the efficacy of crisis cartels in mitigating the impact of negative demand disruptions. Three distinct game theoretic frameworks were applied to model the interactive dynamics between the supply chain partners, namely, the horizontal Nash game, the Stackelberg game and the collusion game. It was observed that, during disruption under crisis cartels, the optimal price and profit of both the downstream channel partners increased, whereas the optimal order quantity decreased. Manufacturers and consumers are worse off in terms of profit and consumer surplus, respectively, during the crisis cartel engagement between BMR and OR. Nonetheless, a crisis cartel emerged as a potential solution to address negative demand disruptions. In evaluating post‐disruption cartels, the study finds the necessity of regulating crisis cartels. The findings offer valuable insights for policymakers, market regulators and practitioners, suggesting the need for strategic regulatory adjustments to effectively manage disruptions through the prudent utilisation of crisis cartel as a proactive management tool. The study expands existing theory by providing novel insights into the strategic interactions and dynamics within collaborative responses to demand disruptions, thus offering a pioneering approach to crisis management research.

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Pricing and production decisions in dual-channel supply chains with demand disruptions

Cited by 202 publications

References 20 publications

Decision on risk-averse dual-channel supply chain under demand disruption

Decision on risk-averse dual-channel supply chain under demand disruption

Online channel operation mode: Game theoretical analysis from the supply chain power structure

The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

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