Quality differentiation in a dual-channel supply chain

Zhang, Zhe; Song, Huaming; Shi, Victor; Yang, Shilei

doi:10.1016/j.ejor.2020.09.003

Cited by 67 publications

(51 citation statements)

References 49 publications

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“…Over the last two deceased, various studies have been conducted in the realm of the electronic dual-channel supply chain. As an illustration, Zhang et al (2021) investigated a dual supply chain, including a manufacturer and a retailer. The manufacturer produces the commodities in two high and low qualities.…”

Section: Electronic Dual-channel Supply Chainmentioning

confidence: 99%

A sales strategy optimization model on online group buying in a fuzzy dual channel supply chain using a game theoretic approach

Heidarpoor

Ghazanfari

Jabalameli

et al. 2023

Preprint

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Different factors affect customers' decisions on the selection of a service. Two of the essential factors are the price and the level of service provided by a seller to customers. The seller's credibility is also among the influential factors in selecting and buying a service that is reinforced by advertisements (offline advertisement or sales through an online group buying platform) and the provided service level. Accordingly, this study develops a fuzzy mathematical model to simultaneously determine price, service level, and advertisement level in a dual channel supply chain during two current and future courses according to the cooperative game between the seller and the platform. All parameters of the problem are determined as fuzzy variables. The seller can sell her/his service through individual sales strategy (offline) or mixed strategy, selling her/his service through the platform (online) and offline channels. The aim is to determine the optimal strategy for the seller when deciding to join the group buying platform, which is compared with the individual strategy. By considering the structures of group buying platforms, different refunding policies and revenue sharing policies are developed under six scenarios for the centralized model . The optimal solutions of the problem are then defined using the game theory approach and fuzzy sets theory for each scenario. Ultimately, a numerical example is provided to indicate the effectiveness of theoretical results of models and developing management insights. Besides, performed sensitivity analyses in this article also provide the effect of the change in essential parameters on seller decisions.

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Section: Electronic Dual-channel Supply Chainmentioning

confidence: 99%

A sales strategy optimization model on online group buying in a fuzzy dual channel supply chain using a game theoretic approach

Heidarpoor

Ghazanfari

Jabalameli

et al. 2023

Preprint

View full text Add to dashboard Cite

show abstract

“…In the demand function of , ( ) is the set of all the members in {1, 2} that do not belong to j ( j ∈ {1, 2}), if j = 1, otherwise j = 2, ; a refers to the potential market demand, which also reflects the total market size, and it is much larger than other parameter to avoid cases with negative demand [ 33 , 38 ]; Q j refers to the order quantity of M j , which reflects the consumer demand for its products; q j refers to the quality level of M j products; P j ( ) represents the market price of the M j ( ) product; α (0 < α < 1) is the substitution coefficient or so-called cross elasticity coefficient in classical microeconomic literature [ 39 ], which characterizes the impacts of rival product’s price and quality on its own demand, and reflects the competition degree between the two products [ 34 , 38 ]. Thus, we have the related product demands in the different channels: …”

Section: Problem Descriptionmentioning

confidence: 99%

“…In PO mode, the unit production cost of the CM is composed of raw material cost f and amortized R&D cost m (i.e., R&D cost per unit product). Following the literature [ 34 , 40 – 42 ], we adopt a quadratic function of raw material cost to characterize the serious impact of improving unit product quality on cost input: , where c is the quality cost coefficient, which reflects the CM’s production technology. M 1 and M 2 purchase from the CM at w 1 and w 2 unit wholesale prices, respectively.…”

Section: Problem Descriptionmentioning

confidence: 99%

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Strategic interaction of original equipment manufacturers between outsourcing and purchasing in a quality-differentiated market

et al. 2022

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Economic globalization has swept the whole world. To focus on their main business, enterprises that are referred to as original equipment manufacturers (OEMs) outsource non-core production activities to contract manufacturers (CMs). By constructing a two-level supply chain consisting of two competing OEMs and one upstream CM, the strategic interaction of the OEMs between outsourcing and purchasing is studied. Specifically, the CM can offer custom- and predefined modes of original equipment manufacturing (namely, CO mode and PO mode, respectively). The former mode enables OEMs to determine product quality, while the latter only allows them to purchase from several quality configurations. The results show that, first, since the CO mode allows the adopter to lead the product design, whether to choose this mode depends on the required R&D cost. Interestingly, however, a lower R&D cost does not necessarily result in the adoption of the CO mode if the product quality difference is small under the PO mode. Second, the optimal purchasing strategy of an OEM is indifferent to the outsourcing mode (CO and PO) of its rival but significantly affected by the quality cost. However, compared to the PO mode, choosing the CO mode would cause the competitor to suffer more profit losses. Third, differing from the prior literature, this paper finds that when the downstream OEM can make quality decisions, although this may lead to profit loss of the contract manufacturer in some channels, it could benefit the CM overall.

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“…Considering the coordination of a reverse dual-channel supply chain, Feng et al (2017) [9] found that supply chain coordination could be achieved by two complementary contracts, a two-part pricing contract, and a revenue-sharing contract. [28] studied quality differentiation in a dual-channel supply chain and found that manufacturers should sell low-quality products directly. Liu et al (2022) [15] discussed the dual-channel supply chain with service quality.…”

Section: Introductionmentioning

confidence: 99%

Dual-channel supply chain coordination strategies considering electricity quality

Chen

Zheng

et al. 2023

JIMO

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<p style='text-indent:20px;'>The introduction of tradable electricity platforms in China has enriched the channels for consumers to purchase electricity and intensified the competition among channels. The quality of electricity is an essential factor affecting consumer purchasing behavior. This paper mainly focuses on the influence of the competition among channels on electricity quality.We construct a dual-channel electricity supply chain, in which electricity generators sell electricity directly to consumers or resell it through electricity retailers. We use the backward induction method of game theory to solve the equilibrium solutions in centralized, decentralized, and coordinated decisions. By analyzing and comparing the equilibrium solutions, we draw the following conclusions; (1) Electricity quality, electricity price, electricity demand, and profits increase with the sensitivity coefficient of electricity quality and price competition coefficient. (2) Electricity quality, electricity price, electricity demand, and profits decrease with the investment cost coefficient of quality improvement. (3) The increase in transmission and distribution costs reduces the electricity quality while increasing the electricity price through both channels. Furthermore, the increase leads to an increase in electricity demand and the profit of the electricity retailer through the resale channel. However, it reduces the electricity demand and the profit of the electricity generator through the direct sales channel. (4) A combined contract consisting of revenue sharing and quality improvement investment cost-sharing can lead to coordination.</p>

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Quality differentiation in a dual-channel supply chain

Cited by 67 publications

References 49 publications

A sales strategy optimization model on online group buying in a fuzzy dual channel supply chain using a game theoretic approach

A sales strategy optimization model on online group buying in a fuzzy dual channel supply chain using a game theoretic approach

Strategic interaction of original equipment manufacturers between outsourcing and purchasing in a quality-differentiated market

Dual-channel supply chain coordination strategies considering electricity quality

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