The comparison and complex analysis on dual-channel supply chain under different channel power structures and uncertain demand

Abstract

In this paper, a dual-channel supply chain composed of one manufacturer and one retailer is discussed. The manufacturer sells its products to its customers, becoming the rival of the retailers. In this case, we consider two scenarios in which the manufacturer holds either asymmetric or symmetric channel power as the retailer. According to the changing demand, we develop the dynamic game models for the two scenarios and analyze the models' dynamic behavior. The corporations' profits and system stability are compared under these two scenarios. We find that the manufacturer's profit is greater with asymmetric channel power than that with symmetric channel power. For the retailer, it will get more profit if it holds a symmetric channel power compared with the manufacturer. The supply chain profit will increase as the internal competition increases. Besides, the system stability will be easier to maintain with asymmetric channel power and the market will be much easier to fall into chaos with symmetric channel power.

The Complexity Analysis in Dual‐Channel Supply Chain Based on Fairness Concern and Different Business Objectives

“…Some scholars studied the influence of channel structure on participants. For example, Ma and Xie [2] considered one manufacturer and one retailer in a dual-channel supply chain, the manufacturer holds either asymmetric or symmetric channel power compared to the retailer. The result found that the system stability should be easier to maintain with asymmetric channel power.…”

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

“…Ma and Si [14] established a continuous Bertrand duopoly game model with twostage delay to investigate the influence of delay and weight on the complex dynamic characteristics of the system. Ma and Xie [15] analyzed the comparison and complexity on a dual-channel supply chain under the different channel power structures and uncertain demand. Ma and Xie [16] discussed the impact of loss sensitivity on a mobile phone supply chain system stability based on the chaos theory.…”

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“…These findings show that the indicated parameters should be kept in a certain range; otherwise the systems will enter chaos through flip bifurcations. Ma and Xie [12] discussed a dual-channel supply chain and found that when firms hold asymmetric channel power, as the game leader, the manufacturer could get more profit than when they hold symmetric channel power. Hong et al [13] proposed a framework of promoting food information traceability for estimating costs and developing appropriate price strategies.…”