Research on Cost Information Sharing and Channel Choice in a Dual-Channel Supply Chain
Joint Authors
Liu, Huihui
Sun, Shuguang
Lei, Ming
Leong, G. Keong
Deng, Honghui
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-05-29
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
Many studies examine information sharing in an uncertain demand environment in a supply chain.
However there is little literature on cost information sharing in a dual-channel structure consisting of a retail channel and a direct sales channel.
Assuming that the retail sale cost and direct sale cost are random variables with a general distribution, the paper investigates the retailer’s choice on cost information sharing in a Bertrand competition model.
Based on the equilibrium outcome of information sharing, the manufacturer’s channel choice is discussed in detail.
Our paper provides several interesting conclusions.
In both single- and dual-channel structures, the retailer has little motivation to share its private cost information which is verified to be valuable for the manufacturer.
When the cost correlation between the two channels increases, our analyses show that the manufacturer’s profit improves.
However, when channel choice is involved, the value of information could play a different role.
The paper finds that a dual-channel structure can benefit the manufacturer only when the cost correlation is sufficiently low.
In addition, if the cost correlation is weak, the cost fluctuation will bring out the advantage of a dual-channel structure and adding a new direct channel will help in risk pooling.
American Psychological Association (APA)
Liu, Huihui& Sun, Shuguang& Lei, Ming& Leong, G. Keong& Deng, Honghui. 2016. Research on Cost Information Sharing and Channel Choice in a Dual-Channel Supply Chain. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-12.
https://search.emarefa.net/detail/BIM-1112189
Modern Language Association (MLA)
Liu, Huihui…[et al.]. Research on Cost Information Sharing and Channel Choice in a Dual-Channel Supply Chain. Mathematical Problems in Engineering No. 2016 (2016), pp.1-12.
https://search.emarefa.net/detail/BIM-1112189
American Medical Association (AMA)
Liu, Huihui& Sun, Shuguang& Lei, Ming& Leong, G. Keong& Deng, Honghui. Research on Cost Information Sharing and Channel Choice in a Dual-Channel Supply Chain. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-12.
https://search.emarefa.net/detail/BIM-1112189
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112189