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Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk
Joint Authors
Zhou, Yan-cong
Sun, Xiaochen
Feng, Jin
Wei, Jie
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-16, 16 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-03-21
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
Supply disruption may cause strong complaints of customers, which is a cost loss for the firms in the supply chain.
Obviously, if realizing that there is the disruption risk, the members in a supply chain will adjust their decisions.
For analyzing the influence, we consider a popular supply chain mode with dual channels, where one manufacturer has its direct sales channel and one traditional retailer channel.
The manufacturer may suffer a supply disruption so that all ordered products by the retailer or the direct retail channel will be lost, and the members in supply chain will bear the corresponding disruption penalty from the customers.
By considering four structures with different market power relations, the closed-form optimal price decisions of the four models are given.
We found that the disruption factor improves the sales prices for any member structure as compared to the supply chain without the disruption.
And the direct retail prices in the different modes are the same as each other, but the price of the traditional channel is influenced by the market share.
And the sorts of the sales prices under different structures are given.
We also conduct some extensive numerical analysis and compare the results under different structures.
We observe that the expected optimal profits of considering the external penalty are smaller than those of no external penalty, and we give a sort of the optimal expected profits.
And we also provide the effects of some parameters on the optimal decisions and the optimal expected profits.
American Psychological Association (APA)
Zhou, Yan-cong& Feng, Jin& Wei, Jie& Sun, Xiaochen. 2018. Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk. Discrete Dynamics in Nature and Society،Vol. 2018, no. 2018, pp.1-16.
https://search.emarefa.net/detail/BIM-1152743
Modern Language Association (MLA)
Zhou, Yan-cong…[et al.]. Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk. Discrete Dynamics in Nature and Society No. 2018 (2018), pp.1-16.
https://search.emarefa.net/detail/BIM-1152743
American Medical Association (AMA)
Zhou, Yan-cong& Feng, Jin& Wei, Jie& Sun, Xiaochen. Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk. Discrete Dynamics in Nature and Society. 2018. Vol. 2018, no. 2018, pp.1-16.
https://search.emarefa.net/detail/BIM-1152743
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1152743