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Pricing Analysis on a Dual-Channel Supply Chain When Delivery Lead Time is Introduced

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DOI: 10.23977/icemm2021027

Author(s)

Gan Wan, Jun Zhang

Corresponding Author

Jun Zhang

ABSTRACT

With the development of e-commerce, more and more consumers are shopping online, which has led several manufacturers to redesign their sales strategy and open online sales channel. Online and offline channels form the dual-channel supply chain. However, consumers have to wait before receiving the products they bought. The duration between time when a consumer places an order on the Internet and time when he receives what he bought is called the delivery lead time. It is an important index in channel choice of consumers, which is introduced into the operation of the dual-channel supply chain. A dual-channel supply chain consisting of one manufacturer and one retailer is studied in this paper, and the supply chain is considered as a manufacturer Stackelberg game model. The impact of the delivery lead time on the operation of the supply chain is analyzed in this paper. The two-part tariff contract is used to coordinate the supply chain when making the decentralized decision. At last, numerical examples are given to show the optimal decisions in the supply chain when the delivery lead time is different.

KEYWORDS

Delivery lead time, Dual-channel supply chain, Two-part tariff contract

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