Price and Service Competition of Dual-Channel Supply Chain with Consumer Returns
Author(s) -
Lili Ren,
Yong He,
Houfei Song
Publication year - 2014
Publication title -
discrete dynamics in nature and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.264
H-Index - 39
eISSN - 1607-887X
pISSN - 1026-0226
DOI - 10.1155/2014/565603
Subject(s) - dual (grammatical number) , supply chain , channel (broadcasting) , competition (biology) , business , industrial organization , service (business) , microeconomics , computer science , marketing , economics , telecommunications , art , ecology , literature , biology
Products returned by consumers are common in the retail industry and result in additional costs to both the manufacturer and the retailer. This paper proposes dual-channel supply chain models involving consumer returns policies. Also, the price and service competition between retail channel and direct channel is considered in the models. According to the models, we analyze the optimal decisions in both centralized and decentralized scenarios. Then we design a new contract, coordinate the dual-channel supply chain, and enable both the retailer and the manufacturer to be a win-win
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