Open AccessDemand Model Development Considering Supply Chain Disruption
Author(s) -
Tigar Putri Adhiana,
Amanda Sofiana
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/982/1/012062
Subject(s) - supply chain , channel (broadcasting) , business , product (mathematics) , dual (grammatical number) , online and offline , supply and demand , industrial organization , computer science , marketing , microeconomics , telecommunications , economics , mathematics , art , geometry , literature , operating system
The concept of distributes and selling products through retailers (offline channels) and also online channels is called a dual-channel supply chain (DCSC). In DCSC, one manufacturer manages the online channel and distributes the product to one independent retailer. Disruptions are all activities that disrupt the supply chain activities so that the supply chain cannot operate normally. Another major aspect to be considered in DCSC is the customer shift in preferences because with adding an online channel, the online channel has several advantages. This paper’s objective is to investigate the effect of supply chain disruption on demand in the online and offline channels. The customer knows beforehand that there is a disruption in the supply chain before even try to purchase the product in DCSC, therefore it will affect the customer preferences that will also affect the channel demand. From a numerical example, it is shown that the retail channel is suffering more than the online channel. The greater the probability of disruption and the proportion of disruption, the demand on the offline channel will decrease.