Open AccessA Three-Echelon Dual-Channel Supply Chain Model with Learning Effect Under the Return Policy
Author(s) -
Sujata Saha
Publication year - 2021
Publication title -
jurnal teknik industri
Language(s) - English
Resource type - Journals
eISSN - 2527-4112
pISSN - 1978-1431
DOI - 10.22219/jtiumm.vol22.no2.155-170
Subject(s) - supply chain , dual (grammatical number) , profit (economics) , imperfect , learning effect , business , industrial organization , channel (broadcasting) , production (economics) , marketing , computer science , microeconomics , economics , telecommunications , art , linguistics , philosophy , literature
In today's competitive and technologically developed era, many retailers have adopted an e-channel to increase sales, in addition to the existing traditional retail channel. Although many researchers studied this issue, there is hardly any research that comprehensively considers the learning-effect and return-policy. Therefore, this research aimed to develop an imperfect production dual-channel supply chain model consisting of a supplier, a manufacturer, and a retailer. The manufacturer also has a refurbishment unit adjacent to its production hub, where it reworks all the defectives. The main objective is to maximize the supply chain profit by considering factors, such as inspection error, return policy, and learning-effect of the employees. Finally, this model is analyzed with the Leader-follower relationship strategy and an integrated approach. The research found that the integrated approach is profitable for the entire supply chain, while commodity prices can be minimized. Sensitivity analysis is also presented in this study.