NDLI: A Supply Chain Model with a Dual Distribution Channel Based on Consumer's Behavior Diversity in the E-market

Content Provider	IEEE Xplore Digital Library
Author	Shen Chenglin Zhang Xinxin
Copyright Year	2009
Abstract	This paper considered a dual channel supply chain in which a manufacturer sells to a retailer as well as to consumers directly. All consumers in the market are divided into two types: time sensitive consumers (T-consumer) and price sensitive consumers (P-consumer), according to their consume preference, and each can select either the retail channel or the direct channel based on the price and the delivery lead time. The manufacturer decides the price of the direct channel and the retail decides the retail price. We develop conditions under which the manufacturer and the retailer share the market is equilibrium. Then the demand analysis as well as the two pricing regimes of the manufacturer that maximize the profits of the entire supply chain is developed. We show that the proportion of the T-consumer in the market plays important role in determining both the existence of dual channels in equilibrium and the pricing strategies of the manufacturers. Finally, we prove the condition under which the manufacturer, as well as the entire supply chain system will gain profits from adding the direct channel.
Starting Page	491
Ending Page	494
File Size	348420
Page Count	4
File Format	PDF
ISBN	9780769536613
DOI	10.1109/ECBI.2009.113
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2009-06-06
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	supply chain Supply chains Pulp manufacturing Nash equilibrium E-commerce Electronic commerce nash equilibrium consumer's behavior dual-channel Consumer behavior Pricing Marketing and sales Internet Virtual manufacturing Pharmaceuticals
Content Type	Text
Resource Type	Article

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