NDLI: Capacity allocation in a competitive multi-channel supply chain

Content Provider	Springer Nature Link
Author	Liu, Kaijun Zhang, Zigang
Copyright Year	2007
Abstract	This paper addresses the capacity allocation problem for a capacitated manufacturer who can distribute her product to the end customers through an independent retailer channel as well as through her direct channel. Demands of the channels are substitutable, which induces competition between them. We show that to avoid channel competition, it is possible for the manufacturer to deny the retailer of capacity. Specifically, if channel substitution rate is high, a retailer of low demand will never be allocated any capacity even when the available capacity is ample. While, if the channel substitution rate is low, capacity allocation strategy depends on the retailer’s demand and the available capacity. Many other interesting managerial insights are provided and illustrated with numerical examples.
Starting Page	450
Ending Page	468
Page Count	19
File Format	PDF
ISSN	10043756
Journal	Journal of Systems Science and Systems Engineering
Volume Number	16
Issue Number	4
e-ISSN	18619576
Language	English
Publisher	Systems Engineering Society of China
Publisher Date	2007-12-08
Publisher Place	Beijing
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	E-supply chain management capacity allocation demand substitution multi-channel supply chain Systems and Information Theory in Engineering Game Theory/Mathematical Methods Operations Research/Decision Theory
Content Type	Text
Resource Type	Article
Subject	Control and Systems Engineering Information Systems

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