Abstract
With the intensive growth of internet use, the customers choose the online market as the right preference. Hence, manufacturers are attracted to launch an online channel that includes a retail channel. To maintain the versatile demand types of products, a retailer is to stock more than one product of the same category, and consequently, he has to purchase products from different manufacturers. This article formulates a dual-channel supply chain model with two manufacturers and a standard retailer, where the optimal online prices, retail prices, wholesale prices, and level of green improvements are decided under different types of decision making power strategies such as Centralized, joint manufacturers Stackelberg, separate Stackelberg, Nash games are investigated. The optimal results are derived and compared with the help of a numerical example. Moreover, a sensitivity analysis is performed to scrutinize the effect of some important parameters. It is found that the green level is higher in a double dual-channel model than in a single dual-channel model. Moreover, the own-channel price sensitivity parameters affect the profit functions of the members negatively. The manufacturers must control the cost-coefficients of greening to increase the green level of the manufacturing products.
Highlights
The present study considers two DC supply chain (SCN) with two manufacturer and a common retailer, and assumes both the manufacturer produce products with different green improvement (GI) levels
It is considered that both the manufacturer maintain a fixed ratio of online channels (OC) and retail channels (RC) so that online prices remain lesser than the retail price
The total profit (TP) of the SCN is obtained from the equation (4.4), and it depends on the retail prices and the GI levels (θ1 and θ2) of the P1 and P2
Summary
Sustainability is an essential aspect of today’s world because of the strong links between it and the importance of environmental issues, and most countries are working on various directions to develop sustainability [1, 13]. The present study considers two DC SCNs with two manufacturer and a common retailer, and assumes both the manufacturer produce products with different green improvement (GI) levels. The study examined how the greenness of products influences demand rates and players’ pricing decisions and the most profitable strategy for SCN members (See Fig. 1). Retailers are common to industries P and Q They can decide which GI level and what price to set for the products in order to maximize profits. This type of SCN model can be found in the electronics industry.
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