Abstract
This paper examines the influence that members’ preferred service investments have on their decision-making and profits in a dual-channel supply chain. We discuss changes in the supplier’s and retailer’s decision-making and optimal profits with reference to their different preferred service investment combination modes and their different leader-follower relationships. We also provide classified comparisons of the supplier’s and retailer’s optimal profits by referring to four types of product characteristics combination modes that are assessed across two channels. By providing classifications and comparisons, we put forward operational insights for the supplier and retailer who have direct implications for their optimal decisions and profits, including selling products with higher homogeneity between two channels, choosing the retailer as the leader of the supply chain, and confirming appropriate preference combination mode under a certain product characteristics. We analyze the influences of the preferred service investment levels as well as preference intensities of the supplier and retailer on their strategies and profits in their respective advantaged states and obtain some enlightenment about the cooperation strategies and relationship-building methods of the supplier and retailer in the actual process of their participation in the dual-channel supply chain operation.
Highlights
Dual-channel supply chain is a new kind of supply chain mode that is formed by the coexistence of the traditional distribution and the electronic direct channels
Ird, we propose advantage states, respectively, for the supplier and retailer by comparing their different preferred service investment combination modes and enumerating different product characteristics combination modes across two channels, which are based on the different leader-follower relationship modes between the supplier and retailer
When products are easier to sell in the distribution channel and have high heterogeneity between two channels, it is possible to obtain the supplier’s and retailer’s profits in different preferred service investment combination modes based on different leader-follower relationship modes, which are shown in Figures 6 and 7
Summary
Dual-channel supply chain is a new kind of supply chain mode that is formed by the coexistence of the traditional distribution and the electronic direct channels. E purpose of setting these stores is to “make more customers spend more money on Apple products more .” Such kind of service investment will influence the product sales and profit of the member in its own channel, which will certainly affect the decision-making and final profits of the other member in the other channel. Is paper will study the influence of preferred service investment on one or both members in the dual-channel supply chain and will focus in particular on their decisionmaking and profits under different conditions that include different preferred service investment combination modes, leader-follower relationship modes (between the supplier and retailer), and product characteristics combination modes (between two channels). E purpose of our study is to find some reasonable operation strategies and cooperation methods for the supplier and retailer in condition that both of them implement preferred service investment under different objective environments in the dual-channel supply chain.
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