Abstract
More and more suppliers in fresh food supply chain expand online channels using fresh food e-commerce platform, forming a dual-channel supply chain model. The competition of market resources will lead to channel conflict in the dual-channel fresh food supply chain. The level of service is one of the important reasons for the conflict in the fresh food supply chain. Service is an important factor influencing the shopping decision of consumers. This paper studies a dual-channel supply chain consisting of a fresh food supplier and a fresh food retailer. The supplier wholesale fresh food to the retailer while developing its own online channel. In this paper, the Stackelberg game model is used to solve the equilibrium state of service level between the supplier and the retailer in the dual-channel supply chain. Both the supplier and the retailer aim to maximize profits. The supplier is the game leader. It first decides the wholesale price and the service level of the online channel. The retailer is the follower. It makes decisions based on the supplier’s decisions. The study found that the supplier and the retailer can attract more customers by improving service level, thus increasing profits. Weighing the relationship between service level and operation cost is a major problem in operation.
Highlights
With the continuous upgrading of information technology, e-commerce brings challenges to the traditional retail industry, and brings this trend to the upstream of the supply chain
In the dual-channel supply chain of fresh food, channel conflict is always caused by the competition of market resources
Cai [6] analyzed the impact of a price discount contract and pricing scheme on the dual-channel supply chain and reported that the simple price discount contract can improve the performance of both the supplier and the retailer
Summary
With the continuous upgrading of information technology, e-commerce brings challenges to the traditional retail industry, and brings this trend to the upstream of the supply chain. Many fresh food supply chain suppliers have opened online sales channels through such fresh food e-commerce platform, forming an online and offline double-channel supply chain model. In the dual-channel supply chain of fresh food, channel conflict is always caused by the competition of market resources. Soleimani et al [15] suggested that production cost and demand disruptions are highly correlated, and they influence the pricing and production decisions. Suppliers and retailers can attract more customers and increase sales by improving service level. Since the same products are sold, suppliers and retailers compete for consumers in the potential fresh product market through the improvement of service level
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