Abstract
This research employed a development model investigating offline and online demand functions in the dual-channel supply chain (DCSC) structure by Widodo He explains that the DCSC structure has a problem determining each channel’s prices and proposes a mathematical model approach between offline channels and online channels. The critical parameter is the relative ratio of customer acceptance on the online and the offline channels. Besides using the relative ratio of customer acceptance on the online and the offline channels, this research employed an additional variable, namely the elasticity of demand for quality and discount rate. Adding a new variable to the DCSC structure increases profit systems. This study aimed to investigate the best prices for offline and online channels to get optimal profits. Therefore, optimal prices were discovered for consumers and companies with the two sales structures running simultaneously. The model development profits showe that profits in both offline and online channels increased. In the current condition, the offline channels tended to dominate. However, the analysis of this study showed that online sales could control the sales structures. The overall profits of IDR 2,532,106.00 were obtained by setting a price of IDR 87,296.00 on offline channels and Rp. 89,300.00 on the online channel.
Highlights
Prices play a crucial role in the macroeconomy, consumers, and companies
The profit prices of the experimental results were obtained from the dual-channel supply chain formula
The total profit on the experimental results is IDR2,532,106.00, while the profit on the existing price is IDR1,949,500.00. These findings show that the experimental results are more significant than the existing prices
Summary
Prices play a crucial role in the macroeconomy, consumers, and companies. Dai et al [1] report that pricing strategies have important and popular topics in dual-channel supply chains. The price of a product affects the level of wages, rents, interests, profits, and production factors, such as labor, capital, and entrepreneurship. The price can be one of the factors that consumers consider before buying a product. It is one of the marketing mixes that bring income for companies. Research by Wang et al [2] summarizes that pricing fixing is determined by the agents’ attitude involved in the pricing
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