Abstract

This paper constructs a supply chain consisting of a manufacturer and a retailer. Considering channel integration and service cooperation, two dynamic Stackelberg game models are established: one without unit profit allocation M and the other one with unit profit allocation Mε. In two dynamic models, we analyze the influence of relevant parameters on the stability and complexity of the dynamic system and system profit by nonlinear system theory and numerical simulation. We find that the higher adjustment parameters can cause the system to lose stability, showing double period bifurcation or wave-shape chaos. The stable region becomes larger with increase in service value and value of unit profit sharing. Besides, when the system is in chaotic state, we find that the profit of the system will fluctuate or even decline sharply; however, keeping the parameters in a certain range is helpful in maintaining the system stability and is conducive to decision-makers to obtain steady profits. In order to control the chaos phenomenon, the state feedback method is employed to control the chaotic system well. This study provides some valuable significance to supply chain managers in channel integration and service cooperation.

Highlights

  • In recent years, the development of e-commerce has brought a strong impact on offline stores [1]

  • The retail mode of online order delivery and offline store purchase emerges as the times require, namely, channel integration

  • Based on the nonlinear dynamic theory, this paper mainly focuses on the following issues: What impact does the different service cooperation model have on manufacturers and retailers? What impact does service value and unit profit sharing have on the dynamic behavior of the system?

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Summary

Introduction

The development of e-commerce has brought a strong impact on offline stores [1]. Considering service value, Zhang and Wang [23] studied the dynamic pricing strategy of dual-channel supply chain under centralized and decentralized conditions. Based on the nonlinear dynamic theory, this paper mainly focuses on the following issues: What impact does the different service cooperation model have on manufacturers and retailers? (1) Based on service cooperation, the paper proposes two distribution modes of profit from channel integration, discusses the stability and complexity of the two modes, and provides a reference for decision makers of the integration channel (2) e paper reveals the impact of service value and value of unit profit sharing on the dynamic evolution of the game model and the profits of decision-makers (3) e paper applies nonlinear dynamic theory to the study of channel fusion and enriches the research in this field e rest of this paper is organized as follows.

Problem Description and Model Assumptions
Control of Complexity Dynamics
Conclusions
Proof of Proposition 1
Full Text
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