Industrial Engineering Journal ›› 2019, Vol. 22 ›› Issue (1): 27-35.doi: 10.3969/j.issn.1007-7375.2019.01.004

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A Research on Pricing Decision and Coordination of Dual-channel with Demand Disruptions under Market Segmentation

JING Youguo, XIONG Siqin, QIN Kaida   

  1. Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093, China
  • Received:2018-06-08 Online:2019-02-28 Published:2019-02-26

Abstract: Aiming at a double-channel supply chain made up of a manufacturer with an independent segment market and a retailer with a traditional channel, the pricing decision and coordination problems when facing the demand disruption are researched. Under the premise of no disturbance of market demand, a model of dual channel supply chain under market segmentation is established by applying dynamic game. For the centralized supply chain, how the dual-channel supply chain is priced and coordinated when the market demand is disrupted in four situations is examined and discussed by solving the Karush-Kuhn-Tucker (KKT) conditions of optimal profit under market segmentation, and then comparing it with the optimal decision without disturbance. For the decentralized supply chain, conditions are derived which the revenue sharing contract should meet when the supply chain is re-coordinated. The results of the example analysis show that when the value of the revenue sharing contract parameter is within the specified interval, the total profit of the supply chain can be increased by about 4.5%, and the Pareto improvement is realized.

Key words: double-channel, market segmentation, demand disruption, revenue sharing contract, pricing strategy

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