Dual-channel Supply Chain Decision with Retailer′s Capital Constraint and Product Substitution

Abstract

Abstract:

In the case of symmetric demand information, using the Stackelberg game theory, a dual-channel supply chain decision model with retailer′s capital constraint and product substitution is researched. The results show that the retailer, the manufacturer and the supply chain′s total profit all decrease when the product substitution increases. Furthermore, increasing the service level is not always positive to the retailer′s profit. When the retailer is capital constraint, the manufacturer′s deferred payment contract can effectively coordinate the dual channel supply chain.

Key words: dual channel, product substitution, capital constraint, deferred payment, supply chain

GUO Jinsen1,2, ZHOU Yongwu2, LI Lu2. Dual-channel Supply Chain Decision with Retailer′s Capital Constraint and Product Substitution[J]. Industrial Engineering Journal .

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