Title: Pricing and Service Decisions of a Supply Chain with Dual-channel Retailer
Abstract: This paper studies a supply chain with one manufacturer and one dual-channel retailer. We consider two pricing strategies combined with providing service: consistent pricing strategy and in-consistent pricing strategy. We develop a Stackelberg game model to study the pricing strategy and obtain important observations by comparing equilibrium solutions in two strategies: (i) the retailer's profit under consistent pricing strategy is less than that under in-consistent pricing strategy, (ii) the service cost factor can invert the effect of pricing strategy on the service level, the retail prices, and the manufacturer's profit.
Publication Year: 2013
Publication Date: 2013-08-16
Language: en
Type: article
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