Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions

Chunhua Tang, Honglin Yang, Erbao Cao*, Kin Keung Lai

*Corresponding author for this work

    Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

    45 Citations (Scopus)

    Abstract

    The impacts of simultaneous disruption of demand and cost on pricing, production and coordination of a dual-channel supply chain with one manufacturer and one retailer are examined. First, coordination of the dual-channel supply chain without disruption is proposed, by using a revenue sharing contract. Furthermore, the effects of simultaneous disruption of demand and cost on pricing, production and profit are examined from the perspective of partners and the whole supply chain. Optimal prices and quantum of production in the event of disruptions occurring are derived. Suitable changes and improvements in revenue sharing contracts can help coordinate the dual-channel supply chain with disruptions. Finally, the proposed models are further analysed through numerical examples.
    Original languageEnglish
    Pages (from-to)4999-5016
    JournalApplied Economics
    Volume50
    Issue number46
    Online published30 Apr 2018
    DOIs
    Publication statusPublished - 2018

    Research Keywords

    • coordination
    • cost disruption
    • price competition
    • revenue sharing contract
    • Supply chain management

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