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

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

21 Scopus Citations
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Author(s)

  • Chunhua Tang
  • Honglin Yang
  • Erbao Cao
  • Kin Keung Lai

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)4999-5016
Journal / PublicationApplied Economics
Volume50
Issue number46
Online published30 Apr 2018
Publication statusPublished - 2018

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.

Research Area(s)

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

Citation Format(s)

Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions. / Tang, Chunhua; Yang, Honglin; Cao, Erbao; Lai, Kin Keung.

In: Applied Economics, Vol. 50, No. 46, 2018, p. 4999-5016.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review