IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v73y2023ics0969698923000541.html
   My bibliography  Save this article

The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing

Author

Listed:
  • Sarkar, Mitali
  • Dey, Bikash Koli
  • Ganguly, Baishakhi
  • Saxena, Neha
  • Yadav, Dharmendra
  • Sarkar, Biswajit

Abstract

Data sharing among the supply chain players can be an exceptionally significant factor for the retailing industry. In this consideration, an improved retailing methodology for a dual-channel supply chain with a single retailer and manufacturer is built under the bullwhip effect and asymmetric data sharing. Retailer provides asymmetric information to the manufacturer regarding demand to increase their profit. In this scenario, measuring the bullwhip effect is essential in retailing strategy. By adopting an online-to-offline retailing strategy, industries can earn more profit and increase the satisfaction level of customers. The present study focuses on dual-channel retailing, where the demand for the product in both channels varies with the selling price. Keeping in mind the goal of sustainable development, an advanced transportation strategy is utilized in this study, along with some carbon emission costs. Autonomated inspection is utilized to identify defective products. Finally, centralized and decentralized profit functions are formulated for this study. Several cases and numerical examples are provided to validate this study. It is clear from the numerical findings that information sharing within the players provides 1.26% more profit compared to a decentralized case. Due to asymmetric information, which leads to the bullwhip effect, the retailing system faces loss. Thus, information sharing is 0.19% beneficial for dual-channel retailing. Sensitivity analysis for key parameters ensures the findings' applicability in the real world.

Suggested Citation

  • Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
  • Handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000541
    DOI: 10.1016/j.jretconser.2023.103307
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698923000541
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2023.103307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mobini, Zahra & van den Heuvel, Wilco & Wagelmans, Albert, 2019. "Designing multi-period supply contracts in a two-echelon supply chain with asymmetric information," European Journal of Operational Research, Elsevier, vol. 277(2), pages 542-560.
    2. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Hult, G. Tomas M. & Sharma, Pratyush Nidhi & Morgeson, Forrest V. & Zhang, Yufei, 2019. "Antecedents and Consequences of Customer Satisfaction: Do They Differ Across Online and Offline Purchases?," Journal of Retailing, Elsevier, vol. 95(1), pages 10-23.
    4. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Competitive sustainable processes and pricing decisions in omnichannel closed-up supply chains under different channel power structures," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    5. Chen, Chen & Duan, Yongrui, 2022. "Impact of personalization and privacy concerns on information disclosure and pricing," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    6. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    7. Yang, Xiao & Liu, Ying & Dong, Jichang & Li, Sirui, 2023. "Impact of streamers’ characteristics on sales performance of search and experience products: Evidence from Douyin," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    8. Dey, Bikash Koli & Sarkar, Mitali & Chaudhuri, Kripasindhu & Sarkar, Biswajit, 2023. "Do you think that the home delivery is good for retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    9. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    10. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    11. Wu, Yisheng & Lu, Ronghua & Yang, Jing & Xu, Feng, 2021. "Low-carbon decision-making model of online shopping supply chain considering the O2O model," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    12. Meena, Purushottam & Kumar, Gopal, 2022. "Online food delivery companies' performance and consumers expectations during Covid-19: An investigation using machine learning approach," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    13. Ilkyeong Moon & Won Young Yun & Biswajit Sarkar, 2022. "Effects of variable setup cost, reliability, and production costs under controlled carbon emissions in a reliable production system," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 16(4), pages 371-397.
    14. Taleizadeh, Ata Allah & Tafakkori, Keivan & Thaichon, Park, 2021. "Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    15. Huang, Wencheng & Zhang, Yue & Kou, Xingyi & Yin, Dezhi & Mi, Rongwei & Li, Linqing, 2020. "Railway dangerous goods transportation system risk analysis: An Interpretive Structural Modeling and Bayesian Network combining approach," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    16. Songtao Zhang & Min Zhang, 2020. "Mitigation of Bullwhip Effect in Closed-Loop Supply Chain Based on Fuzzy Robust Control Approach," Complexity, Hindawi, vol. 2020, pages 1-17, January.
    17. Javad Asadkhani & Hadi Mokhtari & Saman Tahmasebpoor, 2022. "Optimal lot-sizing under learning effect in inspection errors with different types of imperfect quality items," Operational Research, Springer, vol. 22(3), pages 2631-2665, July.
    18. Zhang, Guangming & Dai, Gengxin & Sun, Hao & Zhang, Guitao & Yang, Zhilin, 2020. "Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    19. Raj Kumar Bachar & Shaktipada Bhuniya & Santanu Kumar Ghosh & Biswajit Sarkar, 2022. "Controllable Energy Consumption in a Sustainable Smart Manufacturing Model Considering Superior Service, Flexible Demand, and Partial Outsourcing," Mathematics, MDPI, vol. 10(23), pages 1-29, November.
    20. Saxena, Neha & Sarkar, Biswajit, 2023. "How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    21. Shi, Chun-lai & Geng, Wei, 2021. "To introduce a store brand or not: Roles of market information in supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    22. Jung, Se-Youn & Huh, Woonghee Tim & Park, Kun Soo, 2022. "Impact of the arm’s length regulation on a supply chain with asymmetric retailers," European Journal of Operational Research, Elsevier, vol. 300(3), pages 865-883.
    23. Li, Dan & Liu, Yongmei & Hu, Junhua & Chen, Xiaohong, 2021. "Private-brand introduction and investment effect on online platform-based supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    24. Giri, B.C. & Glock, C.H., 2022. "The bullwhip effect in a manufacturing/remanufacturing supply chain under a price-induced non-standard ARMA(1,1) demand process," European Journal of Operational Research, Elsevier, vol. 301(2), pages 458-472.
    25. Li, Dong & Dong, Chuanwen, 2022. "Government regulations to mitigate the shortage of life-saving goods in the face of a pandemic," European Journal of Operational Research, Elsevier, vol. 301(3), pages 942-955.
    26. Campo, Katia & Lamey, Lien & Breugelmans, Els & Melis, Kristina, 2021. "Going Online for Groceries: Drivers of Category-Level Share of Wallet Expansion," Journal of Retailing, Elsevier, vol. 97(2), pages 154-172.
    27. Ronan de Kervenoael & Alexandre Schwob & Careen Chandra, 2020. "E-retailers and the engagement of delivery workers in urban last-mile delivery for sustainable logistics value creation: Leveraging legitimate concerns under time-based marketing promise," Post-Print hal-02780647, HAL.
    28. Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    29. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    30. Ahn, Ji Ho & Seo, Min Hyung & Kim, Tong Seop, 2021. "Efficiency maximization of a quadruple power generation system with zero carbon emission," Energy, Elsevier, vol. 226(C).
    31. de Kervenoael, Ronan & Schwob, Alexandre & Chandra, Careen, 2020. "E-retailers and the engagement of delivery workers in urban last-mile delivery for sustainable logistics value creation: Leveraging legitimate concerns under time-based marketing promise," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    32. Zhang, Qiao & Chen, Jing & Chen, Bintong, 2021. "Information strategy in a supply chain under asymmetric customer returns information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    33. Xia, Jing & Niu, Wenju, 2021. "Carbon-reducing contract design for a supply chain with environmental responsibility under asymmetric information," Omega, Elsevier, vol. 102(C).
    34. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    35. Liu, Chao & Chen, Weidong & Zhou, Qian & Mu, Jing, 2021. "Modelling dynamic freshness-keeping effort over a finite time horizon in a two-echelon online fresh product supply chain," European Journal of Operational Research, Elsevier, vol. 293(2), pages 511-528.
    36. Nie, Pu-yan & Chen, Zi-rui & Wang, Chan, 2021. "Intellectual property pricing under asymmetric duopoly," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    37. Ruchi Chauhan & Varun Kumar & Tapas Kumar Jana & Arunava Majumder, 2021. "A Modified Customization Strategy in a Dual-Channel Supply Chain Model with Price-Sensitive Stochastic Demand and Distribution-Free Approach," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-25, September.
    38. Li, Yimeng & Xiong, Yu & Mariuzzo, Franco & Xia, Senmao, 2021. "The underexplored impacts of online consumer reviews: Pricing and new product design strategies in the O2O supply chain," International Journal of Production Economics, Elsevier, vol. 237(C).
    39. Tamannaei, Mohammad & Zarei, Hamid & Rasti-Barzoki, Morteza, 2021. "A game theoretic approach to sustainable freight transportation: Competition between road and intermodal road–rail systems with government intervention," Transportation Research Part B: Methodological, Elsevier, vol. 153(C), pages 272-295.
    40. Qin, Wei & Sun, Yan-Ning & Zhuang, Zi-Long & Lu, Zhi-Yao & Zhou, Yao-Ming, 2021. "Multi-agent reinforcement learning-based dynamic task assignment for vehicles in urban transportation system," International Journal of Production Economics, Elsevier, vol. 240(C).
    41. Giri, B. C. & Glock, C. H., 2022. "The bullwhip effect in a manufacturing/remanufacturing supply chain under a price-induced non-standard ARMA(1,1) demand process," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132285, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    42. Sutcliffe, Chloe & Knox, Jerry & Hess, Tim, 2021. "Managing irrigation under pressure: How supply chain demands and environmental objectives drive imbalance in agricultural resilience to water shortages," Agricultural Water Management, Elsevier, vol. 243(C).
    43. Jiang, Zhong-Zhong & He, Na & Huang, Song, 2021. "Government penalty provision and contracting with asymmetric quality information in a bioenergy supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    44. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad Hassan & Daher, Maya Mostafa, 2023. "A sustainable step forward: Understanding factors affecting customers’ behaviour to purchase remanufactured products," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    45. Ullah, Mehran & Sarkar, Biswajit, 2020. "Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality," International Journal of Production Economics, Elsevier, vol. 219(C), pages 360-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taniya Mukherjee & Isha Sangal & Biswajit Sarkar & Tamer M. Alkadash & Qais Almaamari, 2023. "Pallet Distribution Affecting a Machine’s Utilization Level and Picking Time," Mathematics, MDPI, vol. 11(13), pages 1-17, July.
    2. Taheri, Babak & Yousaf, Anish & Gannon, Martin & Mishra, Abhishek, 2024. "e-commerce website customer engagement: Delineating the role of UTAUT, vividness, and compulsion," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    3. Li, Zhaotong & Wu, Min & Teo, Chee-Chong & Yuen, Kum Fai, 2024. "An investigation of consumer switching intention on the use of automated courier station from a signaling perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    4. Chauhan, Ruchi & Majumder, Arunava & Kumar, Varun, 2023. "The impact of adopting customization policy and sustainability for improving consumer service in a dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    6. Sarkar, Biswajit & Kar, Sumi & Pal, Anita, 2024. "Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    2. Sarkar, Biswajit & Kar, Sumi & Pal, Anita, 2024. "Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    3. Hota, Soumya Kanti & Sarkar, Biswajit & Ghosh, Santanu Kumar & Cheikhrouhou, Naoufel & Treviño-Garza, Gerardo, 2024. "What should be the best retail strategy to deal with an unequal shipment from an unreliable manufacturer?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    4. Sohani, Sahar & Barman, Tuli & Sarkar, Biswajit & Gunasekaran, Angappa & Pareek, Sarla, 2024. "Retail management policy through firefly algorithm under uncertainty using Dempster-Shafer theory for production firm," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    5. Sarkar, Biswajit & Kar, Sumi & Basu, Kajla & Seo, Yong Won, 2023. "Is the online-offline buy-online-pickup-in-store retail strategy best among other product delivery strategies under variable lead time?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    6. Sarkar, Biswajit & Seok, Hyesung & Jana, Tapas Kumar & Dey, Bikash Koli, 2023. "Is the system reliability profitable for retailing and consumer service of a dynamical system under cross-price elasticity of demand?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    7. Dey, Bikash Koli & Sarkar, Mitali & Chaudhuri, Kripasindhu & Sarkar, Biswajit, 2023. "Do you think that the home delivery is good for retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    8. Rekha Guchhait & Biswajit Sarkar, 2023. "Increasing Growth of Renewable Energy: A State of Art," Energies, MDPI, vol. 16(6), pages 1-29, March.
    9. Mishra, Mowmita & Ghosh, Santanu Kumar & Sarkar, Biswajit & Sarkar, Mitali & Hota, Soumya Kanti, 2024. "Risk management for barter exchange policy under retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    10. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    11. Amankou, Kunomboua Anicet Cyrille & Guchhait, Rekha & Sarkar, Biswajit & Dem, Himani, 2024. "Product-specified dual-channel retail management with significant consumer service," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    12. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    13. Saha, Subrata & Sarkar, Biswajit & Sarkar, Mitali, 2023. "Application of improved meta-heuristic algorithms for green preservation technology management to optimize dynamical investments and replenishment strategies," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 209(C), pages 426-450.
    14. Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    15. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro, 2023. "Multichannel customer purchase behavior and long tail effects in the fashion goods market," Journal of Retailing, Elsevier, vol. 99(1), pages 46-65.
    16. Saxena, Neha & Sarkar, Biswajit, 2023. "How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    17. Wang, Haibo & Alidaee, Bahram, 2023. "White-glove service delivery: A quantitative analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    18. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh & Vahedi-Nouri, Behdin & Sarkar, Biswajit, 2023. "New products or remanufactured products: Which is consumer-friendly under a closed-loop multi-level supply chain?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    19. Bingbing Cao & Tianhui You & Chunyi Liu & Jian Zhao, 2021. "Pricing and Channel Coordination in Online-to-Offline Supply Chain Considering Corporate Environmental Responsibility and Lateral Inventory Transshipment," Mathematics, MDPI, vol. 9(20), pages 1-30, October.
    20. Chauhan, Ruchi & Majumder, Arunava & Kumar, Varun, 2023. "The impact of adopting customization policy and sustainability for improving consumer service in a dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000541. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.