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Price and Service Competition of Dual-Channel Supply Chain with Consumer Returns

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  • Lili Ren
  • Yong He
  • Houfei Song

Abstract

Products returned by consumers are common in the retail industry and result in additional costs to both the manufacturer and the retailer. This paper proposes dual-channel supply chain models involving consumer returns policies. Also, the price and service competition between retail channel and direct channel is considered in the models. According to the models, we analyze the optimal decisions in both centralized and decentralized scenarios. Then we design a new contract, coordinate the dual-channel supply chain, and enable both the retailer and the manufacturer to be a win-win.

Suggested Citation

  • Lili Ren & Yong He & Houfei Song, 2014. "Price and Service Competition of Dual-Channel Supply Chain with Consumer Returns," Discrete Dynamics in Nature and Society, Hindawi, vol. 2014, pages 1-10, February.
    • Handle: RePEc:hin:jnddns:565603
    DOI: 10.1155/2014/565603
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