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

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

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.

Suggested Citation

  • Chunhua Tang & Honglin Yang & Erbao Cao & Kin Keung Lai, 2018. "Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4999-5016, October.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4999-5016
    DOI: 10.1080/00036846.2018.1466989
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    Cited by:

    1. Sarin Raju & T. M. Rofin & S. Pavan Kumar, 2024. "Pricing decisions during panic buying and its effect on a dual-channel supply chain under different channel power structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(2), pages 83-95, April.
    2. Heydari, Jafar & Govindan, Kannan & Aslani, Amin, 2019. "Pricing and greening decisions in a three-tier dual channel supply chain," International Journal of Production Economics, Elsevier, vol. 217(C), pages 185-196.
    3. Pi, Zhenyang & Fang, Weiguo & Perera, Sandun C. & Zhang, Baofeng, 2022. "Enhancing the online buyer perception of consumer experience products in a dual-channel supply chain: A new role of free-riding," International Journal of Production Economics, Elsevier, vol. 253(C).
    4. Lingli Shu & Xuedong Liang & Jingyuan Yao & Peng Luo, 2023. "Price Optimization of Closed-loop Supply Chain With Uncertain Demand Under Multi-channel Cross Influence," SAGE Open, , vol. 13(4), pages 21582440231, December.
    5. Liurui Deng & Lan Yang & Wei Li, 2021. "Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF," Sustainability, MDPI, vol. 13(11), pages 1-20, May.

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