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Channel characteristics and coordination in three-echelon dual-channel supply chain

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  • Subrata Saha

Abstract

We explore the impact of channel structure on the manufacturer, the distributer, the retailer and the entire supply chain by considering three different channel structures in radiance of with and without coordination. These structures include a traditional retail channel and two manufacturer direct channels with and without consistent pricing. By comparing the performance of the manufacturer, the distributer and the retailer, and the entire supply chain in three different supply chain structures, it is established analytically that, under some conditions, a dual channel can outperform a single retail channel; as a consequence, a coordination mechanism is developed that not only coordinates the dual channel but also outperforms the non-cooperative single retail channel. All the analytical results are further analysed through numerical examples.

Suggested Citation

  • Subrata Saha, 2016. "Channel characteristics and coordination in three-echelon dual-channel supply chain," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(3), pages 740-754, February.
    • Handle: RePEc:taf:tsysxx:v:47:y:2016:i:3:p:740-754
    DOI: 10.1080/00207721.2014.904453
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    Cited by:

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    2. 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.
    3. Lei Yan & Jianhao Gao & Shuang Wang & Shandong Mou & Guangye Xu & Haiyan Wang, 2023. "Product Quality Matching Strategy in a Dual-Channel Supply Chain: A Perspective From Mental Accounting Theory in Behavioral Finance," SAGE Open, , vol. 13(2), pages 21582440231, May.
    4. Biswas, Indranil & Gupta, Rohit & Tiwari, Sunil & Talluri, Srinivas, 2023. "Multi-echelon supply chain coordination: Contract sequence and cut-off policies," International Journal of Production Economics, Elsevier, vol. 259(C).
    5. Yuan, Yanhong & Yang, Jinyao & Li, Yang & Li, Wei, 2020. "Necessary conditions for coordination of dual-channel closed-loop supply chain," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    6. Jena, Sarat Kumar & Padhi, Sidhartha S & Cheng, T.C.E., 2023. "Optimal selection of supply chain financing programmes for a financially distressed manufacturer," European Journal of Operational Research, Elsevier, vol. 306(1), pages 457-477.

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