Research On The Pricing Decision And Coordination In A Two Class Dual-Channel Supply Chain With Dominant Firms

With the rapid development of e-commerce and express business, the distribution model is also corresponding to change dramatically. More and more manufacturing companies put internet sales channel as an important distribution channel. Therefore, the dual-channel supply chain appeared. Many scholars have already proved that the dual-channel can increase the sales of the supply chain. However, it will cause the conflict of the manufacturer and retailer. So, it is important to use some appropriate means to promote the coordination of the dual-channel supply chain. Meanwhile, with the consumer demand increases for products and services, the role of retailers in the supply chain has also undergone a change, a growing number of large retailers (such as Wal-Mart, Carrefour, and Suning, Gome, etc.) even hold a dominant position in the supply chain. The power of manufacturers and retailers in the supply chain also makes the price and the coordinated manner to be different, so, it is also very necessary to do some research about it in the supply chain.Based on the theory and the relevant research of dual-channel supply chain, this paper use the Stackelberg game theory, contract theory and optimization theory, use combination of quantitative and qualitative methods, in-depth research on the pricing decision and coordination of the manufacturer-led dual-channel supply chain and the retailer-led dual-channel supply chain. In addition, we analyze the coordinative effect of the two-part tariff contract, build the game models of centralized decision-making, decentralized decision-making and the price consistent decision-making in the dual-channel supply chain, comparative analyze the optimal solution of the above three decision-making mode and the profits of the manufacturer, the retailer as well as supply chain. Finally, we use Matlab to do numerical analysis to prove the rationality and correctness of our analysis process and analysis results.The results show that:Both in the manufacturer-led dual-channel supply chain and the retailer-led dual-channel supply chain, the decentralized decision-making and the price consistent decision-making will cause double marginalization effect and the profits of the supply chain system are less than the case of centralized decision-making; The price consistent decision-making can increase the profits of the supply chain vulnerable participant under certain conditions; the dual-channel supply chain can achieve Perfect coordination when we use two-part tariff contract.