Pricing Policies And Coordination Strategies In Dual-Channel Supply Chains Under Competition

The electronic commerce and the rapid development of logistics industry make themarketing mode change greatly. Recently, the dual-channel mode has been applicatedfrequently. In the dual-channel supply chain, the manufacturers on the one hand assuppliers provide products to the retailers, on the other hand, as direct sellers of theproducts, they are the competitors of the retailers.At the same time, manufacturers alsowill face the other manufacturers of products of the same type. When the e-channel isintroduced into the supply chain, distribution system becomes more complicated, how tomake pricing strategy and coordinate the interests of the members of the supplychain,and how to achieve the win-win situation.These problems bring new challenges todual-channel supply chain development.Under the situation of the vertical competition of different manufacturers andhorizontal competition between manufacturers and retailers, the thesis discusses theoptimal pricing strategy of two homogeneous products in retail channel and e-channelbased on Stackelberg model, and using Matlab software to do the sensitivity analysis ofthe model parameters. In addition, this thesis also determines the conditions to establishthe e-channel for the manufacturer,and it also analyzes what impact it would have on theprofit of each participant of the supply chain while the manufacturer establishing thee-tail. Then this thesis also compares the profits of the manufacturers and retailersbetween decentralized and centralized decision-making situations.The thesis construct anincome compensation system contract between manufacturer and retailer by defining thewholesale price and income compensation to coordinate the dual-supply chain. Theresults show that the contract can actually improve the supply chain efficiency, and it cancreate win-win situation for manufacturer and retailer.