Research On Capacity Decision Of Dual-channel Supply Chain Under Random Demand

The main purpose of this study is to develop the optimal capacity and optimalorder quantity of the manufacturer and the retailer on under Stochastic Demand indual-channel supply chain. The dual-channel supply chain is a two-level supply chainthat contains an electronic direct marketing channel and a traditional retail channel. Inthe supply chain, the manufacturer sells products through two channels and the retailerin the traditional channel orders from the manufacturer and then sells them to thecustomer. This article on characteristics of the double-channel supply chain usinggame theory, Economics, Theory of operations research and approaches like documentanalysis, charts analysis and combination analysis of qualitative and quantitativestudied the capacity decisions of the double-channel supply chain.In the first this article describes the capacity decision model of one-stage salescycle of the duel-channel supply chain under adequate capacity. It models based on thenewsboy problem under stochastic demand and the model is in term of the retailer’sdecision whether or not orders in advance before the sales cycle. And the modelanalyses respectively the optimal productivity and optimal order quantity underadequate capacity when the manufacturer and the retailer cooperate to maximizeoverall profit of the supply chain and when they seek maximum profit by oneselfunder the non-cooperation Stackelberg game. This section is the basis of the model inthe article. Next the article based on the model with sufficient capacity makes anin-depth discussion about the optimal decisions of the manufacturer and the retailer,when they are in cooperative mode and in a non-cooperative mode respectively underlimited production capacity; Then considering the problem that the uncertainty is bigwhether to order in advance before the sales cycle and the issue that the expectedproductivity of the one-stage sales cycle is inaccurate under stochastic demand, thisarticle studies a more precise method to calculate the optimal capacity and optimalorder quantity when the sales cycle is divided into multiple stages; Finally, with a casestudy of Haier and combining the characteristics and problems of our country’s household electrical appliance enterprises with dual-channel mode, the article raisedfor some creative suggestions about the optimal capacity decisions under two channelsand some new ideas about management model of the dual-channel marketing.