Channels Selection Optimization Decisions For Supply Chain Under Brand Competition

With the fierce competition of the brand,the direct channel is rapidly influencing the enterprise's channel strategy.It is the unique advantages and potential that attracts the academic circles and enterprises.More and more enterprises are willing to integrate the channels.In terms of the consumer,the diversification of channels means more options and cost savings,channel combination of sales model can meet consumers' various demand for products.For the enterprises in supply chain,the choice of channels is a crucial business decision directly related to the competition in similar products and the success of enterprise's strategy.The study,by using the consumer utility function model,Stackelberg game and evolutionary game,are to find the optimal decision of supply chain channel selection.Besides,the study also analyzes the influence of the parameters on supply chain decision variables which provides the reference for the enterprise channel strategy.The main content of this study is divided into three parts.Firstly,in the known single-brand supply chain system,the researches try to find the optimization strategy of the supply chain and analyze the influence of the channel replacement rate on pricing and profit.Only in this way,can the Pareto area of channel improvement be found.Secondly,in the known as own-brand competition supply chain system,the researches explore the channel selection optimization strategy and analyze the relative competitiveness of the brand on chain pricing sales volume and profits.Finally,the researchers use the dynamic evolutionary game theory instead of Stackelberg game.They establish the replicated dynamic equations by whether the manufacturer develops the direct channel and whether the retailer introduces private label.In addtion,they analyze the stability of the equilibrium point of the manufacturer and the retailer to achieve the long-term chennel selection.for supply chain.Results as follows:(1)In a single brand supply chain system,as for manufacturers,they can get the highest profits from the dual channel mode and minimum profit from traditional single channel mode.But for retailers,single channel model is superior to the dual-channel mode.(2)In a own brand supply chain system,dual channel mode is the best channel decisions for the manufacturer,and the single traditional channel mode is poor in profits.For retailers,single traditional channel model and dual channel model are superior to single direct channel,and dual channel model and the merits of the single traditional channel mode depends on the brand relative competitiveness,the channels replacement rate and the brand replacement rate.(3)When both the manufacturers and retailers do not know each other's strategy,the researches get the two stable equilibrium structure of supply chain system: First of all,the retailers bring the own brand to the supply chain and the manufacturers set the direct sales channel.Besides,the manufacturers establish the direct sales channels,but the retailers can't bring their own brands to the system.The stable system depends on the profits of the traditional channel in the dual channel.When the manufacturers choose to introduce the direct channel,if the profit of the retailers are lower than the non-introducer,the evolution result is that the manufacturers establish the network direct channel and the retailers do not introduce the own brand to the supply chain.If the profit of own brand is higher than that of non-introduction,the evolution result is that the manufacturers establish the direct channel and the retailers introduc the own brand to the supply chain.Generally speaking,the manufacturer's best channel strategy is to set the direct channels regardless of retailers' brand decision.