Research On Pricing And Channel Strategy Of Supply Chain With Delay In Payments And Cash Discount Consideration In O2O Environment

Delay in payments as a short-term commercial credit and a marketing tool have been widely existed in real business activities especially in economic powerhouses such as China,the United States,the United Kingdom.Meanwhile,the development of the network has been overwhelming,online shopping has become the latest wave of shopping,which greatly impacted the traditional business channels.In the 020 environment,manufacturers usually have three distribution channels:dual-channel,single retail channel,single direct channel,so cosidering the delay in payments into the these most common supply chain structure has theoretical and practical implications.In this context,we want to study the optimal delay in payment,pricing of supply chain members as well as manufacturers of channel strategy under three channel structure.The main work of this paper includes the following aspects:(1)In consideration of delay in payments and taking into account the delay in payment and cash discount,the paper solves and analyzes the optimal pricing strategy of supply chain members of the two scenarios under three channel distribution models.In this paper,Stackelberg game model was constructed under the dual-channel and single retail channel modes,we gets the optimal member pricing strategy through category talk,we also analyze the difference between the situation delay in payments consideration and the situation no delay in payments consideration.In the case of a single direct channel,the paper constructs a manufacturer's profit maximization model with netizens scale into account.(2)In dual channel and single retail channel model,we solve the optimal manufacturer's delay in payments term.After calculating the pricing strategies,we get the optimal delay in payments term by maximize manufacturer's profits,we also analyzes the sensitivity analysis of delay in payments on retailer's order cycle and consumer preferences toward direct channel.(3)Taking into account the delay in payment and cash discount,we give a algorithm to determine the point of repayment of retailers.supply chain members of the two cases,supply chain members' profit model are constructed under the case of normal repayment and prepayment,then we determine the optimal point of repayment based on a comparison of retailers profits of the two repayment point.We also study the impact of cash discount on point of repayment,pricing and profit of members,profit of the supply chain by detailed numerical example.(4)We study the manufacturer's optimal channel selection strategy with delay in payments and cash discount consideration.First we analyzes the optimal channel strategy by considering delay in payments only,then we analyzes the optimal channel strategy by considering both of delay in payments and cash discount,we also compare the two cases.Cosidering the delay in payments in O2O environment,this paper studies the supply chain member's pricing and manufacturer's channel selection strategy,which enriches the theory of dual channel supply chain and delay in payment.Analysis of members' pricing strategy,the optimal delay in payment term,repayment point and channel selection strategy of manufacturer can provide a reference for both buyers and sellers in realistic business activity.