Research On Pricing Of Dual-channel Supply Chain Under Uncertain Demand

The rapid development of e-commerce gradually changed people's consumption habits,so more and more customers tend to shop online.The emergence of online sales channels not only makes shopping more convenient,but also makes the supply chain structure becomes different,and the relationship between manufacturers and retailers therefore changes.With the increasing expectation for products and services,drop-shipping comes into being,namely,retailers receive orders and money from customers,and then forward the order to the manufacturer,and the manufacturer will sent products directly to the customer.On the one hand,the drop-shipping model reduces the intermediate link and reduces the cost of the supply chain.On the other hand,the inventory is transferred to the manufacturer,effectively reducing the retailer's capital occupation,the transportation costs and the times of loading and unloading,as well as improving the integrity and freshness of the product.This study will take the uncertainty of demand into account,comparing the problem of optimal pricing and profits of dominant manufacture and dominant retailer dual-channel supply chain for existence or non-existence drop-shipping model.First,by establishing a dual-channel supply channel mathematical model,which is dominated by the manufacturer or retailer,we can solve the expression of optimal pricing and order quantity about manufacturer and retailer in centralized decision model.Using the Stackelberg game,we got the optimal pricing in decentralized decision model.Likewise,we use the same method to get the optimal pricing and order quantity in the drop-shipping model.In order to make the comparison result more intuitive,we analyze the influence of parameter's changes on supply chain pricing and profit by example analysis.This study found that manufacturers and retailers are inclined to open their own online retail channels to get higher profits.In the case of adopting drop-shipping model,the total profit of the supply chain,manufacturer and the retailer at high safety stock level are higher than the low safety stock level for the mode of centralized decision of dual-channel supply chain which is dominant manufacture or dominant retailer.Therefore,in the centralized decision model,the supply chain tends to reserve as high as possible safety stock in order to obtain higher profits.In the decentralized decision model,the introduction of drop-shipping undermines the profit of the manufacturer,but it allows the retailer to benefit from it,while the total profit of the supply chain has also improved.The dominant retailer dual-channel supply chain shouldn't adopt the drop-shipping model in the low safety stock level.The problems and conclusions of this paper have some theoretical significance for the pricing strategy and mode selection of the dual-channel supply chain with uncertain demand in the current e-commerce environment,and also provide the ideas for the actual pricing decision of the manufacturers and retailers.