Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions |
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| Authors: | Chunhua Tang Honglin Yang Kin Keung Lai |
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| Affiliation: | 1. College of Economics and Trade, Hunan University, Changsha, China;2. Business College of Hunan International Economics University, Changsha, China;3. School of Business Administration, Hunan University, Changsha, China;4. Department of Management Sciences, City University of Hong Kong, Kowloon Tong, Hong Kong, China |
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| Abstract: | The impacts of simultaneous disruption of demand and cost on pricing, production and coordination of a dual-channel supply chain with one manufacturer and one retailer are examined. First, coordination of the dual-channel supply chain without disruption is proposed, by using a revenue sharing contract. Furthermore, the effects of simultaneous disruption of demand and cost on pricing, production and profit are examined from the perspective of partners and the whole supply chain. Optimal prices and quantum of production in the event of disruptions occurring are derived. Suitable changes and improvements in revenue sharing contracts can help coordinate the dual-channel supply chain with disruptions. Finally, the proposed models are further analysed through numerical examples. |
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| Keywords: | Supply chain management cost disruption coordination revenue sharing contract price competition |
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