Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition

@article{Ryan2013CoordinatingAS,
  title={Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition},
  author={Jennifer K. Ryan and Daewon Sun and Xuying Zhao},
  journal={IEEE Transactions on Engineering Management},
  year={2013},
  volume={60},
  pages={247-259}
}
We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a function of the prices in each channel. We model each channel as a newsvendor problem, with price and order quantity as decision variables. In addition, the manufacturer must choose the wholesale price to… CONTINUE READING