Price, delivery time, and retail service sensitive dual-channel supply chain

Abstract

This study deals with a dual channel supply chain where selling price of each player, delivery time for direct channel and retail service dependent demand structures are considered for manufacturer and retailer. In the direct channel, the manufacturer sells the products directly to the customers with a maximum mentioned delivery time. The delivery time of the products is adjustable according to customers' demand with extra delivery charge. In the retail channel, the customers are extra benefited by the retail service and direct connection with the products. Selling price for direct market is considered as lower than the retail market selling price. The behavior of the model under integrated system is analyzed. In the decentralized structure, vertical Nash and manufacturer Stackelberg models are also discussed. The sensitivity of the key parameters is examined to test feasibility of the model. Finally, a numerical example with graphical illustrations is provided to investigate the proposed model.