The Impacts of Transshipment on Dual-Channel Coordination: A Fashion Company Case Study in China

Author(s):  
Tianyu Sun ◽  
Yixiong Yang
2018 ◽  
Vol 2 (01) ◽  
pp. 19-25
Author(s):  
Hilyatun Nuha ◽  
Putu Eka Dewi Karunia Wati

The development of internet brings great influence in business management, especially in supply chain. Transaction conducted through the internet in supply chain known e-fulfillment, is an integrated process from receiving customer order, managing transaction, warehousing, managing transportation, communicating, with customer using media of information technology. Online sales concept opens up the researchers to conduct research on online sales and offline sales simultaneously, known Dual Channel Supply Chain (DCSC). One category of products that are sold using this structure is fashion product. However, selling fashion product using DCSC structure it still has shortcomings and challenges. Due to customer can not make a selection, viewing and researching product and quality inspaction product dierctly. Based on this, some enterprises provide product warranty sales system offered. Warranty as a guarantee given to customer to provide security and comfort for making purchases. Warranty gives impact on price of product, both online and offline. This leads to the need to do a calculation the optimum price considering money back warranty. Optimum price obtained in the model demand function using quadratic programming adressing the objective function in the form profit maximum in individual channel (Pw, Ps dan Po) as well as whole profit in DCSC by considering the value of money back warranty   (g). The result obatained is optimum price for two scenarios. There are optimum price in individual channel without money back warranty and optimum price in online channel with accomodate money back warranty.   Keywords—dual channel supply chain (DCSC); money back warranty; optimization.


2019 ◽  
Vol 36 (02) ◽  
pp. 1940004 ◽  
Author(s):  
Xiaohong Yu ◽  
Sujuan Wang ◽  
Xindong Zhang

We introduce reference dependence to describe the fairness utility functions of channel members and model a dual-channel supply chain (one manufacturer and one retailer) in three scenarios: only the manufacturer is concerned with fairness, only the retailer is concerned with fairness, and both parties are concerned with fairness. The ordering decisions and coordination of a dual-channel supply chain under the online-to-offline (O2O) business model are studied. Nash equilibrium solutions exist for the channel order quantities in all three scenarios, and the inventory transshipment strategy can be used to coordinate the dual-channel supply chain under the O2O business model. Numerical examples are used to analyze the effectiveness and feasibility of coordination. The inventory transshipment strategy can be used to directly coordinate the dual-channel supply chain when only the manufacturer is concerned with fairness. The retailer feels unfair in the other two scenarios, which affects cooperation. To maintain cooperation with the retailer and achieve optimal supply chain efficiency and channel coordination, the manufacturer must compensate the retailer or choose one with fewer expectations regarding its channel status or fewer fairness concerns.


2019 ◽  
Vol 27 (3) ◽  
pp. 933-957 ◽  
Author(s):  
Jafar Heydari ◽  
Amin Aslani ◽  
Ali Sabbaghnia

Purpose Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain, comprising a traditional retailing channel and an e-channel under disruption. By benchmarking against the centralized decision structure, the authors intend to propose a collaboration model to achieve channel coordination as well as more reliable decisions. Design/methodology/approach Four different channel disruption scenarios, with customers’ reaction toward disruptions, are examined, and then, optimal pricing decisions for both centralized and decentralized decision-making structures are extracted. Next, a collaboration mechanism based on the dominancy power of channel members is developed to entice all channel members to participate in channel coordination. By benchmarking the proposed collaboration model against both the decentralized/centralized structures a win–win solution is guaranteed for all channel members. In addition, the proposed model ensures more reliable decisions than the centralized structure, as it guarantees less fluctuated income levels. Findings This study shows, as the disruption probability grows, the channel profit decreases while the channel-retailing price increases. Furthermore, the exact alignment of the centralized decision-making approach and the proposed collaboration model is not achievable due to the problem infeasibility. Numerical experiments and sensitivity analyses benchmark the performance of the proposed collaboration mechanism against the centralized structure for the full alignment with centralized decision-making approach. Originality/value This study contributes to the channel conflict literature as jointly considers pricing decisions, disruptions and coordination. Further, consumers’ reaction toward disruption is analyzed through a transshipment agreement.


2017 ◽  
Vol 1 (02) ◽  
pp. 19
Author(s):  
Hilyatun Nuha ◽  
Putu Eka Dewi Karunia Wati

The development of internet brings great influence in business management, especially in supply chain. Transaction conducted through the internet in supply chain known e-fulfillment, is an integrated process from receiving customer order, managing transaction, warehousing, managing transportation, communicating, with customer using media of information technology. Online sales concept opens up the researchers to conduct research on online sales and offline sales simultaneously, known Dual Channel Supply Chain (DCSC). One category of products that are sold using this structure is fashion product. However, selling fashion product using DCSC structure it still has shortcomings and challenges. Due to customer can not make a selection, viewing and researching product and quality inspaction product dierctly. Based on this, some enterprises provide product warranty sales system offered. Warranty as a guarantee given to customer to provide security and comfort for making purchases. Warranty gives impact on price of product, both online and offline. This leads to the need to do a calculation the optimum price considering money back warranty. Optimum price obtained in the model demand function using quadratic programming adressing the objective function in the form profit maximum in individual channel (Pw, Ps and Po) as well as whole profit in DCSC by considering the value of money back warranty (g). The result obatained is optimum price for two scenarios. There are optimum price in individual channel without money back warranty and optimum price in online channel with accomodate money back warranty.


Author(s):  
Weihua Liu ◽  
Wenfei Wu ◽  
Xiaoyu Yan ◽  
Wanying Wei ◽  
Xinyun Liu

2021 ◽  
Author(s):  
Juncai Jiang ◽  
Chuan He

In a dual channel, the manufacturer's low-price guarantee facilitates price discrimination and channel coordination and the manufacturer may choose price-beating, price-matching, or no guarantee.


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