Channel Selection and Coordination in Dual-Channel Supply Chains

Authors

Gangshu (George) Cai, Santa Clara UniversityFollow

Document Type

Article

Publication Date

3-2010

Publisher

Elsevier

Abstract

This paper investigates the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain in the context of two single-channel and two dual-channel supply chains. We extensively study two Pareto zone concepts: channel-adding Pareto zone and contract-implementing Pareto zone. In the channel-adding Pareto zone, both the supplier and the retailer benefit from adding a new channel to the traditional single-channel supply chain. In the contract-implementing Pareto zone, it is mutually beneficial for the supplier and the retailer to utilize the proposed contract coordination policy. The analysis suggests the preference lists of the supplier and the retailer over channel structures with and without coordination are different, and depend on parameters like channel base demand, channel operational costs, and channel substitutability.

Comments

© 2010. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/

Recommended Citation

Cai, G. (George). (2010). Channel Selection and Coordination in Dual-Channel Supply Chains. Journal of Retailing, 86(1), 22–36. https://doi.org/10.1016/j.jretai.2009.11.002