Impacts of government interventions on pricing policies of the dual-channel supply chain by considering retailer services
الموضوعات :Taher Javadi 1 , Ashkan Hafezalkotob 2
1 - College of Industrial Engineering, South Tehran Branch, Islamic Azad University, Entezari Aly, Oskoui st, Choobi Brg, Tehran, 1151863411, Iran
2 - College of Industrial Engineering, South Tehran Branch, Islamic Azad University, Entezari Aly, Oskoui st, Choobi Brg, Tehran, 1151863411, Iran
الکلمات المفتاحية: Game Theory, Dual-channel supply chain, Government regulation, Retail services, Pricing policies,
ملخص المقالة :
In this study, the implications of the government’s tariffs on optimal pricing decisions in a dual-channel SC with one manufacturer and one retailer by taking into account the retailer services are examined. First, the best response strategies of retailer and manufacturer have obtained following the government’s tariffs by using a Stackelberg game model. Then, the government problem has modeled in six scenarios in a competitive mode about service level, social welfare, and government’s revenue-seeking policies. It can be concluded that retailer services affect the optimal manufacturer and retailer’s decisions. Moreover, with the sensitivities analysis that was studied on government models, it was shown that an integrated SC could better serve the government to achieve its goals. Also, the optimal strategies of the manufacturer and retailer of a dual-channel supply chain have been reached to the government’s social and economic goals. It can be found that the government with proper tariffs could coordinate social, economic, and service objectives.
Basiri Z, Heydari J (2017) A mathematical model for green supply chain coordination with substitutable products. J Clean Prod 145:232–249
Boulding KE (1945) The concept of economic surplus. Am Econ Rev 35:851–869
Boyaci T, Gallego G (2004) Supply chain coordination in a market with customer service competition. Prod Oper Manag 13:3–22
Cai GG (2010) Channel selection and coordination in dual-channel supply chains. J Retail 86:22–36
Cai GG, Zhang ZG, Zhang M (2009) Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes. Int J Prod Econ 117:80–96
Chen J, Grewal R (2013) Competing in a supply chain via fullrefund and no-refund customer returns policies. Int J Prod Econ 146:246–258
Chen K-Y, Kaya M, Özer Ö (2008) Dual sales channel management with service competition. Manuf Serv Oper Manag 10:654–675
Chen YC, Fang S-C, Wen U-P (2013) Pricing policies for substitutable products in a supply chain with Internet and traditional channels. Eur J Oper Res 224:542–551
Chiang W-YK, Chhajed D, Hess JD (2003) Direct marketing, indirect profts: a strategic analysis of the dual-channel supply-chain design. Manag Sci 49:1–20
Chopra S, Meindl P (2004) Supply chain management: strategy, planning, and control. Pearson Education Inc., Upper Saddle River
Dan B, Xu G, Liu C (2012) Pricing policies in a dual-channel supply chain with retail services. Int J Prod Econ 139:312–320
Dan B, Qu Z, Liu C, Zhang X, Zhang H (2014) Price and service competition in the supply chain with both pure play internet and strong bricks-and-mortar retailers. J Appl Res Technol 12:212–222
Dixit A (2005) Incentive contracts for faith-based organizations to deliver social services. In: Lahiri S (ed) Economic theory in a changing world: policy modelling for growth. Oxford University Press, Oxford
Dumrongsiri A, Fan M, Jain A, Moinzadeh K (2008) A supply chain model with direct and retail channels. Eur J Oper Res
187:691–718
Gofn K (1999) Customer support: a cross-industry study of distribution channels and strategies. Int J Phys Distrib Logist Manag 29:374–398
Hafezalkotob A (2015) Competition of two green and regular supply chains under environmental protection and revenue seeking policies of government. Comput Ind Eng 82:103–114
Hafezalkotob A (2017a) Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government. Appl Math Comput 292:294–308
Hafezalkotob A (2017b) Competition, cooperation, and coopetition of green supply chains under regulations on energy saving levels. Transp Res Part E Logist Transp Rev 97:228–250
Hafezalkotob A (2017c) Direct and indirect intervention schemas of government in the competition between green and non-green supply chains. J Clean Prod 170:753–772
Hafezalkotob A (2018) Direct and indirect intervention schemas of government in the competition between green and non-green supply chains. J Clean Prod 170:753–772
Hafezalkotob A, Makui A (2012) Supply chains competition under uncertainty concerning player’s strategies and customer choice behavior: a generalized nash game approach. Math Probl Eng. https://doi.org/10.1155/2012/421265
Hafezalkotob A, Makui A, Sadjadi SJ (2011) Strategic and tactical design of competing decentralized supply chain networks with risk-averse participants for markets with uncertain demand. Math Probl Eng. https://doi.org/10.1155/2011/325610
Hepburn C (2006) Regulation by prices, quantities, or both: a review of instrument choice. Oxf Rev Econ Policy 22:226–247
Hua G, Wang S, Cheng TE (2010) Price and lead time decisions in dual-channel supply chains. Eur J Oper Res 205:113–126
Huang W, Swaminathan JM (2009) Introduction of a second channel: Implications for pricing and profts. Eur J Oper Res 194:258–279
Javadi T, Alizadeh-Basban N, Asian S, Hafezalkotob A (2019) Pricing policies in a dual-channel supply chain considering fexible return and energy-saving regulations. Comput Ind Eng 135:655–674
Kumar N, Ruan R (2002) On strategic pricing and complementing the retail channel with a direct Internet channel. The University of Texas at Dallas, working paper, som.utdallas.edu/faculty/papers/faculty_working_papers.php. Accessed 21 Sept 2002
Kumar N, Ruan R (2006) On manufacturers complementing the traditional retail channel with a direct online channel. Quant Mark Econ 4:289–323
Littler D, Melanthiou D (2006) Consumer perceptions of risk and uncertainty and the implications for behaviour towards innovative retail services: the case of internet banking. J Retail Consum Serv 13:431–443
Ma W-M, Zhao Z, Ke H (2013) Dual-channel closed-loop supply chain with government consumption-subsidy. Eur J Oper Res 226:221–227
Madani SR, Rasti-Barzoki M (2017) Sustainable supply chain management with pricing, greening, and governmental tarifs determining strategies: a game-theoretic approach. Comput Ind Eng 105:287–298
Perry MK, Porter RH (1990) Can resale price maintenance and franchise fees correct sub-optimal levels of retail service? Int J Ind Organ 8:115–141
Pires A, Putnik G, Ávila P (2012) A survey analysis of the resource selection models in agile/virtual enterprises. J Appl Res Technol 10:416–427
Sheu J-B (2011) Bargaining framework for competitive green supply chains under governmental fnancial intervention. Transp Res Part E Logist Transp Rev 47:573–592
Spence M, Thorson J (2009) The efect of expertise on the quality of appraisal services. J Real Estate Res 15:205–215
Takahashi K, Aoi T, Hirotani D, Morikawa K (2011) Inventory control in a two-echelon dual-channel supply chain with setup of production and delivery. Int J Prod Econ 133:403–415
Tsay AA, Agrawal N (2004) Channel confict and coordination in the e-commerce age. Prod Oper Manag 13:93–110
Wang L, Zhao J (2014) Pricing and service decisions in a dual-channel supply chain with manufacturer’s direct channel service and retail service. WSEAS Trans Bus Econ 11:293–302
Wang L, Song H, Wang Y (2017) Pricing and service decisions of complementary products in a dual-channel supply chain. Comput Ind Eng 105:223–233
Wu C-H (2012) Price and service competition between new and remanufactured products in a two-echelon supply chain. Int J Prod Econ 140:496–507
Xiao T, Xu T (2013) Coordinating price and service level decisions for a supply chain with deteriorating item under vendor managed inventory. Int J Prod Econ 145:743–752
Xiao T, Yang D (2008) Price and service competition of supply chains with risk-averse retailers under demand uncertainty. Int J Prod Econ 114:187–200
Yan R (2011) Managing channel coordination in a multi-channel manufacturer–retailer supply chain. Ind Mark Manag 40:636–642
Yan R, Pei Z (2009) Retail services and frm proft in a dual-channel market. J Retail Consum Serv 16:306–314
Yao D-Q, Liu JJ (2005) Competitive pricing of mixed retail and e-tail distribution channels. Omega 33:235–247
Yin Z, Ma S (2015) Incentives to improve the service level in a random yield supply chain: the role of bonus contracts. Eur J Oper Res 244:778–791
Zhang F, Wang C (2017) Dynamic pricing strategy and coordination in a dual-channel supply chain considering service value. Appl Math Model 54:722–742
Zhao J, Wang L (2015) Pricing and retail service decisions in fuzzy uncertainty environments. Appl Math Comput 250:580–592
Zhao J, Liu W, Wei J (2013) Competition under manufacturer service and price in fuzzy environments. Knowl-Based Syst 50:121–133
Zhao J, Hou X, Guo Y, Wei J (2017) Pricing policies for complementary products in a dual-channel supply chain. Appl Math Model 49:437–451
