Channel Competition and Coordination of a Dual-Channel Supply Chain under Interval Demand

Chunhua Tang, Erbao Cao and Zhanwen Shi ()
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Chunhua Tang: School of Management, Hunan University of Finance and Economics, Changsha 410205, China
Erbao Cao: College of Economics and Trade, Hunan University, Changsha 410079, China
Zhanwen Shi: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China

Mathematics, 2023, vol. 11, issue 12, 1-22

Abstract: Interval demand is becoming more common than ever before, since the variation bounds of uncertain demand are only required in practice, and they could be obtained through only a small amount of uncertain information. The goal of this paper is to analyze the optimal decision and coordination of a competitive dual-channel supply chain under an interval uncertain demand. For this purpose, we establish a centralized decision model and a wholesale price contract model under both interval demand and channel competition, respectively. Meanwhile, both the satisfaction degree of interval and the order relation of interval number are proposed to convert interval uncertain optimization problems to deterministic ones. Then, we derive the optimal pricing decisions, ordering quantities, and performances of partners and the supply chain system. Meanwhile, a revenue sharing contract is proposed to coordinate the competitive dual-channel supply chain under interval demand. Moreover, we found that the bounds of interval demand and channel sensitivities affect the optimal strategies and revenue sharing contract under interval uncertainty. Finally, we present a numerical analysis to illustrate the proposed results in this paper and conduct sensitivity analyses. The findings of this paper provide important references for decision makers and managers to make scientific decisions in an interval uncertain environment.

Keywords: dual-channel; interval demand; channel competition; interval program; coordination (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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