Effectiveness of exclusive territories by competing manufacturers managing dual‐channel supply chains

Kenji Matsui and Yushi Tsunoda

Managerial and Decision Economics, 2022, vol. 43, issue 4, 1015-1024

Abstract: This paper investigates a supply chain management problem concerning whether a manufacturer should apply exclusive territories of sales when the manufacturer can distribute products through dual‐channel supply chains. We first demonstrate that even when a manufacturer cannot use the direct channel, the adoption of the exclusive territories can be optimal. One noteworthy result is that when a manufacturer can use dual channels, the adoption of exclusive territories can boost manufacturer's profit even if the products are more differentiated between manufactures than when the manufacturer can use only a single retail channel. These results provide useful insights for manufacturers.

Date: 2022
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https://doi.org/10.1002/mde.3435

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:4:p:1015-1024

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