Channel Structure Design and Selection Strategy in Dual-Channel Supply Chain

Abstract

Abstract:

The four structures of dual-channel supply chain are designed based on two integrated and decentralized structures of single-channel supply chain. The consumer's preference rate for channels is defined by considering initial demand of physical channel and online channel. The selection strategy of supply chain channel structures are studied based on consumer's preference rate for channels, the manufacturer and the retailer being as decision-maker respectively. The impact of channel preference relative rate's variation on selection preference of channel structure and the whole profits for six channel structures of supply chain is further analyzed. It is found that no matter how the relative rate of channel preference changes, the supply chain of vertically integrated dual-channel is the best choice for the manufacturer, the supply chain of horizontally integrated dual-channel is the optimal choice for the physical retailer and higher overall dual-channel supply chain profits will be obtained by the channel structures in which unilateral or bilateral "double marginalization effect" is eliminated. The results are meaningful and practical to channel structure design and selection for different decision-makers in dual-channel supply chain.

Key words: dual-channel supply chain, channel structure design, channel selection strategy, consumers'preference rate for channels

Zhou Baogang. Channel Structure Design and Selection Strategy in Dual-Channel Supply Chain[J]. , 2019, 31(6): 247-257.

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