Price, delivery time, and retail service sensitive dual-channel supply chain

Document Type : Article


1 Department of Mathematics, The University of Burdwan, Burdwan - 713104, India

2 Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnologico de Monterrey. E. Garza Sada 2501 Sur, C. P. 64849, Monterrey, Nuevo Leon, Mexico

3 Department of Mathematics, Jadavpur University, Kolkata - 700032, India


This study deals with a dual channel supply chain where selling price of each player, delivery
time for direct channel and retail service dependent demand structures are considered for
manufacturer and retailer. In the direct channel, the manufacturer sells the products directly
to the customers with a maximum mentioned delivery time. The delivery time of the products
is adjustable according to customers’ demand with extra delivery charge. In the retail channel,
the customers are extra benefited by the retail service and direct connection with the products.
Selling price for direct market is considered as lower than the retail market selling price. The
behavior of the model under integrated system is analyzed. In the decentralized structure,
vertical Nash and manufacturer Stackelberg models are also discussed. The sensitivity of the
key parameters is examined to test feasibility of the model. Finally, a numerical example with
graphical illustrations is provided to investigate the proposed model.


Main Subjects

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