Optimal Decision Of Dual Channel Supply Chain Based On Service Level And Green Product

In traditional retail channel supply chain,the products are sold to consumers by multiple retailers.With the rapid development of Internet technology,increasing logistics efficiency and reliable security of online payment gradually,more and more upstream enterprises began to directly involve in the sales market through the network platform.At the same time,the increasing demand of consumers has also become a driving force on the development of dual channel supply chain design and management.On the other hand,the greenhouse effect on the effects of global warming has received wide attention.In many countries,the implement of the extended producer responsibility enterprises indicates that the manufacturer should bear responsibility for the environmental impact of their production activities.Therefore,green supply chain has becoming a more and more popular topic.In view of this,in order to meet consumer's preference for green products and increase the profits of manufacture and retailer,the optimal pricing strategy toward to a manufacturer-retailer dual channel supply chain with service level and green level is considered.Combined with the use of decision-making optimization theory,consumer utility theory and non-cooperative game theory,the effect of the products' green level and service level(including sales efforts,return strategy,etc.)on the optimal decisions of supply chain is analyzed.The dual channel supply chain coordination and Pareto improvement for supply chain members were achieved by designing appropriate coordination contracts to manage manufacturers and retailers.Firstly,the optimal decision of dual-channel green supply chain under the return service and customer value is investigated.For a class of dual channel supply chain which traditional channel selling green products and direct channel selling non-green products,how to implement the return strategy to maximize profit is discussed.It is also discussed that manufacturers whether should open direct channel,and how the customer value affects the performance of the supply chain.The boundary conditions of four situations(GG situation,GN situation,NG situation and NN situation)about the optimal decisions of retailer and manufacturer is given.It is found that MBG strategy by retailer brings higher retail unit price,MBG strategy by manufacturer brings higher direct unit price and influences the wholesale price by the net salvage value of new generation product.This paper shows that if the demand was positive,opening the direct channel always benefits the manufacturer.Besides,the threshold value of parameter about customer value affecting demands of two channels is given in this paper.Secondly,the optimal decision of dual-channel green supply chain with sales and service under uncertain demand is studied.By using the concept of ?-optimistic value and ?-pessimistic value in fuzzy theory,uncertain demand and uncertain cost of manufacturing are transformed as fuzzy variables.The manufacturer produces two kinds of products: green products and non-green products and sells green products by direct channel as well as sells non-green products by retail channel through retailer.Consider the selling prices of two kinds of products,sales effort and green level as decision variables,manufacturer and retailer maximum their expected profits in three models which including centralized model,decentralized model and collaboration model.By solving game models,this paper compares the optimal decisions under three models and implements the sensitivity analysis which helps reflecting the influence of critical parameters.The results show that if the cost coefficient increased,then sales efforts and the green level decreased.In collaborative model,under the coordination of revenue sharing contract,the more bargaining power of retailers and manufacturers have,the higher profit they obtain.The expected profit is positively related with bargaining power.The sensitivity analysis for important parameters of the system is carried out and it indicates how relevant parameters affect the performance of the supply chain.Thirdly,the optimal decision and revenue optimization of dual-channel supply chain with sales service and third-party product recycling are studied.With and without retailer's sales efforts,the optimal selling prices of the optimal pricing in forward supply chain and the recycling pricing in reverse supply chain are carried out.Centralized decision-making and decentralized decision-making model are discussed,respectively.Similar to the concept consumer demand function in dual channel market for two different channels,recycling demand functions are established based on the recycling price of the retailer and the third party.In reverse supply chain,this paper put forward the concepts of recycling demand function,consumer preferences and potential recycling share of recycling channels.It has been shown that the recycling price decisions are related to consumer preference on channel.In particular,if consumers' preference to the retailer and the third party towards recycling are equal,then the recycling prices of two channels are also equal.The optimal pricing,product demand and the profits of supply chain are comparatively analyzed under four kinds of situations by numerical result,which indicates the influence of sales effort and the decision-making model to the considered supply chain.Compared with centralized model without the sales effort of retailer,the cost of investing in sales effort makes that consumers bear the higher selling price.Furtherly,the difference value of selling prices is proportional to the sales effort.Finally,the optimal decision of dual-channel green supply chain under the influence of government cooperation and power structure of retailers is considered.There is also an environment-conscious government who intends to cooperate with the manufacturer and increase the level of the greenness of the products.A novel concept in the green literature is put forward: a dominant retailer in the green market.Then,for four scenarios(according to different power structures among the retailers and whether government cooperating with the manufacturer),the optimal solutions for the decision variables are obtained based on game theory.By sensitivity analysis,the effects of imbalanced power of the retailers in the market on the environmental protection activities of the manufacturer,pricing strategy and profits are illustrated.In addition,whether dominant role is an advantage for the retailers is also studied by analyzing the profits of retailers.The results provide interesting insights for environmental protection strategy of the manufacturer and retailers under different power structure and also for the cooperation between the government and the manufacturer under different scenarios.