Structure Selection And Coordination In Dual-Channel Supply Chains

The market competition in 21 st century is the competition between supply chains, and the competition between supply chains more and more depends on the competition of distribution channels. So-called channels generally refer to canals and ditches, the channels of the flow. In this paper,it means selling line, the circulation line of commodities. Supplier as an important part of the supply chains how to choose the sales channel of supply chains in order to expand market share,increase their own profits and the benefits of consumers?With suppliers who manufacture the alternative commodities in the dual-channel supply chains as the object of the research, this paper builds two different types of sales model: one is the exclusive shop model which is made up of two competing suppliers and their respective retailers; the other is the common retailer model which is made up of two competing suppliers and the common retailer. This paper investigates the influence of suppliers’ profits who manufacture the alternative commodities and the consumer utility, in the situations that the suppliers choose the common retailer or the excusive shop to sell their commodities. By comparing suppliers’ profits and consumer utility, the analysis suggests such a conclusion: in general, suppliers’ profits and consumer utility in the exclusive shop model will be higher than the common retailer model; But under certain conditions, suppliers’ profits and consumer utility in the common retailer model are better than exclusive shop model, and conditions depend on parameters like channel basic demand, channel cost and channel substitutability.In order to increase their own profits and the entire utility of supply chain, suppliers and retailers will cooperate with contracts. This paper mainly studies in the situation that suppliers and retailers cooperate with the revenue-sharing contract how to determine the range of the revenue sharing rates to optimize every member’s and the whole system’s interests; what parameters are relate to the revenue sharing rates. Results indicate that: in the case of revenue-sharing contract, both suppliers and retailers’ profits are increased. But only the proportions of revenue sharing rates are in some certain ranges can both suppliers and retailers cooperate with each other. And the revenue sharing rates depend on parameters like channel basic demand, channel cost and channel substitutability.