Research On Inventory Coordination Mechanism For Dual-channel Supply Chain

With the rapid development of e-commerce and Internet technology, the Internet distribution attract more and more attention. Online sale has become a special distribution channel different from traditional indirect channels. More enterprises begin to change the traditional pattern of indirect distribution and turn to online channel, or run the two channels. The wide application and rapid development of e-commerce has also led to a new dual-channel supply chain model. However, dual-channel operates intricately. Both channel conflict and cooperation between manufacturers and retailers coexist. So how to coordinate the supply chain dual channel conflict has become an important research field in recent years.Based on this phenomenon, this paper delved into inventory coordination mechanism under the decentralized and centralized dual-channel supply chain. Firstly the research status and development trend of dual-channel supply chain inventory management were summarized. Based on the relevant literatures and previous work, the classification and characteristics of dual-channel supply chain inventory mode were extracted. Then, using system dynamics, with Vensim software, the decentralized and centralized dual-channel supply chain inventory model were established. In order to alleviate conflict and lower inventory, this paper introduced a transport coordination mechanism and a joint-stock coordination mechanisms, innovatively, and implemented them in the two modes represently. Then this paper provided three indicators, including inventory, out of stock and profits, and analyzed the operation mechanism and effect of the two coordination mechanisms. The results showed that the transport coordination mechanism is more suitable to decentralized model, which effectively solve the uneven distribution of stock and reduce the risks of retailers and manufacturers. The results also showed that joint-stock coordination mechanism is more appropriate centralized mode, which effectively solve the amplified demand caused by inventory concentrated, and share information and risk, thus increasing the overall profits and achieving win-win.From a innovative perspective of the coordination mechanism, this paper proposed and validated two practical coordination mechanism to optimize dual-channel supply chain inventory, thus finding appropriate coordination mechanisms for different inventory modes and enrich the theoretical framework of dual-channel supply chain.