Research On Decision-making Of Dual Channel Supply Chain Considering Service And Return

Increasing sales and reducing return rates are becoming more and more challenging for retail companies.According to data from retail analyst firm IHL Group,the return rate has caused global retailers to lose about 224.6 million pounds per year.Many retailers use services as a key strategy to meet this challenge.Many researchers also believe that increasing services not only can increase the income level of retail companies,but also can effectively reduce the return rate of retail enterprises,especially for online retail enterprises.For example,UNIQLO provides consumers with after-sales service,not only winning a steady stream of consumers,but also making the return rate lower than the retail industry average return level.Services can increase the profits of enterprises and reduce the rate of return,but it will also increase the service cost of enterprises.If the service level is not properly determined,it will be difficult for enterprises to obtain maximum profits.In order to allow retailers to make optimal service level decisions,this article focuses on the relationship between service levels,returns,and corporate profits,and gives corresponding theoretical recommendations.This paper uses Stackelberg game to establish PID and HID dual-channel supply chain model,and giving game balance and optimal strategy combination for service level and pricing decision.Trying to solve the following questions: 1.whether retailers or manufacturers provide the same impact on the supply chain pricing and profits;2.how to accurately control the impact of service investment on the supply chain,so that services can always improve the supply chain profit;3.how to solve the problem of return cost commitment so that the supply chain profits can achieve Pareto improvement.The research show that: 1.The total profits of supply chain under centralized decision-making are greater than the total profits of supply chain under decentralized decision-making;2 The service existence threshold,when the service level is less than the threshold,the service level is positively correlated with the supply chain profit;3.In a VID dual-channel structure,the total profit of the supply chain is equal when the retailer provides the service or the manufacturer provides the service.Pareto improvement can be achieved when The retailer bears the service cost and the manufacturer bears the return cost or the retailer bears the return cost and the manufacturer bears the service cost.4.In a HID dual-channel structure,when the retailer provides services,the total profits of the supply chain are greater than the total profits of the supply chain when the manufacturer provides services.When the retailer assumes the return costs,the supply chain profits can achieve Pareto improvement.