Research On Double Channel Supply Chain Strategy Under The Free-Riding Effect

This paper studies the two-channel supply chain consisting of one manufacturer and one retailer in the case of one-way free-riding and two-way free-riding.Manufacturers open their own network direct sales channels and introduce service levels while having traditional retail channels.The variable,based on the two-layer optimization theory,establishes the Stackalberg game model,and gives the equilibrium pricing,optimal service level and optimal profit level of manufacturers and retailers.Based on the optimal results,the effects of the free rider coefficient on supply chain member pricing and service level decision,dual channel demand and profit are studied.Research on the one-way free ride phenomenon found that the free-riding phenomenon inhibits the enthusiasm of retailers to provide services,reduces market demand,and has a negative impact on the profits of manufacturers and retailers.Based on the negative impact of the free-riding phenomenon,a coordination mechanism model based on revenue sharing is established,and the conditions for the existence of equilibrium solutions are given.The numerical results show that under certain conditions,after the revenue sharing mechanism is adopted,the service level provided by the retailer is improved,the market demand is expanded,and the profits of manufacturers and retailers are improved.The study of the two-way free ride phenomenon found that under certain circumstances,free-riding behavior will improve the service level of traditional channels and traditional channel demand,and will increase retailer profits in the short term.However,free-riding behavior will inhibit the service level of network direct sales channels,reduce the demand for network channels and the total demand of dual channels,and have a negative impact on manufacturers' profits.Suppliers will respond to the impact of free-riding behavior by reducing the price of online channels.Therefore,in the long run,free-riding behavior has a negative impact on the dual-channel supply chain.