The Research On The Impact Of Quick Response In Dual Channel Supply Chain

With the rapid development of e-commerce and logistics,it has become a trend to open up direct sales channel.Companies applied the dual-channel sales network to improve the product penetration and expand the market share.In addition,with the acceleration of product renewal,and the increase of demand uncertainty,the risk of inventory overage or shortage will be higher and higher in the dual-channel supply chain.Quick response aims to respond to the demand changes better,which has been used by many enterprises to achieve objectives of rapid procurement and supply.Based on this,this paper studies the optimal pricing and inventory decisions of the manufacturer and the retailer in a dual-channel supply chain under quick response,and analyzes the impact of quick response on the equilibrium decisions and profits of supply chain members.This paper researches a dual-channel supply chain consisting of a single manufacturer controlling the direct channel and a single retailer controlling the retail channel.With demand uncertainty,the retailer can replenish the products after the demand is realized through quick response of the manufacturer.The pricing strategy of the manufacturer,the pricing and inventory strategy of the retailer and the profits of each channel are analyzed emphatically under the condition of whether there exists quick response or not.On this basis,we extend the quick response to the manufacturer considering the inventory limitation.The manufacturer can reproduce for the direct channel and the retailer's order under quick response and we add the decision of the manufacturer's direct inventory.Finally,we study the optimal pricing and inventory strategies of the manufacturer and the retailer based on the strategic consumers.In addition,we particularly analyze the impacts of key parameters such as market share,demand uncertainty,quick response order fee on the decisions and profits of the supply chain members.The main conclusions of this paper include:(1)When the quick response acts on the retailer,the wholesale price and selling prices increase and the retailer's initial order quantity before the start of selling season decreases in dual channel supply chain.We found that quick response is beneficial to the manufacturer.For the retailer,quick response is beneficial or harmful depending on various parameters.When the retailer's market share is high,demand uncertainty is moderate and quick response order cost is small,retailers will benefit from quick response.Quick response can achieve Pareto improvement in a dual channel supply chain,which promotes the implementation of this mechanism in the supply chain smoothly.(2)When the quick response acts on the manufacturer and the retailer,the wholesale price and selling prices increase and the retailer's initial order quantity decreases.The manufacturer's direct inventory decreases when the retailer's market share is small and increases when the retailer's market share is big.The manufacturer still benefits from quick response,but the range of parameters which make the quick response good for the retailer are reduced.In other word,the Pareto improvement interval is reduced.The manufacturer should offer better incentives to enable quick response to be implemented in a dual-channel supply chain.(3)When the quick response acts on the manufacturer and the retailer with strategic consumers,the implementation of quick response makes the selling prices of the manufacturer and the retailer increase,which means quick response can mitigate the adverse effects of strategic consumers behavior.The manufacturer's direct inventory and the retailer's order quantity decrease,and quick response has a greater impact on the retailer than the manufacturer.Under certain conditions,quick response is beneficial to both the manufacturer and the retailer and achieve the win-win situation.