Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return
The interests of upstream, midstream, downstream companies and consumers in the supply chain are jointly affected by service levels and returns. Improving service levels can increase market demand and improve market position, as well as reduce return rates. But the increase in service level will bri...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-12-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/15/23/9237 |
| _version_ | 1797463195284144128 |
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| author | Xuelong Zhang Huili Xu Chenhui Zhang Shuang Xiao Ying Zhang |
| author_facet | Xuelong Zhang Huili Xu Chenhui Zhang Shuang Xiao Ying Zhang |
| author_sort | Xuelong Zhang |
| collection | DOAJ |
| description | The interests of upstream, midstream, downstream companies and consumers in the supply chain are jointly affected by service levels and returns. Improving service levels can increase market demand and improve market position, as well as reduce return rates. But the increase in service level will bring an increase in service cost. How to balance the service cost and return cost through pricing decision, so that the profit of supply chain members can be improved, is the problem studied in this paper. In this paper, we consider the effect of service level of network channel on consumers’ return behavior in the context of manufacturer’s dual-channel supply chain when dual channels provide services at the same time, and discuss the effect of service level and return rate on pricing decision of dual-channel supply chain. It was found that return behavior can stimulate manufacturers to improve service levels and increase overall supply chain profits. The higher the return rate in the network channel, the greater the benefits from improved service levels by the manufacturer and the less detrimental to retailers’ returns. This study enriches the research on pricing decisions in dual-channel supply chains, increases the motivation of merchants to improve service levels, and has some guiding implications for supply chain members to develop price and service strategies. |
| first_indexed | 2024-03-09T17:47:14Z |
| format | Article |
| id | doaj.art-2da17fb943d641ef9941fc7a55d1c785 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-09T17:47:14Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-2da17fb943d641ef9941fc7a55d1c7852023-11-24T10:57:32ZengMDPI AGEnergies1996-10732022-12-011523923710.3390/en15239237Pricing Decision Models of the Dual Channel Supply Chain with Service Level and ReturnXuelong Zhang0Huili Xu1Chenhui Zhang2Shuang Xiao3Ying Zhang4School of Business, Guilin University of Electronic Technology, Guilin 541004, ChinaSchool of Business, Guilin University of Electronic Technology, Guilin 541004, ChinaSchool of Business, Guilin University of Electronic Technology, Guilin 541004, ChinaSchool of Business, Guilin University of Electronic Technology, Guilin 541004, ChinaSchool of Business, Guilin University of Electronic Technology, Guilin 541004, ChinaThe interests of upstream, midstream, downstream companies and consumers in the supply chain are jointly affected by service levels and returns. Improving service levels can increase market demand and improve market position, as well as reduce return rates. But the increase in service level will bring an increase in service cost. How to balance the service cost and return cost through pricing decision, so that the profit of supply chain members can be improved, is the problem studied in this paper. In this paper, we consider the effect of service level of network channel on consumers’ return behavior in the context of manufacturer’s dual-channel supply chain when dual channels provide services at the same time, and discuss the effect of service level and return rate on pricing decision of dual-channel supply chain. It was found that return behavior can stimulate manufacturers to improve service levels and increase overall supply chain profits. The higher the return rate in the network channel, the greater the benefits from improved service levels by the manufacturer and the less detrimental to retailers’ returns. This study enriches the research on pricing decisions in dual-channel supply chains, increases the motivation of merchants to improve service levels, and has some guiding implications for supply chain members to develop price and service strategies.https://www.mdpi.com/1996-1073/15/23/9237dual-channel supply chainreturnservice levelprice strategy |
| spellingShingle | Xuelong Zhang Huili Xu Chenhui Zhang Shuang Xiao Ying Zhang Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return Energies dual-channel supply chain return service level price strategy |
| title | Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return |
| title_full | Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return |
| title_fullStr | Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return |
| title_full_unstemmed | Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return |
| title_short | Pricing Decision Models of the Dual Channel Supply Chain with Service Level and Return |
| title_sort | pricing decision models of the dual channel supply chain with service level and return |
| topic | dual-channel supply chain return service level price strategy |
| url | https://www.mdpi.com/1996-1073/15/23/9237 |
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