The choices of channel structures and information strategies in a supply chain
This study considers the choices of channel structures and information strategies in a supply chain with demand uncertainty. The results show the following: (1)The decentralized channel structure dominates the centralized channel structure when the information strategy is given. (2)Information shari...
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2022-09-01
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| Series: | Journal of Management Science and Engineering |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2096232022000154 |
| _version_ | 1817999170068283392 |
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| author | Zhibing Lin |
| author_facet | Zhibing Lin |
| author_sort | Zhibing Lin |
| collection | DOAJ |
| description | This study considers the choices of channel structures and information strategies in a supply chain with demand uncertainty. The results show the following: (1)The decentralized channel structure dominates the centralized channel structure when the information strategy is given. (2)Information sharing by the downstream rival is always beneficial to the vertically integrated producer but is not necessarily detrimental to itself. In particular, information sharing increases the downstream rival’s profit in the centralized channel structure when the demand signal is relatively accurate. (3)The vertically integrated producer always benefits from the increase in forecast accuracy and the downstream rival may be worse off in some situations, which provides a theoretical ground for the “accuracy trap.” In addition, the discussions of the wholesale price commitment and the uniform pricing contracts show that the wholesale price contracts can influence the information sharing conditions of the downstream rival and the effects of strategic decentralization, eventually influencing the equilibrium strategies of channel members. |
| first_indexed | 2024-04-14T03:04:38Z |
| format | Article |
| id | doaj.art-30da7eee6d294cfe954b0f44843dfb59 |
| institution | Directory Open Access Journal |
| issn | 2096-2320 |
| language | English |
| last_indexed | 2024-04-14T03:04:38Z |
| publishDate | 2022-09-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Management Science and Engineering |
| spelling | doaj.art-30da7eee6d294cfe954b0f44843dfb592022-12-22T02:15:48ZengKeAi Communications Co., Ltd.Journal of Management Science and Engineering2096-23202022-09-0173405422The choices of channel structures and information strategies in a supply chainZhibing Lin0School of Economics & Management, Fuzhou University, Fuzhou 350116, ChinaThis study considers the choices of channel structures and information strategies in a supply chain with demand uncertainty. The results show the following: (1)The decentralized channel structure dominates the centralized channel structure when the information strategy is given. (2)Information sharing by the downstream rival is always beneficial to the vertically integrated producer but is not necessarily detrimental to itself. In particular, information sharing increases the downstream rival’s profit in the centralized channel structure when the demand signal is relatively accurate. (3)The vertically integrated producer always benefits from the increase in forecast accuracy and the downstream rival may be worse off in some situations, which provides a theoretical ground for the “accuracy trap.” In addition, the discussions of the wholesale price commitment and the uniform pricing contracts show that the wholesale price contracts can influence the information sharing conditions of the downstream rival and the effects of strategic decentralization, eventually influencing the equilibrium strategies of channel members.http://www.sciencedirect.com/science/article/pii/S2096232022000154Supply chain managementInformation sharingVertically integrated producerDemand signalStrategic decentralization |
| spellingShingle | Zhibing Lin The choices of channel structures and information strategies in a supply chain Journal of Management Science and Engineering Supply chain management Information sharing Vertically integrated producer Demand signal Strategic decentralization |
| title | The choices of channel structures and information strategies in a supply chain |
| title_full | The choices of channel structures and information strategies in a supply chain |
| title_fullStr | The choices of channel structures and information strategies in a supply chain |
| title_full_unstemmed | The choices of channel structures and information strategies in a supply chain |
| title_short | The choices of channel structures and information strategies in a supply chain |
| title_sort | choices of channel structures and information strategies in a supply chain |
| topic | Supply chain management Information sharing Vertically integrated producer Demand signal Strategic decentralization |
| url | http://www.sciencedirect.com/science/article/pii/S2096232022000154 |
| work_keys_str_mv | AT zhibinglin thechoicesofchannelstructuresandinformationstrategiesinasupplychain AT zhibinglin choicesofchannelstructuresandinformationstrategiesinasupplychain |