This paper studies a supply chain with manufacturer encroachment and different power structures where product quality is an endogenous decision. We investigate the effects of encroachment and power structure on quality and profits for chain members. Employing a game-theoretic approach, we find that, first, in a manufacturer-led supply chain, encroachment makes both manufacturer and retailer better off when the quality investment efficiency is relatively high. And, the manufacturer’s profit exhibits nonmonotonicity with respect to the extent of consumers acceptance on the direct channel in a retailer-led setting. Second, our result shows that the pure equilibrium outcomes are driven by the quality investment efficiency and the extent of consumers’ acceptance on the direct channel. An interesting result is that, for the manufacturer, establishing encroachment channel and occupying the leader position simultaneously are always not the optimal choice. Additionally, the options of encroaching and striving for leader position can lead to lose-win, win-win, and win-lose situations for the manufacturer and the retailer. Finally, a prisoner’s dilemma may occur with a low quality investment efficiency, a moderately fixed encroachment cost and a high extent of consumers’ acceptance on the direct channel when a fixed encroachment cost is considered.
Mots-clés : Channel encroachment, power structure, supply chain, game theory
@article{RO_2020__54_3_693_0,
author = {Xue, Musen and Zhang, Jianxiong},
title = {Supply chain encroachment with quality decision and different power structures},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {693--718},
publisher = {EDP-Sciences},
volume = {54},
number = {3},
year = {2020},
doi = {10.1051/ro/2019027},
mrnumber = {4074003},
zbl = {1437.90025},
language = {en},
url = {http://archive.numdam.org/articles/10.1051/ro/2019027/}
}
TY - JOUR AU - Xue, Musen AU - Zhang, Jianxiong TI - Supply chain encroachment with quality decision and different power structures JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2020 SP - 693 EP - 718 VL - 54 IS - 3 PB - EDP-Sciences UR - http://archive.numdam.org/articles/10.1051/ro/2019027/ DO - 10.1051/ro/2019027 LA - en ID - RO_2020__54_3_693_0 ER -
%0 Journal Article %A Xue, Musen %A Zhang, Jianxiong %T Supply chain encroachment with quality decision and different power structures %J RAIRO - Operations Research - Recherche Opérationnelle %D 2020 %P 693-718 %V 54 %N 3 %I EDP-Sciences %U http://archive.numdam.org/articles/10.1051/ro/2019027/ %R 10.1051/ro/2019027 %G en %F RO_2020__54_3_693_0
Xue, Musen; Zhang, Jianxiong. Supply chain encroachment with quality decision and different power structures. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 3, pp. 693-718. doi : 10.1051/ro/2019027. http://archive.numdam.org/articles/10.1051/ro/2019027/
[1] , and , The bright side of supplier encroachment. Market. Sci. 26 (2007) 651–659. | DOI
[2] , and , Agency selling or reselling? Channel structures in electronic retailing. Manage. Sci. 62 (2015) 2259–2280. | DOI
[3] , and , Free riding in a multi-channel supply chain. Naval Res. Logist. 56 (2009) 745–765. | DOI | MR | Zbl
[4] , Design for the environment: A quality-based model for green product development. Manage. Sci. 47 (2001) 250–263. | DOI
[5] , and , Direct marketing, indirect profits: A strategic analysis of dual-channel supply-chain design. Manage. Sci. 49 (2003) 1–20. | DOI | Zbl
[6] , , and , Boiling frogs: Pricing strategies for a manufacturer adding a direct channel that competes with the traditional channel. Prod. Oper. Manage. 15 (2006) 40–56. | DOI
[7] , and , Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes. Int. J. Prod. Econ. 117 (2009) 80–96. | DOI
[8] , Channel selection and coordination in dual-channel supply chains. J. Retail. 86 (2010) 22–36. | DOI
[9] , and , Implementing coordination contracts in a manufacturer stackelberg dual-channel supply chain. Omega- Int. J. Manage. Sci. 40 (2012) 571–583. | DOI
[10] , and , The impact of power structure on the retail service supply chain with an O2O mixed channel. J. Oper. Res. Soc. 67 (2016) 294–301. | DOI
[11] , , and , Price and quality decisions in dual-channel supply chains. Eur. J. Oper. Res. 259 (2017) 935–948. | DOI | MR
[12] , , and , A supply chain model with direct and retail channels. Eur. J. Oper. Res. 187 (2008) 691–718. | DOI | MR | Zbl
[13] , , and , A supply-chain production control problem via genetic algorithm. In: Proc. of International Conference of Operation Research and Development-V (ICORD-V). International Federation of Operational Research Society, India (2005) 279–286.
[14] , and , A two warehouse supply-chain model under possibility/necessity/credibility measures. Math. Comput. Model. 46 (2007) 398–409. | DOI | Zbl
[15] and , A volume flexible fuzzy production inventory model under interactive and simulation approach. Int. J. Math. Oper. Res. 4 (2012) 422–438. | DOI | MR
[16] and , Fuzzy stochastic inequality and equality possibility constraints and their application in a production-inventory model via optimal control method. J. Comput. Sci. 4 (2013) 360–369. | DOI
[17] , An integrated supply chain model under fuzzy chance constraints. Adv. Model. Optim. 16 (2014) 113–132.
[18] , and , Cartelization or Cost-sharing? Comparison of cooperation modes in a green supply chain. J. Clean. Prod. 156 (2017) 159–173. | DOI
[19] and , Power measurement in the distribution channel. J. Market. Res. 9 (1972) 47–52. | DOI
[20] , Nike earnings: What to watch. Wall Street J. (2014). Available at: http://stream.wsj.com/story/corporate-intelligence/SS-2-60962/SS-2-696191/.
[21] and , Introduction of a second channel: Implications for pricing and profits. Eur. J. Oper. Res. 194 (2009) 258–279. | DOI | Zbl
[22] , and , Quality in supply chain encroachment. Manuf. Serv. Oper. Manage. 18 (2016) 280–298. | DOI
[23] and , A bargaining theory of distribution channels. J. Market. Res. 40 (2003) 80–100. | DOI
[24] and , Store within a store. J. Market. Res. 47 (2010) 748–763. | DOI
[25] and , Information provision in a vertically differentiated competitive marketplace. Market. Sci. 29 (2010) 122–138. | DOI
[26] and , Research note-the benefits of personalized pricing in a channel. Market. Sci. 25 (2006) 97–105. | DOI
[27] and , Pricing and capacity rationing with customer disappointment aversion. Prod. Oper. Manage. 22 (2013) 1269–1286. | DOI
[28] , and , Supplier encroachment under asymmetric information. Manage. Sci. 60 (2014) 449–462. | DOI
[29] , and , Supplier encroachment as an enhancement or a hindrance to nonlinear pricing. Prod. Oper. Manage. 24 (2015) 89–109. | DOI
[30] , and , The impact of consumer returns on the multichannel sales strategies of manufacturers. Prod. Oper. Manage. 27 (2017) 323–349. | DOI
[31] , and , The strategic role of third-party marketplaces in retailing. Prod. Oper. Manage. 23 (2014) 1937–1949. | DOI
[32] , , and , Two layers green supply chain imperfect production inventory model under bi-level credit period. Tékhne 15 (2017) 124–142. | DOI
[33] , and , Two layers supply chain in an imperfect production inventory model with two storage facilities under reliability consideration. J. Ind. Prod. Eng. 35 (2018) 57–73.
[34] , , and , An EPQ model with promotional demand in random planning horizon: Population varying genetic algorithm approach. J. Intel. Manuf. 29 (2018) 1515–1531. | DOI
[35] , and , Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice. Int. J. Prod. Econ. 207 (2019) 19–33. | DOI
[36] , and , A supply chain model for imperfect production system with stochastic lead time demand. J. Manage. Anal. 5 (2018) 309–333.
[37] , and , Consumer heterogeneity, product quality, and distribution channels. Manage. Sci. 59 (2013) 1162–1176. | DOI
[38] , and , Impact of power structure on supply chains with uncertain demand. Prod. Oper. Manage. 22 (2013) 1232–1249. | DOI
[39] and , Add-on pricing by asymmetric firms. Manage. Sci. 59 (2013) 899–917. | DOI
[40] , and , On the impact of uncertain cost reduction when selling to strategic customers. Manage. Sci. 63 (2016) 843–860. | DOI
[41] and , Channel conflict and coordination in the e-commerce age. Prod. Oper. Manage. 13 (2004) 93–110. | DOI
[42] and , Modeling conflict and coordination in multichannel distribution systems: A review. In: Handbook of Quantitative Supply Chain Analysis. Springer, Boston, MA (2004) 557–606. | DOI | Zbl
[43] , and , Coordinating the supplier-retailer supply chain under noise effect with bundling and inventory strategies. J. Ind. Manage. Optim. 15 (2019) 1701–1727. | DOI | MR
[44] , Optimal price and product quality decisions in a distribution channel. Manage. Sci. 55 (2009) 1347–1352. | DOI | Zbl
[45] , and , Supply chain performance and consumer surplus under alternative structures of channel dominance. Eur. J. Oper. Res. 239 (2014) 130–145. | DOI | MR | Zbl
[46] , and , Strategic supply chain structure design for a proprietary component manufacturer. Prod. Oper. Manage. 19 (2010) 371–389. | DOI
[47] and , Impacts of heterogeneous environment awareness and power structure on green supply chain. RAIRO: OR 52 (2018) 143–157. | DOI | Numdam | MR | Zbl
[48] , and , Strategic waiting for consumer-generated quality information: Dynamic pricing of new experience goods. Manage. Sci. 62 (2016) 410–435. | DOI
[49] , , , and , Clicks versus Bricks: The role of durability in marketing channel strategy of durable goods manufacturers. Eur. J. Oper. Res. 265 (2018) 909–918. | DOI | MR | Zbl
[50] , and , Supplier encroachment under nonlinear pricing with imperfect substitutes: Bargaining power versus revenue-sharing. Eur. J. Oper. Res. 267 (2018) 1089–1101. | DOI | MR | Zbl
[51] and , Managing clearance sales in the presence of strategic customers. Prod. Oper. Manage. 17 (2008) 416–431. | DOI
[52] , and , Pricing decisions in a dual channels system with different power structures. Econ. Model. 29 (2012) 523–533. | DOI
[53] , and , Consumer environmental awareness and channel coordination with two substitutable products. Eur. J. Oper. Res. 241 (2015) 63–73. | DOI | MR
[54] and , Two-period pricing strategies in a two-echelon supply chain with conspicuous consumption. RAIRO: OR 53 (2019) 667–685. | DOI | Numdam | MR | Zbl
Cité par Sources :
