DUOPOLY MARKET COMPETITION OF PRICING AND SERVICE POLICIES UNDER A DUAL-SALE CHANNEL

Authors

  • Yu-Chung Tsao Department of Industrial Management, Artificial Intelligence for Operations Management Research Center, National Taiwan University of Science and Technology
  • Vu Thuy Linh Department of Industrial Management, Artificial Intelligence for Operations Management Research Center, National Taiwan University of Science and Technology
  • Tsung-Hui Chen Department of marketing and distribution management, National Pingtung University

DOI:

https://doi.org/10.23055/ijietap.2022.29.2.7693

Keywords:

supply chain management, inventory

Abstract

The Internet provides lower company operating costs, increased product sales, understanding of customer preferences, and closeness to customers. Direct channels break barriers between suppliers and customers and change customer consumption patterns. However, they can also lead to competition and conflicts between upstream and downstream members of the supply chain. This study contributes to supply chain management research by investigating the joint impact of pricing policy, service-level investment, and dual-channel supply chain competition in a duopoly manufacturer channel. By simulating conditions similar to the actual market, the numerical experiment conducted in this study yielded several insights into the management of the dual-channel architecture. A targeted rebate mechanism is used to eliminate channel conflicts and persuade injured parties to accept the introduction of an online channel.

Author Biographies

Yu-Chung Tsao, Department of Industrial Management, Artificial Intelligence for Operations Management Research Center, National Taiwan University of Science and Technology

Chair Professor & Director of Artificial Intelligence for Operations Management Research Center of National Taiwan University of Science and Technology

Vu Thuy Linh, Department of Industrial Management, Artificial Intelligence for Operations Management Research Center, National Taiwan University of Science and Technology

Postdoctoral Research Associate, Artificial Intelligence for Operations Management Research Center, National Taiwan University of Science and Technology

Tsung-Hui Chen, Department of marketing and distribution management, National Pingtung University

Tsung-Hui Chen, Ph.D.ProfessorDepartment of Marketing and Distribution Management
National Pingtung University

Published

2022-04-20

How to Cite

Tsao, Y.-C., Linh, V. T., & Chen, T.-H. (2022). DUOPOLY MARKET COMPETITION OF PRICING AND SERVICE POLICIES UNDER A DUAL-SALE CHANNEL. International Journal of Industrial Engineering: Theory, Applications and Practice, 29(2). https://doi.org/10.23055/ijietap.2022.29.2.7693

Issue

Section

Supply Chain Management

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