operation strategies of retailer-leading dual channel supply chain concerning quality

• 1、College of Management and Economics,Tianjing University,Tianjing 300072

Abstract：With the rapid expansion of the scale of domestic e-commerce, more and more manufacturers choose to open up online sales channels, trying to increase the self-channel to weaken the control of large retailers. In this context, it becomes important to concern how each member of the supply chain makes decisions on channel product pricing and non-price characteristics such as product quality. This paper concerns on the effect on profits and strategies of the supply chain members if the supplier opens up online channels, and the paper also pays attention to if there is a contract which can help coordinate supply chain. By establishing the supply chain model of a single retailer and a single manufacturer, we obtain the optimal decisions of supply chain members. Then through numerical methods we compare optimal decisions and the optimal profits of the supply chain members under different situations, through the analysis we find that the direct marketing channels of the manufacturer do not necessarily result in lower profit of the retailer, meanwhile, the product quality can also be improved. In addition, the establishment of the cost-sharing coordination mechanism can make both members achieve a win-win situation. This paper also proves the effectiveness of the coordination mechanism through numerical methods.(10 Points, Times New Roman)

Keywords： dual-channel supply chain pricing product quality supply chain coordination