A Study of Manufacturers\' Dual-Channel Supply Chain Pricing Considering Product Quality and Return Costs

• 1、School of Management, Wuhan University of Science and Technology, Wuhan, 430065

Abstract：With the rapid development of e-commerce, the dual-channel supply chain has gradually become the mainstream trend of modern retail industry while also bringing many challenges, especially in the management of product returns. This paper takes the manufacturer\'s dual-channel supply chain as the research object, and solves the optimal pricing and optimal profit of the dual-channel supply chain members by establishing the Stackelberg game model and the inverse induction method, and analyses the numerical simulation using Matlab. The aim is to seek the influence mechanism of product quality and return cost on the pricing decision of dual-channel supply chain members under centralised and decentralised decision-making, in order to provide theoretical support and decision-making suggestions for enterprises in product return management. The study shows that the level of product quality significantly affects the amount of channel returns, which in turn has a significant impact on the pricing and profitability of dual-channel supply chain members. Under centralised decision-making, the proportion of products with quality problems in returns should be less than 0.5, and the return cost of a single product should be kept between 8 and 15 regardless of decision-making.

Keywords： Logistics engineering and management product quality return costs manufacturer-led supply chain pricing