Dual-Channel Supply Chain Network Equilibrium Model with Consumer-Driven

Authors

Jun Ma, Department of Mechanical and Manufacturing Engineering, University of Calgary, Calgary, AB, T2N 1N4, Canada; School of Management, Shenyang University of Technology, Shenyang, LN, 110870, China
Ding Zhang, School of Business, State University of New York, Oswego, NY, 13126, USA
Ding Feng, School of Mechanical Engineering, Yangtze University, Jingzhou, HB, 434020, China
Yiliu Tu, Department of Mechanical and Manufacturing Engineering, University of Calgary, Calgary, AB, T2N 1N4, Canada

Abstract

In this paper, we study designing and managing effective dual-channel supply chain network equilibrium model to optimize the profit of each node in dual-channel supply chain network and satisfy seamlessly customer demand. The customer demand in each channel is driven by the heterogeneous consumer characteristic attributes. In our proposed model, Multinomial Logit (MNL) function is used to make a purchase decision for customers considering selling price, operation time and retail services. Furthermore, the Variational Inequality is used to express the equilibrium solution in dual-channel supply chain network. A numerical example in dual-channel supply chain network is presented to show the MNL function can be a good replacement for the demand function when customers are heterogeneous and the proposed model can be helpful to avoid time trap.

Recommended Citation

Ma, Jun; Zhang, Ding; Feng, Ding; and Tu, Yiliu, "Dual-Channel Supply Chain Network Equilibrium Model with Consumer-Driven" (2018). WHICEB 2018 Proceedings. 42.
https://aisel.aisnet.org/whiceb2018/42