Decision-making for substitutable products in a retailer dominant channel involving a third-party logistics provider

This paper investigates pricing and ordering decisions in a supply chain comprised of two competing manufacturers, dominant retailer, third-party logistics (3PL) provider. Product distribution functions may be implemented by the 3PL provider manufacturers. The advantages outsourcing lie lower cost professional service, which affect decision-making members. adopts novel approach to outsourcing, it is regarded as an endogenous variable when members make decisions. We obtain equilibrium with aid Stackelberg game. Furthermore, we investigate effects various parameters, such market size, price sensitivity, product differentiation, production costs on decisions, thereby gaining valuable managerial insights. Finally, present numerical analyses respect above parameters order examine our theoretical results study their channel performance.