Channel Selection and Coordination in Dual-Channel Supply Chains

This paper investigates the influence of channel structures and channel coordination on the supplier, the retailer, and the entire supply chain n the context of two single-channel and two dual-channel supply chains. We extensively study two Pareto zone concepts: channel-adding Pareto one and contract-implementing Pareto zone. In the channel-adding Pareto zone, both the supplier and the retailer benefit from adding a new hannel to the traditional single-channel supply chain. In the contract-implementing Pareto zone, it is mutually beneficial for the supplier and the etailer to utilize the proposed contract coordination policy. The analysis suggests the preference lists of the supplier and the retailer over channel tructures with and without coordination are different, and depend on parameters like channel base demand, channel operational costs, and channel ubstitutability. 2009 New York University. Published by Elsevier Inc. All rights reserved.