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Dual-channel supply chain with manufacturer competition. (Chinese. English summary) Zbl 1399.90007
Summary: By using Stackelberg game model, this paper investigates how the introduction of online direct channel by the leading manufacturer influences the decisions of chain members in a supply chain consisting of two competing manufacturers and a retailer. It is shown that the leading manufacturer should consider the situation of competing manufacturers when introducing the online direct channel. Only when facing strong competitors, does the leading manufacturer need to introduce the online direct channel. The competing manufacturer’s profit may be enhanced due to the introduction of online direct channel by the leading manufacturer, mainly because of the alleviation of the double marginalization problem in the online direct channel. In addition, the introduction of online direct channel will hurt the retailer’s profit.

90B05 Inventory, storage, reservoirs
91A80 Applications of game theory
91A12 Cooperative games
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