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Pricing strategy of dual-channel supply chain under joint promotion and retailer’s capital constraint

Author(s): Zhou Yong-Wei , Fan He-Hua, Bao Yan-Wen

Under the condition of joint promotion and capital constraint on retailer, a dual-channel supply chain system with one risk neutral supplier and one risk neutral retailer selling the single product was analyzed in this paper, which set up the profit model of supplier dominated dual-channel system, studied to the optimal pricing strategies of decentralized and centralized supply chain, and obtained the sufficient conditions of optimal solution to the two kinds of supply chain system. It is observed from the optimal solution that the demand uncertainty of two distribution channels, deferred-payment rate, promotion cost and the retailer’s sharing proportion of promotion cost etc, are all have certain influence relation on the pricing strategies of supply chain system. Numerical experiment has showed the effectiveness of the conclusions.

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