WSEAS Transactions on Mathematics
Print ISSN: 1109-2769, E-ISSN: 2224-2880
Volume 15, 2016
Dual-Channel Supply Chain Coordination Strategy with Dynamic Cooperative Advertising
Authors: ,
Abstract: With the rapid development of electronic commerce, many manufacturers choose to establish dual-channel supply chains. To promote sales, the manufacturer in a dual-channel supply chain usually invests in national advertising and provides support to the retailer who promotes the goodwill through local advertisement. In our research, we use a Stackelberg differential game theoretic model to show that the manufacturer who establishes an e-channel can adopt the cooperative advertising strategy with the retailer, so that the profits of both the manufacturer and the retailer will increase. We analyze the advantages brought by the e-channel which is established by the manufacturer. Further, a revenue sharing contract is given to coordinate the dual-channel supply chain.
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Keywords: Electronic Commerce, Dual-channel Supply Chain, Cooperative Advertising, Stackelberg Differential Game, Nerlove-Arrow Model, Revenue Sharing Contract
Pages: 196-205
WSEAS Transactions on Mathematics, ISSN / E-ISSN: 1109-2769 / 2224-2880, Volume 15, 2016, Art. #19