Service Cooperation Policy in a Dual-Channel Supply Chain under Service Differentiation


A service collaboration decision problem in a dual-channel supply chain is studied with the service level and the customer’s acceptance of the Internet channel is taken into consideration. Then the Stackelberg decentralized decision model and the centralized decision model are developed for two settings that the retailer provides the same service level in both channels or not. The conclusion implies that the system profits, the manufacturer’s optimal profit and retailer’s optimal profit are always higher when different services are provided than the same service, and the optimal service level for the direct channel is a little lower than that for the traditional channel under decentralized mode.

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Chen, J. and Yang, Y. (2014) Service Cooperation Policy in a Dual-Channel Supply Chain under Service Differentiation. American Journal of Industrial and Business Management, 4, 284-294. doi: 10.4236/ajibm.2014.46036.

*Corresponding author.

Conflicts of Interest

The authors declare no conflicts of interest.


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