Volume 55, 2021Regular articles published in advance of the transition of the journal to Subscribe to Open (S2O). Free supplement sponsored by the Fonds National pour la Science Ouverte
|Page(s)||S2161 - S2179|
|Published online||02 March 2021|
Manufacturer’s channel selection in a capital-constrained supply chain under bargaining game
School of Business Administration, Hunan University, Changsha, Hunan 410082, P.R. China
* Corresponding author: email@example.com
Accepted: 24 July 2020
In the context of a capital-constrained supply chain, we examine how a direct channel added by a manufacturer influences the players’ optimal decisions and profits under bargaining game. The capital-constrained retailer adopts a type of hybrid financing scheme including bank credit and equity financing to alleviate its capital shortage. We characterize the equilibrium results under different sales channels, and examine the impacts of the bank loans ratio and bargaining power on the players’ optimal decisions. The conditions of the equilibrium channel choices are derived. We find that if the retailer’s bank loans ratio in the retail channel is beyond a certain threshold, a dual-channel structure can enhance the profits of the manufacturer and supply chain. The retailer, however, will benefit from the direct channel when its bank loans ratio in the retail channel is below a certain threshold. We further demonstrate that a dual-channel structure can reduce the degree of double marginalization of the overall supply chain. In addition, to solve the potential channel conflict, a bilateral payment mechanism is developed to achieve Pareto improvement for both players. Numerical examples are included to illustrate the major results of the paper.
Mathematics Subject Classification: 35J20 / 35J25 / 35J60
Key words: Capital constraint / channel structure / bargaining / hybrid financing
© EDP Sciences, ROADEF, SMAI 2021
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