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
|S885 - S904
|02 March 2021
The role of retailer’s app channel in a supply chain with quality decision and different power structures
School of Management, Tianjin Normal University, Tianjin 300387, P.R. China
* Corresponding author: email@example.com
Accepted: 19 February 2020
The role of retailer’s ability to add app channel in a supply chain with quality decision and different power structures is investigated in this paper. Applying a game-theoretic approach, we find that, first, under certain conditions, retailer’s ability to add app channel can induce the manufacturer to adjust the wholesale price and product quality in the opposite direction with the manufacturer being the leader. Second, for the manufacturer and the retailer, retailer’s ability to add app channel can result in two distinct profit situations regardless of the power structure of supply chain: win–win and lose–win. Moreover, in a retailer-led supply chain, adding app channel will make the whole supply chain better off when the return cost is relatively low or high, while make the whole supply chain worse off when the return cost is moderate. Third, we identify a region of the return cost under which the manufacturer, the retailer, the supply chain and consumers can gain from adding app channel, leading to a Pareto improvement.
Mathematics Subject Classification: 90B50 / 91A80
Key words: App channel / power structure / supply chain / game theory
© EDP Sciences, ROADEF, SMAI 2021
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