Dual-Channel Supply Chain Decisions with Risk-Averse Behavior

This book discusses how manufacturers can open direct channels using digital marketing strategies, leading to conflict and competition between manufacturers and resellers. It aims to address decision-making problems in dual-channel supply chains with risk-averse channel members using the Conditional Value at Risk (CVaR) technique. It will model and analyze important issues such as channel selection, pricing, order quantity, manufacturer encroachment, greening strategy, consumer return policies, financing strategies, channel coordination, contract design, information asymmetry, and capacity constraint.

Format: Hardback
Length: 224 pages
Publication date: 18 September 2021
Publisher: World Scientific Europe Ltd

In the ever-evolving landscape of e-commerce and digitalization, a multitude of new commercial patterns and opportunities are emerging, reshaping the dynamics of the industry. Manufacturers now have the ability to establish direct channels through a diverse range of digital marketing strategies, expanding their reach beyond traditional reselling marketing channels. However, this expansion brings with it a host of challenges, including conflicts and competition between manufacturers and resellers. It raises the critical question of how to make optimal decisions for multiple players in dual-channel supply chain contexts.

In the face of changing and uncertain operational environments, businesses must navigate tougher challenges than ever before to thrive in competitive markets. This book aims to address representative decision-making problems in dual-channel supply chains with risk-averse channel members. The primary criterion for measuring risk-averse attitudes will be the Conditional Value at Risk (CVaR) technique, a recently developed risk assessment method. Drawing upon game theory, the book will model and analyze key issues such as channel selection, pricing, order quantity, manufacturer encroachment, greening strategy, consumer return policies, financing strategies, channel coordination, contract design, information asymmetry, and capacity constraints.

By providing a comprehensive understanding of operations management in dual-channel supply chain contexts with risk-averse behaviors, this book will serve as a valuable resource for readers. It will offer practical techniques and tools for researchers, while also providing valuable managerial insights for practitioners. The era of e-commerce and digitalization is presenting a unique set of opportunities and challenges, and this book aims to equip professionals with the knowledge and tools necessary to navigate these complex dynamics successfully.

ISBN-13: 9781800610392