This report analyzes a dual-channel supply chain, a common strategy where manufacturers sell products through both traditional retail and direct online channels. The study focuses on a two-echelon supply chain (manufacturer and retailer) facing stochastic demand that depends on selling prices and online delivery lead times. The research develops mathematical models to maximize profit, considering centralized and decentralized systems, and employs a distribution-free approach for scenarios with unknown demand distributions. It explores the effects of delivery lead time and customer channel preferences. The report also examines supply chain coordination using a hybrid all-unit quantity discount with a franchise fee contract, and the generalized asymmetric Nash bargaining for profit distribution. A numerical example illustrates the theoretical findings. The paper investigates managerial questions such as the effect of delivery lead time on prices, the impact of consumer channel preference, and methods for coordinating decentralized channels. The study extends existing literature by incorporating stochastic demand and delivery time dependence, offering insights into optimal pricing, order quantities, and lead times within a dual-channel supply chain context.
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