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Pricing Strategy in Dual-Channel Supply Chain with Retail Services and Product Substitution
 
 
 
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Title Pricing Strategy in Dual-Channel Supply Chain with Retail Services and Product Substitution
Edition
Call Number 2016/41
ISBN/ISSN
Author(s) Adhiana, Tigar Putri
Subject(s) Optimization
Dual-channel Supply Chain
Classification 658.7 Adh p
Series Title
GMD Tesis
Language Inggris
Publisher Departemen Teknik Industri FTI-ITS
Publishing Year 2016
Publishing Place Surabaya
Collation
Abstract/Notes The advancement of the internet has been motivating manufacturers to increase its product sales. Initially manufacturers only use retailers (offline channel) to distribute their product, however recently they also equip their network with online channel. In its evolution practitioners try to merge both channels. The concept of using offline channel and the online channel simultaneously is called as Dual-Channel Supply Chain (DCSC). This paper examines about the optimal solution when both channel offers different services on their channels. Offline channel offers retail services while online channel offers product substitution. Scenarios used in this study are centralized and decentralized scenario with profit maximization. From the numerical experiment it can be shown that DCSC profit in centralized scenario is greater than in decentralized scenario. It also shows that retail services and product substitution affects retailer and online channel's pricing strategies differently. Retail services affect DCSC’s profit negatively. Meanwhile substitution level affects DCSC’s profit positively.
Specific Detail Info dual-channel supply channel, retail services, product substitution, optimization
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Pembimbing Erwin Widodo, S.T., M.Eng., Dr.Eng; Imam Baihaqi, S.T., M.Sc., Ph.D.
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