Complex characteristics of multichannel household appliance supply chain with the price competition
type: Item
instance of: scholarly article
title: Complex characteristics of multichannel household appliance supply chain with the price competition
zbMATH Open document ID: 1367.93055
DOI: 10.1155/2017/4327069
author: Junhai Ma
author: Wandong Lou
published in: Complexity
publication date: 2017-08-03T00:00:00Z
review text: Summary: This paper studies the complex characteristics caused by the price competition in multichannel household appliance supply chains. We consider a two-level household appliance supply chain system consisting of a manufacturer with an Internet channel and a retailer with a traditional channel and an Internet channel. Each channel's price-setting follows the bounded rational decision process in order to obtain the optimal profit or more market share. Considering that the price competition often leads to the demand and order fluctuation, we also investigate the bullwhip effect of the multichannel supply chains on the basis of the order-up-to-inventory policy. From the numerical simulation, we find a system in a chaotic state will suffer larger bullwhip effect than a stable system, and the manufacturer's Internet channel is helpful to mitigate the bullwhip effect. Our results provide some useful managerial inspirations for the household manufacturer and retailers. Firstly, each channel should make their retail price with a suitable price adjustment speed in the stable region, and each time pricing cannot exceed the domain of attraction. Secondly, the manufacturer can adopt a more radical pricing strategy in their Internet channel to mitigate the bullwhip effect. Thirdly, the price adjustment should be reviewed and be appropriately reduced if the price adjustment is too large.
Mathematics Subject Classification ID: 93A30
Mathematics Subject Classification ID: 91B74
zbMATH DE Number: 6755976
zbMATH Keywords: price competition
zbMATH Keywords: multichannel household appliance supply chains
zbMATH Keywords: bullwhip effect
zbMATH Keywords: household manufacturer and retailers
Wikidata QID: Q59142902
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2017/4327069
OpenAlex ID: W2596168807
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description: scientific article; zbMATH DE number 6755976