Work

Optimal Dual-channel Distribution Configuration of a Manufacturer Under Showrooming

Year: 2022

Type: article

Abstract: We study the channel configuration problem of a monopolistic manufacturer under three dual-channel supply-chain configurations (DCSC). The first DCSC configuration corresponds to the manufacturer, the retailer (brick-and-mortar store) and the e-tailer (online store) who are all independent entities. In the second DCSC configuration, the manufacturer sells through its own brick and mortar stores (company stores) and competes with an independent e-tailer. In the third DCSC configuration, the manufacturer sells through an e-marketplace it owns and competes with an independent retailer. We find the equilibrium profit, price, and demand of each entity. Using numerical analysis, we find the effect of showrooming (examining product at the brick-and-mortar store and then buying from the online store).

Source: IFAC-PapersOnLine

DOI: 10.1016/j.ifacol.2022.10.016

Authors: T.M. Rofin, Biswajit Mahanty, Jagan Jacob

Institutions: Indian Institute of Management Mumbai, Indian Institute of Technology Kharagpur, Xavier University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4312970366

FWCI:

Cites: 9

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Related to: 10