JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2022, Vol. 57 ›› Issue (3): 96-110.doi: 10.6040/j.issn.1671-9352.0.2020.557

Previous Articles    

Manufacturers production and sales strategies in supply chain considering online selling channel with shift of economies scale to diseconomies

JIANG Ya-qi*, DAI Geng-xin, LIU Xiao-dong, MU Zong-yu   

  1. School of Business, Qingdao University, Qingdao 266071, Shandong, China
  • Published:2022-03-15

PDF (PC)

202

Abstract: The production and sales strategies of the supply chain with online selling channel based on the total cost function of economies and diseconomies of scale is discussed. The decision-making models of retail single-channel and dual-channel supply chain are constructed respectively. Based on the model analysis, economies and diseconomies cost factors affect the production and sales of various types of strategic supply chains is obtained; as the market demand increases, the manufacturer increases the production and sales quantities of products, so the production strategy shifts from the economies of scale to diseconomies; under the economies or diseconomies conditions, the consumers greater or lesser loyalty to the retail channel is not conducive to the manufacturer or the retailer to participate in the dual-channel system. When the consumers loyalty to the retail channel is within the corresponding threshold range, both the manufacturer and the retailer are willing to participate in the dual-channel system, and as the consumers loyalty to online direct sales channels and the products sensitivity coefficient of unit sales price to alternative sales channels increase, the manufacturer will choose the dual-channel sales strategy.

Key words: supply chain management, economies of scale, direct network, game, strategy

CLC Number: 

  • F272
[1] ANAND K S, MENDELSON H. Information and organization for horizontal multimarket coordination[J]. Management Science, 1997, 43(12):1609-1627.
[2] ELIASHBERG J, STEINBERG R. Competitive strategies for two firms with asymmetric production cost structures[J]. Management Science, 1991, 37(11):1452-1473.
[3] GRIFFIN G. The process analysis alternative to statistical cost functions: an application to petroleum refining[J]. The American Economic Review, 1972, 62(1):46-56.
[4] ZENGER T R. Explaining organizational diseconomies of scale in R&D: agency problems and the allocation of engineering talent, ideas, and effort by firm size[J]. Management Science, 1994, 40(6):708-729.
[5] ALVAREZ A, ARIAS C. Diseconomies of size with fixed managerial ability[J]. American Journal of Agricultural Economics, 2003, 85(1):134-142.
[6] WANG E T G, SEIDMANN A. Electronic data interchange: competitive externalities and strategic implementation policies[J]. Management Science, 1995, 41(3):401-418.
[7] HA A Y, TONG S L, ZHANG H T. Sharing demand information in competing supply chains with production diseconomies[J]. Management Science, 2011, 57(3):566-581.
[8] SHANG W X, HA A Y, TONG S L. Information sharing in a supply chain with a common retailer[J]. Management Science, 2016, 62(1):245-263.
[9] ZHAO D Z, LI Z B. The impact of manufacturers encroachment and nonlinear production cost on retailers information sharing decisions[J]. Annals of Operations Research, 2018, 264(1/2):499-539.
[10] BAUMGARTNER K, FUETTERER A, THONEMANN U W. Supply chain design considering economies of scale and transport frequencies[J]. European Journal of Operational Research, 2012, 218(3):789-800.
[11] 赵海霞, 艾兴政, 唐小我. 制造商规模不经济的链与链竞争两部定价合同[J]. 管理科学学报, 2013,16(2):60-70. ZHAO Haixia, AI Xingzheng, TANG Xiaowo. Two-part tariffs of chain-to-chain competition under manufacturers scale diseconomies[J]. Journal of Management Sciences in China, 2013, 16(2):60-70.
[12] 赵海霞, 艾兴政, 唐小我. 链与链基于规模不经济的纵向联盟和利润分享[J]. 管理科学学报, 2014,17(1):48-56. ZHAO Haixia, AI Xingzheng, TANG Xiaowo. Vertical alliance and profit sharing contract based on diseconomies of scale under chain-to-chain competition[J]. Journal of Management Sciences in China, 2014, 17(1):48-56.
[13] 石纯来, 聂佳佳. 规模不经济下奖惩机制对闭环供应链制造商合作策略影响[J]. 中国管理科学, 2019,27(3):85-95. SHI Chunlai, NIE Jiajia. The effects of premium and penalty mechanism on manufacturers cooperative strategies in the closed-loop supply chain with production diseconomies[J]. Chinese Journal of Management Science, 2019, 27(3):85-95.
[14] 赵琳, 牟宗玉. 需求扰动下生产规模不经济闭环供应链的应急渠道决策[J]. 中国管理科学, 2019,27(7):68-82. ZHAO Lin, MU Zongyu. Emergency channel decisions of closed-loop supply chain with production diseconomies under demand disruptions[J]. Chinese Journal of Management Science, 2019, 27(7):68-82.
[15] 万骁乐, 王茜, 孟庆春, 等. 生产规模不经济性条件下考虑消费者偏好的智慧供应链扶贫模型研究[J]. 中国管理科学, 2020, 28(2):153-165. WAN Xiaole, WANG Qian, MENG Qingchun, et al. Smart supply chain decision and coordination strategy considering poverty alleviation concern based on manufacture diseconomies of scale[J]. Chinese Journal of Management Science, 2020, 28(2):153-165.
[16] CHIANG W Y K, CHHAJED D, HESS J D. Direct marketing, indirect profits: a strategic analysis of dual-channel supply-chain design[J]. Management Science, 2003, 49(1):1-20.
[17] TSAY A A, AGRAWAL N. Channel conflict and coordination in the E-commerce age[J]. Production and Operations Management,
[18] YUE X H, LIU J. Demand forecast sharing in a dual-channel supply chain[J]. European Journal of Operational Research, 2006, 174(1):646-667.
[19] MUKHOPADHYAY S K, ZHU X W, YUE X H. Optimal contract design for mixed channels under information asymmetry[J]. Production and Operations Management, 2008, 17(6):641-650.
[20] DAN B, XU G Y, LIU C. Pricing policies in a dual-channel supply chain with retail services[J]. International Journal of Production Economics, 2012, 139(1):312-320.
[21] WANG L S, SONG H M, WANG Y Z. Pricing and service decisions of complementary products in a dual-channel supply chain[J]. Computers & Industrial Engineering, 2017, 105:223-233.
[22] ZHOU Y W, GUO J S, ZHOU W H. Pricing/service strategies for a dual-channel supply chain with free riding and service-cost sharing[J]. International Journal of Production Economics, 2018, 196:198-210.
[23] HE Y, HUANG H F, LI D. Inventory and pricing decisions for a dual-channel supply chain with deteriorating products[J]. Operational Research, 2020, 20(3):1461-1503.
[24] BATARFI R, JABER M Y, GLOCK C H. Pricing and inventory decisions in a dual-channel supply chain with learning and forgetting[J]. Computers & Industrial Engineering, 2019, 136:397-420.
[25] LI B, ZHU M Y, JIANG Y S, et al. Pricing policies of a competitive dual-channel green supply chain[J]. Journal of Cleaner Production, 2016, 112:2029-2042.
[26] 王先甲, 周亚平, 钱桂生. 生产商规模不经济的双渠道供应链协调策略选择[J]. 管理科学学报, 2017, 20(1):17-31. WANG Xianjia, ZHOU Yaping, CHIN Kwaisang. The selection of dual-channel supply chain coordination strategy considering manufacturer diseconomies of scale[J]. Journal of Management Sciences in China, 2017, 20(1):17-31.
[27] 聂佳佳, 石纯来. 规模不经济对制造商开通直销渠道的影响[J]. 运筹与管理, 2017,26(2):68-75. NIE Jiajia, SHI Chunlai. Effects of manufacturers scale diseconomies on launching direct channel[J]. Operations Research and Management Science, 2017, 26(2):68-75.
[28] 孙自来, 王旭坪, 詹红鑫, 等. 不同权力结构下制造商双渠道供应链的博弈分析[J]. 中国管理科学, 2020,28(9):154-163. SUN Zilai, WANG Xuping, ZHAN Hongxin, et al. Game analysis in a manufacturer dual-channel supply chain with different power structures[J]. Chinese Journal of Management Science, 2020, 28(9):154-163.
[1] GUI Yun-miao, HU Hong-chun, GONG Ben-gang. Research on information disclosure decision of bilateral platform in the blockchain era [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2022, 57(3): 89-95.
[2] Jing-hong WANG,Li-na LIANG,Hao-kang LI,Yi ZHOU. Community discovery algorithm based on attention network feature [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2021, 56(9): 1-12,20.
[3] Ping CAO,Zhi-lin WANG,Hui HAO. Stability analysis of upstream and downstream enterprises' green innovation—Based on the perspective of evolutionary games [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2021, 56(3): 1-11.
[4] . Topological structure of graphbased networked evolutionary games [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2021, 56(10): 11-22.
[5] WANG Ren-qing, ZHANG Yu-han, SUN Shu-xia, ZHENG Pei-ming. Review and prospect of vegetation research in the Yellow River Delta [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2021, 56(10): 135-148.
[6] MENG Qing-chun, YU Yu, JIN Zong-kai, XIE Lei. Research on supply chain joint R&D strategy considering the influence of information platform [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2021, 56(10): 149-158.
[7] De-qing MA,Jin-song HU. Dynamic quality improvement strategies with delay effect in consumer reference quality [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2020, 55(9): 101-89.
[8] QU Peng-peng, ZHOU Yan. Equilibrium of a closed-loop supply chain network considering manufacturers fairness concern [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2020, 55(5): 114-126.
[9] . Supply chain optimization considering add-on pricing under distribution contract [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2020, 55(12): 103-110.
[10] Yun-miao GUI,Zhong WU,Hong-chun HU. Pricing strategy of vehicles and cargos matching platform in the sharing economy [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2020, 55(1): 69-76,85.
[11] Feng-shan SI,Jing WANG,Dao-ming DAI. Evolutionary game analysis of dual-channel supply chain considering service quality and delay decision [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2020, 55(1): 86-93, 101.
[12] XU Jin, ZHANG Jiang-hua. Analysis of strategies in multi-sided markets [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2019, 54(7): 117-123.
[13] Pei-ming WANG,Xing-shu CHEN,Hai-zhou WANG,Wen-xian WANG. Research on microblog data collection based on multiple hybrid strategy [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2019, 54(5): 28-36, 43.
[14] XIAO Min, YU Min, HE Xin-hua. Channel pricing strategy of supply chain considering vertical E-commerce [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2019, 54(3): 110-118.
[15] CAO Hui-rong , ZHOU Wei, CHU Tong, ZHOU Jie. Dynamic analysis of Bertrand game model about taxation of government and subsidy [J]. JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE), 2019, 54(11): 52-62.
Viewed
Full text


Abstract

Cited
  Shared   
  Discussed   
No Suggested Reading articles found!
Copyright 2018 © Editorial office of JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE)
Supported by Beijing Magtech Co.Ltd