Effects of green improvement and pricing policies in a double dual-channel competitive supply chain under decision-making power strategies

Abstract

With the intensive growth of internet use, the customers choose the online market as the right preference. Hence, manufacturers are attracted to launch an online channel that includes a retail channel. To maintain the versatile demand types of products, a retailer is to stock more than one product of the same category, and consequently, he has to purchase products from different manufacturers. This article formulates a dual-channel supply chain model with two manufacturers and a standard retailer, where the optimal online prices, retail prices, wholesale prices, and level of green improvements are decided under different types of decision making power strategies such as Centralized, joint manufacturers Stackelberg, separate Stackelberg, Nash games are investigated. The optimal results are derived and compared with the help of a numerical example. Moreover, a sensitivity analysis is performed to scrutinize the effect of some important parameters. It is found that the green level is higher in a double dual-channel model than in a single dual-channel model. Moreover, the own-channel price sensitivity parameters affect the profit functions of the members negatively. The manufacturers must control the cost-coefficients of greening to increase the green level of the manufacturing products.