Operation strategies based on horizontal competition and service capability sharing under demand disturbance

DOI10.1155/2021/6682833MaRDI QIDQ2657447zbMATH OpenOpenAlexFDO

Authors Kun Wang, Dongsong Wu

Publication date 12 March 2021

Published in Discrete Dynamics in Nature and Society (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1155/2021/6682833

Mathematics Subject Classification ID

Transportation, logistics and supply chain management (90B06) Microeconomic theory (price theory and economic markets) (91B24)

Review text

Summary: The article considers the influence of demand disturbance on price, service capability, and operation mode selection of firms. Firstly, we discuss the equilibrium pricing and service capability strategy of the firm under three operation modes: price and service competition, price competition and service capability sharing, and price and service centralized making-decision. When there is demand disruption, firms determine their pricing and service capacity strategies under the three main operating models above. Finally, the comparative analysis shows that the influence of service capability in centralized decision price and service capability mode is greater than that on service capability in price competition and service capability sharing mode. The smoothness of service capability in price competition and service capability sharing mode is better than that in the centralized decision mode. And when the market price competition coefficient is moderate or the negative demand disturbance occurs, the price competition and service capability sharing mode has little influence on the profit compared with the other two modes (the profit loss is the smallest).

Recommendations

• Decisions-making for chain-to-chain competition under one demand disruption
• Competing and coordination strategies for a dual-channel supply chain with demand disruption
• Optimal decisions in a dual-channel supply chain under simultaneous demand and production cost disruptions
• Profitability vs. stability: the choice of trading strategies in a capacity sharing supply chain
• Pricing and sourcing strategies for competing retailers in supply chains under disruption risk

Cites work

• Competition and coordination in a three-tier supply chain with differentiated channels
• Coordination mechanisms for a distribution system with one supplier and multiple retailers
• Demand disruption and coordination of the supply chain with a dominant retailer
• Supply chain disruption management and evolutionarily stable strategies of retailers in the quantity-setting duopoly situation with homogeneous goods

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