The Open Cybernetics & Systemics Journal

2015, 9 : 851-856
Published online 2015 August 19. DOI: 10.2174/1874110X01509010851
Publisher ID: TOCSJ-9-851

Pricing and Logistics Service Level Decisions in Retailer’s Dual-Channel Cooperation

Tianjiao Zhang and Jie Xu
School of Economics and Management, Beijing Jiaotong University, 100044, Haidian, Beijing, China.

ABSTRACT

Based on the cooperation between retailer and third-party network platform, this article used consumer valuation model considering sale price and logistics factors. It calculated the optimal sale price and logistics service level in both traditional channel and internet channel and then get the maximal profit. By discussing the range of wholesale price, it analyzed the respective profits of retailer and third-party network platform. And then, it made sensitivity analysis of profits and sales quantities by using MATLAB software. This article concludes the cooperative conditions under centralized decision making situation and provides guidelines for retailers to develop dual-channel cooperation.

Keywords:

Dual-channel, logistics service level, price, retailer, third-party network platform.