Dual channel closed-loop supply chain model with one manufacturer and two retailers under price discount contract and delivery lead time

Abstract

This paper considers dual channel closed loop supply chain with one manufacture and two retailers. A manufacturer combined the offline channel with a direct online channel in product sales. In this research, we inspected the dual channel closed loop supply chain model by notice delivery lead time for the online channel and price discount contracts. We constructed mathematical models with the profit maximization motive which is determined by three decision variables. Furthermore, we determine the optimal solution of the model. We analyze the effects of delivery lead time and price discount contract on the optimal operation. The results of the study show that delivery lead time strongly influences on the optimal profit system and price discount contract perform better than non-contract scenarios.This paper considers dual channel closed loop supply chain with one manufacture and two retailers. A manufacturer combined the offline channel with a direct online channel in product sales. In this research, we inspected the dual channel closed loop supply chain model by notice delivery lead time for the online channel and price discount contracts. We constructed mathematical models with the profit maximization motive which is determined by three decision variables. Furthermore, we determine the optimal solution of the model. We analyze the effects of delivery lead time and price discount contract on the optimal operation. The results of the study show that delivery lead time strongly influences on the optimal profit system and price discount contract perform better than non-contract scenarios.