Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory
At present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer’s preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationalit...
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2018/7812784 |
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| _version_ | 1832558012097626112 |
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| author | Yi Tian Junhai Ma Wandong Lou |
| author_facet | Yi Tian Junhai Ma Wandong Lou |
| author_sort | Yi Tian |
| collection | DOAJ |
| description | At present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer’s preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationality expectation has been applied to explore the decision-making mechanism in finalizing the wholesale prices and sales commissions for the manufacturer and retailers. In addition, the dynamic features of the system are simulated by 2D bifurcation diagram, the largest Lyapunov exponent, attractor variation, and time series. The simulation results suggest that if the adjustment speeds of the wholesale prices and sales commissions change drastically, the system would fall into a chaotic state. If the consumers prefer the online channel, the wholesale prices and sales commissions may be raised and vice versa. However, too strong preference of each channel will make the system appear to have a considerably periodic fluctuation, even chaos. In the meantime, the parameter adjustment method can help make the periodic or chaotic system go back to stability. Therefore, the significance of this study is with a practical meaning to make better pricing strategy for players in dual-channel selling supply chain system. |
| format | Article |
| id | doaj-art-0e55e83f5d6d4606b419c340bf1cf076 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-0e55e83f5d6d4606b419c340bf1cf0762025-02-03T01:33:26ZengWileyComplexity1076-27871099-05262018-01-01201810.1155/2018/78127847812784Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity TheoryYi Tian0Junhai Ma1Wandong Lou2College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaAt present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer’s preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationality expectation has been applied to explore the decision-making mechanism in finalizing the wholesale prices and sales commissions for the manufacturer and retailers. In addition, the dynamic features of the system are simulated by 2D bifurcation diagram, the largest Lyapunov exponent, attractor variation, and time series. The simulation results suggest that if the adjustment speeds of the wholesale prices and sales commissions change drastically, the system would fall into a chaotic state. If the consumers prefer the online channel, the wholesale prices and sales commissions may be raised and vice versa. However, too strong preference of each channel will make the system appear to have a considerably periodic fluctuation, even chaos. In the meantime, the parameter adjustment method can help make the periodic or chaotic system go back to stability. Therefore, the significance of this study is with a practical meaning to make better pricing strategy for players in dual-channel selling supply chain system.http://dx.doi.org/10.1155/2018/7812784 |
| spellingShingle | Yi Tian Junhai Ma Wandong Lou Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory Complexity |
| title | Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory |
| title_full | Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory |
| title_fullStr | Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory |
| title_full_unstemmed | Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory |
| title_short | Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory |
| title_sort | research on supply chain stability driven by consumer s channel preference based on complexity theory |
| url | http://dx.doi.org/10.1155/2018/7812784 |
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