A service
collaboration decision problem in a dual-channel supply chain is studied with the
service level and the customer’s acceptance of the Internet channel is taken
into consideration. Then the Stackelberg decentralized decision model and the
centralized decision model are developed for two settings that the retailer
provides the same service level in both channels or not. The conclusion implies
that the system profits, the manufacturer’s optimal profit and retailer’s optimal
profit are always higher when different services are provided than the same service,
and the optimal service level for the direct channel is a little lower than
that for the traditional channel under decentralized mode.
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