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Discrete Dynamics in Nature and Society
Volume 2018 (2018), Article ID 6841519, 16 pages
Research Article

Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk

1School of Information Engineering, Tianjin University of Commerce, Tianjin, China
2School of Mathematics, Tianjin University, Tianjin, China
3School of Economics and Management, Hebei University of Technology, Tianjin, China

Correspondence should be addressed to Yancong Zhou; moc.621@87gnocyz

Received 28 September 2017; Revised 7 January 2018; Accepted 18 February 2018; Published 21 March 2018

Academic Editor: Yong Zhou

Copyright © 2018 Yancong Zhou et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Supply disruption may cause strong complaints of customers, which is a cost loss for the firms in the supply chain. Obviously, if realizing that there is the disruption risk, the members in a supply chain will adjust their decisions. For analyzing the influence, we consider a popular supply chain mode with dual channels, where one manufacturer has its direct sales channel and one traditional retailer channel. The manufacturer may suffer a supply disruption so that all ordered products by the retailer or the direct retail channel will be lost, and the members in supply chain will bear the corresponding disruption penalty from the customers. By considering four structures with different market power relations, the closed-form optimal price decisions of the four models are given. We found that the disruption factor improves the sales prices for any member structure as compared to the supply chain without the disruption. And the direct retail prices in the different modes are the same as each other, but the price of the traditional channel is influenced by the market share. And the sorts of the sales prices under different structures are given. We also conduct some extensive numerical analysis and compare the results under different structures. We observe that the expected optimal profits of considering the external penalty are smaller than those of no external penalty, and we give a sort of the optimal expected profits. And we also provide the effects of some parameters on the optimal decisions and the optimal expected profits.