Coordination of Dual-Channel Supply Chain Under Demand Sensitive to Price and Order-To-Delivery Cycle

The issue of channel coordination is studied with the demand sensitive to price and order-to-delivery cycle. Combining with the Stackelberg Game Theory, the paper analyses the manufacturer and the retailer's optimal pricing and profits in decentralized decision model and centralized decision model. Then the coordination contract of the wholesale price discount was designed to achieve the coordination of the dual-channel supply chain. Finally the paper analyses the impact of order-to-delivery cycle and sensitivity of demand to order-to-delivery cycle to the pricing and profits through a numerical example, and verifies the effectiveness of the coordination contract.