Dual-channel Supply Chain Sale Strategies with Return Guarantee

This paper explores the optimal pricing strategies under the centralized and decentralized dual-channel supply chain concerning customer returns and return guarantee. The influence of parameters on the optimal value such as optimal price, return policies, return guarantee, market share was analyzed. It shows that the profit of the enterprise is reduced with the increase of the return rates, and the return guarantee price is positively related to the profit of the enterprise. Enterprises can actively use the means of return guarantee and increase its price in order to obtain more supply chain profit, and increasing the size of the network direct sales is also effective to supply chain.