This study used an observable delay game framework to investigate decisions on when manufacturers how have dual-channel supply chains should use either the retail or wholesale prices. The model reveals that the simultaneous setting of prices by manufacturers and retailers never takes place when they can work towards a model for leveling both prices and timing. The findings assert that manufacturers should either set direct prices at the same time when they are setting the wholesale prices or before (Matsui 506). This is an implication that they should avoid setting direct prices after setting wholesale prices for retailers. This is an approach that maximizes profits for manufacturers.
Distribution retailing article
This study was aimed at examining the optimal product unpacking location in a grocery retail supply chain. There are two choices that chain stores have at their disposal when it comes to unpacking. The options include unpacking at the distribution centers or unpacking at the stores. A chain store should not restrict itself to one unpacking option because it is all about finding the option that suits the distribution of each product (Broekmeulen et al. 89). The decision to be made might also differ depending on whether a product is refilled, repackaged, or sold as it is.
Between 1991 and 2012, there was a 32% increase in the number of manufactured products that were sold through wholesalers (Ganapati 4). 70% of the growth was a result of the growth and expansion of the large 1% of wholesalers in the US. The increase in the relevance of wholesalers is highly attributed to the distribution system that involved increased importation of products and enhanced channel for reaching their customers. One of the benefits is that it enables consumers to access products that are produced internationally in addition to the ones that are produced locally. The second benefit is that the economies of scale that are associated with wholesaling are passed over to the retailers and eventually to the consumers.
Broekmeulen, Rob ACM, et al. “Decision support for selecting the optimal product unpacking location in a retail supply chain.” European Journal of Operational Research, vol. 259, no. 1, 2017, pp 84-99.
Ganapati, Sharat. “The Modern Wholesaler: Global Sourcing, Domestic Distribution, and Scale Economies.” Semantic Scholar, no. 1, 2018, pp. 3-46.
Matsui, Kenji. “When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?.” European Journal of Operational Research, vol. 258, no. 2, 2017, pp. 501-511.