Pricing decision problem in uncertain supply chain with dual distribution channels

Recently, as online shopping has become an important distribution channel, most manufacturers distribute their products through both traditional channels (referred to as “r-channel”) and online channels (referred to as “e-channel”). In this paper, we consider a pricing decision problem in supply chains in which the manufacturer sells to a retailer as well as to consumers through a company store (e.g., online shop or direct-sale store) directly. The demands are characterized as a price-dependent and channel-dependent (r-channel v.s. e-channel) uncertain functions. Meanwhile, manufacturing costs and sales costs are characterized as uncertain variables. In addition, uncertain expected bilevel models are employed to explore how the channel members make their optimal pricing decisions under di erent power structures. Numerical experiments are also conducted to examine the e ects of the power structures and uncertain degrees on the equilibrium prices and expected profits of the participants. It is revealed that consumers will su er from higher prices when facing uncertain environment. The supply chain members may benefit from higher uncertain degrees of their own costs, whereas the other channel member will gain less profit. Some more managerial highlights are presented in this paper.