The article analyses a multi-channel, multi-echelon supply chain model for single items comprising the manufacturer, distributors and retailers as the members of the chain. The profit function of each individual member is formulated based on the demand rate of the customers at each stage as a linear function of sales prices. In decentralised and centralised systems, the proposed model suggests the optimal pricing strategies under two-part tariff and bargaining process. A numerical example is illustrated to justify the proposed model. Sensitivity analysis of key parameters is carried out for feasibility of the model.
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Modak et al. (2015) studied this question.
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