A Study on Cooperation Strategies of Dual Channel Supply Chain Based on Service Level

Dual channel operation under the competition condition not only requires to improve service level, but needs to achieve the collaborative service among channels, which amplifies the conflict of the manufacturer and the retailer and cooperation of the whole supply chain. Based on the service level under the dual channel supply chain, considering that cooperative strategy between network direct-channels and retail channels, to realize supply chain coordination, this paper builds providing the same services and differentiation service model based on the centralized decision and decentralized decision, through the theoretical model and numerical computation to explore the different service levels and network channels that effect on demands, prices, profits. Our conclusions show that to provide differentiated services to enable the system to achieve the optimal profit, manufacturers and retailers to adopt decentralized decision or centralized decision are affected by the acceptance degree of direct marketing network.