Direct-selling Product Selection Strategy for Manufacturer with Heterogeneous Products under Dual-channel
Considering a dual-channel supply chain consisted of a retailer and a manufacturer with heterogeneous products,this paper focuses on the product selection strategy in the direct channel and how the products supplied in the retail channel affect the strategy.It is shown that when the direct-selling cost is low,the manufacturer's optimal choice is to sell both high-end and low-end products in the direct channel;when both the production and selling costs are high,the manufacturer chooses to sell only the high-end product in the direct channel.In the case of supplying the low-end product only or both products in the retail channel,when the production cost is low and the direct-selling cost is high,the manufacturer chooses to sell only the high-end products in the direct channel;when the production cost is low but the direct-selling cost is medium,the manufacturer chooses to sell the low-end product in the direct channel.In the case of supplying the high-end product only in the retail channel,when the production cost is low,the manufacturer chooses to sell both products in the direct channel;when the production cost is medium but the direct selling cost is high,the manufacturer chooses to sell only the high-end product in the direct channel.
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