Research on Competition and Coordination of Omni-Channel Supply Chain with Different Channel Structures

The cooperation and integration of channels has promoted the evolution of the traditional dual-channel supply chain into an omni-channel supply chain. The omni-retailing modes can be divided into M mode and R mode depending on the difference in the online channel openers (which are the manufacturer and the retailer, respectively). This paper explores the inter-chain competition equilibrium and intra-chain coordination strategy of two different omni-channel supply chains (which adopt M mode and R mode, respectively). First, the EPEC (Equilibrium Problems with Equilibrium Constraints), MPEC (Mathematical Program with Equilibrium Constraints), and Nash decision models are used to depict the competition equilibrium of the two omni-channel supply chains for three cases: Both supply chains are decentralized, one is decentralized, and the other is integrated, and both are integrated, respectively. Then, the supply chain contracts are designed to coordinate the different kinds of omni-retailing modes. Last, this study verifies and extends the relevant conclusions by using numerical analysis. The results show that: service cooperation is the dominant strategy of omni-channel supply chains when there exists inter-chain competition; R mode is gradually dominating with the deepening of the service cooperation; there exists the parameter interval to make it so that M mode and R mode each becomes the dominant mode in supply chain competition; supply chain coordination is the dominant strategy of inter-chain competition; and the wholesale price contract with subsidy designed in this paper can realize the coordination of the omni-channel supply chain, effectively. But when the two omni-channel supply chains all adopt the coordinative strategy, the supply chain system may fall into the “prisoner’s dilemma”.