A MATHEMATICAL APPROACH OF DUAL CHANNEL SUPPLY CHAIN BY CONSIDERING, CUSTOMER LOYALITY, CORPORATE SOCIAL RESPONSIBILITY, AND DELIVERY TIME
Abstract
Rapid technological advancement has fundamentally transformed consumer purchasing behavior, leading to the widespread adoption of online shopping channels. In this context, timely product delivery has become a critical determinant of customer satisfaction and loyalty in dual-channel markets. At the same time, growing environmental concerns have increased the importance of integrating Corporate Social Responsibility into supply chain decision-making. Motivated by these developments, this study develops a dual-channel supply chain model that simultaneously incorporates customer loyalty, delivery-time sensitivity, and Corporate Social Responsibility. The novelty of the study lies in its integrated analysis of these three factors within two distinct payment schemes, namely real-time payment and prepaid systems, under both decentralized and centralized decision-making structures. Optimal decisions are derived analytically and numerically to determine the pricing and operational strategies that maximize system profits in each setting. Furthermore, sensitivity analysis is conducted to examine how customer loyalty, delivery-time sensitivity, and Corporate Social Responsibility elasticity affect the decision variables and profitability of the supply chain. The results show that increases in customer loyalty and Corporate Social Responsibility elasticity enhance overall system profit. In addition, Corporate Social Responsibility elasticity influences most decision variables, except the wholesale price, manufacturer demand, and retailer demand. These findings provide new insights into the role of payment mechanisms and sustainability-oriented strategies in improving the performance of dual-channel supply chains.
Downloads
References
S. Chopra and P. Meindl, Supply chain management : strategy, planning, and operation. Pearson, 2013.
M. Basuki, “SUPPLY CHAIN MANAGEMENT: A REVIEW,” Journal of Industrial Engineering and Halal Industries, vol. 2, no. 1, Sep. 2021. doi: https://doi.org/10.14421/jiehis.2651
M. L. Tseng, M. S. Islam, N. Karia, F. A. Fauzi, and S. Afrin, “A LITERATURE REVIEW ON GREEN SUPPLY CHAIN MANAGEMENT: TRENDS AND FUTURE CHALLENGES,” Feb. 01, 2019, Elsevier B.V. doi: https://doi.org/10.1016/j.resconrec.2018.10.009
L. X. Lu and J. M. Swaminathan, “SUPPLY CHAIN MANAGEMENT,” in International Encyclopedia of the Social & Behavioral Sciences: Second Edition, Elsevier Inc., 2015, pp. 709–713. doi: https://doi.org/10.1016/B978-0-08-097086-8.73032-7
R. Wang, S. Wang, and S. Yan, “PRICING AND COORDINATION STRATEGIES OF DUAL CHANNELS CONSIDERING CONSUMERS’ CHANNEL PREFERENCES,” Sustainability (Switzerland), vol. 13, no. 20, Oct. 2021. doi: https://doi.org/10.3390/su132011191
R. Batarfi, M. Y. Jaber, and S. Zanoni, “DUAL-CHANNEL SUPPLY CHAIN: A STRATEGY TO MAXIMIZE PROFIT,” Appl Math Model, vol. 40, no. 21–22, pp. 9454–9473, Nov. 2016. doi: https://doi.org/10.1016/j.apm.2016.06.008
Y.-Y. Li, “OVERVIEW OF RESEARCH ON DUAL-CHANNEL SUPPLY CHAIN MANAGEMENT,” Advances in Economics, Business and Management Research, vol. 51, 2018.
J. Chen, H. Zhang, and Y. Sun, “IMPLEMENTING COORDINATION CONTRACTS IN A MANUFACTURER STACKELBERG DUAL-CHANNEL SUPPLY CHAIN,” Omega (Westport), vol. 40, no. 5, pp. 571–583, 2012. doi: https://doi.org/10.1016/j.omega.2011.11.005
M. Ren, J. Liu, S. Feng, and A. Yang, “COMPLEMENTARY PRODUCT PRICING AND SERVICE COOPERATION STRATEGY IN A DUAL-CHANNEL SUPPLY CHAIN,” Discrete Dyn Nat Soc, vol. 2020, 2020 doi:. https://doi.org/10.1155/2020/2314659
C. He and H. Zhou, “A RETAILER PROMOTION POLICY MODEL IN A MANUFACTURER STACKELBERG DUAL-CHANNEL GREEN SUPPLY CHAIN,” in Procedia CIRP, Elsevier B.V., 2019, pp. 722–727. doi: https://doi.org/10.1016/j.procir.2019.04.104
S. Xu, H. Tang, Z. Lin, and J. Lu, “PRICING AND SALES-EFFORT ANALYSIS OF DUAL-CHANNEL SUPPLY CHAIN WITH CHANNEL PREFERENCE, CROSS-CHANNEL RETURN AND FREE RIDING BEHAVIOR BASED ON REVENUE-SHARING CONTRACT,” Int J Prod Econ, vol. 249, Jul. 2022. doi: https://doi.org/10.1016/j.ijpe.2022.108506
T. Xiao and J. Shi, “PRICING AND SUPPLY PRIORITY IN A DUAL-CHANNEL SUPPLY CHAIN,” Eur J Oper Res, vol. 254, no. 3, pp. 813–823, Nov. 2016. doi: https://doi.org/10.1016/j.ejor.2016.04.018
B. Pala, L. E. Cárdenas-Barrón, and K. S. Chaudhuri, “PRICE, DELIVERY TIME, AND RETAIL SERVICE SENSITIVE DUAL-CHANNEL SUPPLY CHAIN,” Scientia Iranica, vol. 28, no. 3, pp. 1765–1779, May 2021. doi: https://doi.org/10.24200/sci.2019.52235.2611
J. Q. Yang, X. M. Zhang, H. Y. Fu, and C. Liu, “INVENTORY COMPETITION IN A DUAL-CHANNEL SUPPLY CHAIN WITH DELIVERY LEAD TIME CONSIDERATION,” Appl Math Model, vol. 42, pp. 675–692, Feb. 2017. doi: https://doi.org/10.1016/j.apm.2016.10.050
A. R. Yanuarsih, R. Setiyowati, Pangadi, and Sutanto, “DUAL CHANNEL SUPPLY CHAIN MODEL WITH DELIVERY LEAD TIME ON THE IMPERFECT PRODUCTION PROCESS BY NOTICE INTO CARBON EMISSION CAPACITY REGULATION,” in Journal of Physics: Conference Series, 2019. doi: https://doi.org/10.1088/1742-6596/1397/1/012059
A. R. Yanuarsih, R. Setiyowati, Pangadi, and Sutanto, “DUAL CHANNEL SUPPLY CHAIN MODEL WITH DELIVERY LEAD TIME ON THE IMPERFECT PRODUCTION PROCESS BY NOTICE INTO CARBON EMISSION CAPACITY REGULATION,” in Journal of Physics: Conference Series, Institute of Physics Publishing, Dec. 2019. doi: https://doi.org/10.1088/1742-6596/1397/1/012059
R. Setiyowati, Sutanto, S. N. P. Ramadhani, and P. Widyaningsih, “DUAL CHANNEL CLOSED-LOOP SUPPLY CHAIN MODEL WITH ONE MANUFACTURER AND TWO RETAILERS UNDER PRICE DISCOUNT CONTRACT AND DELIVERY LEAD TIME,” in AIP Conference Proceedings, 2019. doi: https://doi.org/10.1063/1.5139165
M. Jedynak, Corporate Social Responsibility And The Supply Chain (CSR Collaboration With Suppliers, 1st ed. NewYork: Routledge, 2025. doi: https://doi.org/10.4324/9781003451228-1
N. M. Modak, S. Panda, S. S. Sana, and M. Basu, “CORPORATE SOCIAL RESPONSIBILITY, COORDINATION AND PROFIT DISTRIBUTION IN A DUAL-CHANNEL SUPPLY CHAIN,” Pacific Science Review, vol. 16, no. 4, pp. 235–249, Dec. 2014. doi: https://doi.org/10.1016/j.pscr.2015.05.001
G. Pfajfar, A. Shoham, A. Małecka, and M. Zalaznik, “VALUE OF CORPORATE SOCIAL RESPONSIBILITY FOR MULTIPLE STAKEHOLDERS AND SOCIAL IMPACT – RELATIONSHIP MARKETING PERSPECTIVE,” J Bus Res, vol. 143, pp. 46–61, Apr. 2022. doi: https://doi.org/10.1016/j.jbusres.2022.01.051
S. Panda, N. M. Modak, and D. Pradhan, “CORPORATE SOCIAL RESPONSIBILITY, CHANNEL COORDINATION AND PROFIT DIVISION IN A TWO-ECHELON SUPPLY CHAIN,” International Journal of Management Science and Engineering Management, vol. 11, no. 1, pp. 22–33, 2016. doi: https://doi.org/10.1080/17509653.2014.968815
B. Xin, L. Zhang, and L. Xie, “PRICING DECISION OF A DUAL-CHANNEL SUPPLY CHAIN WITH DIFFERENT PAYMENT, CORPORATE SOCIAL RESPONSIBILITY AND SERVICE LEVEL,” RAIRO - Operations Research, vol. 56, no. 1, pp. 49–75, Jan. 2022. doi: https://doi.org/10.1051/ro/2021187
S. Li, M. Li, and N. Zhou, “PRICING AND COORDINATION IN A DUAL-CHANNEL SUPPLY CHAIN WITH A SOCIALLY RESPONSIBLE MANUFACTURER,” PLoS One, vol. 15, no. 7 July, Jul. 2020. doi: https://doi.org/10.1371/journal.pone.0236099
Z. Pi, W. Fang, S. C. Perera, and B. Zhang, “ENHANCING THE ONLINE BUYER PERCEPTION OF CONSUMER EXPERIENCE PRODUCTS IN A DUAL-CHANNEL SUPPLY CHAIN: A NEW ROLE OF FREE-RIDING,” Int J Prod Econ, vol. 253, Nov. 2022. doi: https://doi.org/10.1016/j.ijpe.2022.108600
X. Pu, L. Gong, and X. Han, “CONSUMER FREE RIDING: COORDINATING SALES EFFORT IN A DUAL-CHANNEL SUPPLY CHAIN,” Electron Commer Res Appl, vol. 22, pp. 1–12, Mar. 2017. doi: https://doi.org/10.1016/j.elerap.2016.11.002
B. Purwaningsih and R. Setiyowati, “DUAL-CHANNEL SUPPLY CHAIN MODEL BY CONSIDERING CONSUMER LOYALTY AND DELIVERY TIME,” in AIP Conference Proceedings, American Institute of Physics, Mar. 2025. doi: https://doi.org/10.1063/5.0262391
J. Chen, H. Zhang, and Y. Sun, “IMPLEMENTING COORDINATION CONTRACTS IN A MANUFACTURER STACKELBERG DUAL-CHANNEL SUPPLY CHAIN,” Omega (Westport), vol. 40, no. 5, pp. 571–583, 2012. doi: https://doi.org/10.1016/j.omega.2011.11.005
C. E. Etumnu, K. Foster, N. O. Widmar, J. L. Lusk, and D. L. Ortega, “DOES THE DISTRIBUTION OF RATINGS AFFECT ONLINE GROCERY SALES? EVIDENCE FROM AMAZON,” Agribusiness, vol. 36, no. 4, pp. 501–521, Oct. 2020. doi: https://doi.org/10.1002/agr.21653
A. K. Manna, R. Mondal, A. A. Shaikh, I. Ali, and A. K. Bhunia, “SINGLE-MANUFACTURER AND MULTI-RETAILER SUPPLY CHAIN MODEL WITH PRE-PAYMENT BASED PARTIAL FREE TRANSPORTATION,” RAIRO - Operations Research, vol. 55, no. 2, pp. 1063–1076, Mar. 2021. doi: https://doi.org/10.1051/ro/2021053
Z. Zhang, “MUTUALISM OR COOPERATION AMONG COMPETITORS PROMOTES COEXISTENCE AND COMPETITIVE ABILITY,” Ecol Modell, vol. 164, no. 2–3, pp. 271–282, Jun. 2003. doi: https://doi.org/10.1016/S0304-3800(03)00069-3
Copyright (c) 2026 Bhecti Purwaningsih, Ririn Setiyowati, Nughthoh Arfawi Khurdi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this Journal agree to the following terms:
- Author retain copyright and grant the journal right of first publication with the work simultaneously licensed under a creative commons attribution license that allow others to share the work within an acknowledgement of the work’s authorship and initial publication of this journal.
- Authors are able to enter into separate, additional contractual arrangement for the non-exclusive distribution of the journal’s published version of the work (e.g. acknowledgement of its initial publication in this journal).
- Authors are permitted and encouraged to post their work online (e.g. in institutional repositories or on their websites) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published works.
1.gif)
