Response surface methodology of dual-channel green supply-chain pricing model by considering uncertainty

ABSTRACT

Companies apply dual-channel supply-chain (DCSC) by allocating online facilities without leaving conventional retailers. As a result, carbon emissions from production activities have increased in the company structure. Nowadays, DCSC researchers have a tendency to set their models in deterministic settings. These models cannot cope with the structure complexity. This research used Response Surface Methodology to analyse uncertainty in DCSC. The decision variables were the retailers and online prices, while the responses were price channel sensitivities (βo and βr), cross-channel sensitivities (γor and γro), profit estimation, and carbon emission estimation. In illustrating the real-world competition under oligopoly games, the optimisation phase used nonlinear programming under cooperative and non-cooperative scenarios. The result showed that in each channel, price combination had a significant effect on the response variables. Price differences on each channel could confirm the changes of customer preference channel. This study finds that the application of a response surface methodology can describe the significance of price to the DCSC system.

KEYWORDS:

• Dual-channel supply chain
• pricing
• probabilistic
• response surface methodology
• uncertainty

Disclosure statement

No potential conflict of interest was reported by the authors.

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Notes on contributors

Januardi Januardi

Januardi Januardi was a master graduate of Industrial System Optimization of Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia. His has a bachelor’s degree in Agroindustrial Technology from IPB University, Bogor, Indonesia. Currently, he continues his PhD study at National Taiwan University of Science & Technology, Taipei, Taiwan. His research interests are in quantitative modelling in operation research, decision-making using statistical approach, and experimental design especially the application of response surface methodology.

Erwin Widodo

Erwin Widodo Erwin Widodo was granted his Master Degree from Ritsumeikan University of Kyoto and his Doctoral Degree from Hiroshima University both in Japan, in 2006 and 2012, respectively. His expertise is of multi-player decision-making in industry especially by using game theory. He is lecturer from Quantitative Modeling and Industrial Policy Analysis (QMIPA) in Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember (ITS), Surabaya, Indonesia. He actively joins several international associations related to his field, i.e. IDGS, Informs, IAEng, IEOM and the likes. Moreover, he also joins as board member in several international journals such as IJISE, OSCM, IJTech, Cogent Engineering, etc.