A Study on Pricing for Product Service System under Dual Channel Supply Chain in a Three Echelon Inventory Model

Abstract

      Bringing together the supplier, manufacturer and retailer is an important strategy in a modern business world. It improves the relationship among the players of the supply chain. Today’s technology crisis to expand the business range in a wider level, to satisfy customer’s behavior and also improve supply chain profitability the manufacturers are combining online and offline services to create a new system known as dual channel supply chain system. This paper validates the effort of Dual Channel approach in a three echelon inventory model under the pricing strategy for products and service bundle under the PSS concept. An advanced idea to sell a bundle of product and its related services are known as a product-service system (PSS). The main goal of this proposed model is to reduce the total cost and also maximize the overall profit of the supply chain. Mathematical model and the numerical example are provided to exhibit the proposed model.