A Study of Lead Time Impact In Dual-Channel Supply-Chain Financial Performance: An Indonesian Case

Abstract

Dual channel supply chain(in short DCSC) has been encountering its growing phase in recent years. This concept of selling a particular product through offline/conventional store as well as through newly introduced online channel offers revenue addition and new market captive. Aside of this advantage, however, implementing DCSC also comes along with some challenges. Channel inner-competition between offline and online one is one of them. In giving a theoretical based grip for offline and online managers, this paper proposes a portray of DCSC inner-competition by exposing the effect of lead time happens in online channel to both individual channel or total supply chain financial performance. An improved model based on author’s previous work series on DCSC is utilized to analyze this purpose. The improvement is done by incorporating a corresponding lead time parameter in the basic DCSC demand function. After doing numerical example based on Bertrand scheme for offline-online price setting and performing sensitivity analysis on important system parameter, a set of managerial implication is brough forward as the work result.