Abstract:This paper is concerned with a one-supplier-one-retailer supply chain in which the additional service can be offered to its customers by the supplier or the retailer or both of them. We consider three different channel structures based on who provide(s) the customer service. We show that, both the supplier and the retailer can be always benefited no matter who provides service in the Stackelberg game. Given that there is only on member who can provide service, we identify the conditions under which who is willing to provide service. Furthermore, under the Staekelberg game framework, the bes't strategy is that both the supplier and the retailer provide service. While under the Nash game framework , the retailer is willing to act as a Stackelberg follower under certain