scholarly journals E-Commerce Supply Chain Models under Altruistic Preference

Mathematics ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 632
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Wenquan Dong
Keyword(s):  
Supply Chain ◽  
Service Level ◽  
Third Party ◽  
Professional Service ◽  
Sales Price ◽  
Decentralized System ◽  
Optimal Decisions ◽  
Coordination Contract ◽  
Decentralized Model ◽  
Centralized Model

This paper reviews the decisions, coordination contract, and altruistic preference of an e-commerce supply chain (eSC) composed of a manufacturer and a third-party e-commerce platform (platform). The research derives optimal decisions in a decentralized model with altruistic preference; it is indicated that altruistic preference can help increase the sales price and sales service level. Although the platform’s altruistic preference is not beneficial to its own profits, it can help increase the manufacturer’s profits. Moreover, when the degree of altruistic preference is kept within a limit, the profit of the decentralized system is higher in a model with altruistic preferences, which indicates that altruistic preference can contribute toward maintaining a friendly, harmonious, and cooperative a relationship between the platform and manufacturers. Contrary to a traditional offline supply chain, where the sales price is the lowest in the centralized model, the sales price is highest in a centralized eSC model. In the proposed coordination contract, the platform with a certain degree of altruistic preference offers zero-commission sales service and charges a certain amount for a fixed professional service fee. The proposed contract is more applicable to products whose market demands are less affected by sales prices and more affected by the sales service level.

scholarly journals Different Dominant Models and Fairness Concern of E-Supply Chain

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Yan Ge ◽  
Jing Li
Keyword(s):  
Supply Chain ◽  
Service Level ◽  
Sales Price ◽  
Optimal Decisions ◽  
Shopping Experience ◽  
Dominant Parties ◽  
Network Platform ◽  
Fairness Concern ◽  
Product Sales ◽  
The Impact

In this study, we examine the impact of the dominant enterprise’s fairness concern on decisions in e-supply chains. Considering that the network platform’s service level obviously influences product sales, an e-supply chain consisting of a single manufacturer and a single network platform is constructed. In this setting, four models of whether fairness concern is considered by the different dominant parties are investigated, and optimal decisions of the four models are compared and analyzed to study the impact of fairness concern. The findings show that when fairness concern is not taken into account, the profits when enterprises are dominating system are higher than when they are not dominating system. When fairness concern is considered, the dominant enterprise’s fairness concern is beneficial to increase the subordinate enterprise’s profit, but it will reduce its profit. And when the network platform dominates system and considers fairness concern, the sales price and the service level are the highest, indicating that consumers can get an enjoyable shopping experience. To sales price, it is negatively correlated with the fairness concern coefficient if manufacturer dominates the system, while it is positively correlated with the fairness concern coefficient if network platform dominates the system. Regardless of who has the fairness concern, fairness concern can improve the service level and increase consumer stickiness.

scholarly journals New Product Presale Strategies considering Consumers’ Loss Aversion in the E-Commerce Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Chongfeng Lan ◽  
Jianfeng Zhu
Keyword(s):  
Supply Chain ◽  
Correlation Coefficient ◽  
Loss Aversion ◽  
Strategic Behavior ◽  
New Products ◽  
New Product ◽  
Service Level ◽  
Expected Profit ◽  
Risk Averse ◽  
Optimal Decisions

New product presale is a strategic behavior of manufacturers to transfer inventory risks to consumers. The research purpose of this paper is to examine the presale discount, inventory, and service level decisions in an e-commerce supply chain, where the first period is the presale period and the second is the selling period for the new product. First, consumers were divided into two types—those who are risk averse and those who are not. Then, considering different presale discounts applied for new products, three presale strategy models were discussed: no-presale strategy, presale strategy with a moderate discount, and complete presale strategy, and the optimal decisions of e-commerce supply chain members were obtained under different valuations of the new product by consumers. Finally, the effects of the correlation coefficient between the numbers of the two types of consumers, the loss aversion degree of consumers, and the marginal profit in the sales period on the optimal discounted price and the maximum expected profit were analyzed. The conclusions of this article show that the presale strategy is not always optimal but depends on the parameters of the market and the type of consumers. For example, when the correlation coefficient between the two types of consumers is high, it is more profitable for the suppliers if they choose the presale strategy with a moderate discount, while e-commerce platforms tend to adopt the no-presale strategy. The optimal discounted price in the complete presale case is not necessarily lower than that in the moderately discounted presale case. If the marginal profit is high in the normal sales period or consumers are less averse to losses, suppliers are more likely to adopt the complete presale strategy. The research conclusions provide some theoretical reference for companies in the development of new product presale strategies in the e-commerce supply chain.

scholarly journals The Optimal Pricing of Dual-Channel Supply Chain with the Third Party Product Recovery and Sales Effort

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-18 ◽  
Author(s):  
Limin Wang ◽  
Qiankun Song ◽  
Zhenjiang Zhao
Keyword(s):  
Supply Chain ◽  
Product Recovery ◽  
Third Party ◽  
Optimal Pricing ◽  
The Third ◽  
Dual Channel ◽  
Retail Channel ◽  
The Third Party ◽  
Dual Channel Supply Chain ◽  
Decentralized Model

The optimal pricing of dual-channel supply chain with the third party product recovery and sales effort is considered in this paper. The optimal selling pricing of direct channel and retail channel in the forward supply chain and the optimal collection pricing of retail channel and the third party in the backward supply chain are given for the general case under the centralized and decentralized model. Then, the effect of sales effort of the retailer and the optimal pricing strategy with sales effort under the centralized and decentralized model are provided and analyzed. Finally, the comparative analysis of four situations is carried out by numerical results.

scholarly journals ReCellular Inc: Managing Demand Uncertainty in Closed-Loop Remanufacturing

2021 ◽  
Author(s):  
Akshay Mutha ◽  
Saurabh Bansal ◽  
V. Daniel R. Guide
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Closed Loop ◽  
Learning Experience ◽  
Third Party ◽  
Low Grade ◽  
Optimal Decisions ◽  
Closed Loop Supply Chains ◽  
Specific Factors

The modeling-based case study is useful for two purposes: introduce closed-loop supply chains and highlight and model some of its unique aspects that the traditional newsvendor formulation does not capture. The case focuses on a third-party remanufacturer (3PR) who buys used cellphones in different quality grades in anticipation of demand. Phones in high grade have been used gently—they have a high acquisition cost but low remanufacturing cost. Low-grade phones have been used extensively—they are cheaper to acquire but have a higher remanufacturing cost. Medium-grade phones have intermediate acquisition and remanufacturing costs. The 3PR needs to trade off these two costs and determine which grade(s) of used phones to buy. The 3PR restores all phones to the same like-new standard during remanufacturing. Extensive use of the case in supply chain management courses shows that in the absence of a mathematical model, students systematically deviate from the optimal decisions because of contextual features. Overall, students believed the case was challenging and that it provides a valuable learning experience, both as an exposure to the closed-loop supply chain domain as well as developing models with industry-specific factors.

Competition in the Multi-Channel Supply Chain with a Self-Logistics-type E-Platform

2020 ◽  
Vol 13 (1) ◽  
pp. 32-72
Author(s):  
Yue Wen ◽  
Yongbo Wang ◽  
MingJun Shi
Keyword(s):  
Supply Chain ◽  
The Self ◽  
Third Party ◽  
Logic Tree ◽  
Channel Conflict ◽  
The Third ◽  
Optimal Decisions ◽  
System Equilibrium ◽  
New Form ◽  
Key Questions

Self-logistics-type e-platforms have enjoyed a rapid growth. In sales, some of them only serve as a service provider, matching buyers with sellers. But some of them have become a seller, selling directly to the customer. In logistics, some of them do not open the self-logistics to the third-party sellers, but some of them do open. As a result, a new form of channel conflict emerged. Therefore, the authors consider a self-logistics-type e-platform, who can sell directly to consumers; and a single retailer, who sells through the e-platform without self-logistics, but who may choose to contract with e-platform to deliver its products through the self-logistics. Thus, key questions for the e-platform are whether to sell directly to the customer; if they sell, the decision is whether to deliver the products through self-logistics and whether to open the self-logistics. To solve these questions, the optimal decisions of the retailer and self-logistics-type e-platforms and the system equilibrium results are analyzed under different situations. Finally, the logic tree to get the overall equilibrium is obtained.

Replenishment decision and coordination contract in cluster supply chain

2019 ◽  
Vol 119 (6) ◽  
pp. 1374-1399 ◽  
Author(s):  
Bo Yan ◽  
Xiaoxu Chen ◽  
Yanping Liu ◽  
Chang Xia
Keyword(s):  
Supply Chain ◽  
Transportation Cost ◽  
Revenue Sharing ◽  
Third Party ◽  
Transport Cost ◽  
Content Type ◽  
Cost Factor ◽  
Revenue Sharing Contract ◽  
Coordination Contract ◽  
Milk Run

Purpose The cluster supply chain is widely used in the professional towns in China, and improves the competitiveness of small and medium enterprises through integrating the supply chain with the industrial cluster. The paper aims to discuss this issue. Design/methodology/approach This paper studies a cluster supply chain under vendor managed inventory (VMI) system, which includes vendors, third-party logistics (TPL) enterprises and retail enterprises, and aims to study the replenishment decisions and coordination contracts in the supply chain. The economic order quantity model is applied to analyze the influence of marginal transportation cost factor under two replenishment modes – direct delivery and milk-run delivery, in order to find out the optimal replenishment decisions corresponding to different marginal transportation cost factors. And then, the revenue sharing contract is used to identify the change of profits of enterprises in the supply chain before and after the coordination contract. Findings It is concluded that the marginal transportation cost factor is an important factor influencing the replenishment decision especially in milk-run delivery, and the introduction of the revenue sharing contract can improve the revenue in the supply chain. Originality/value This is the first study that explores the relationship between a single transport cost and a single transport batch of cluster supply chain in centralized VMI & TPL system. The conclusions of the study have certain theoretical significance for the decision making and coordination of cluster supply chain.

scholarly journals Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing

2021 ◽  
Vol 13 (20) ◽  
pp. 11357
Author(s):  
Kai Liu ◽  
Chunfa Li ◽  
Runde Gu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Service Level ◽  
Optimal Choice ◽  
Third Party ◽  
Optimal Pricing ◽  
Closed Loop Supply Chain ◽  
Pricing Decisions ◽  
Logistics Service ◽  
The Third

With the continuous development of e-commerce, it has become normal for the manufacturer to sell products and to collect used products through e-commerce platforms (platform for short). We consider an electronic closed-loop supply chain (E-CLSC) where we composed a manufacturer with remanufacturing capability and a platform that can provide logistics services. The purpose of this paper is to address whether the manufacturer should directly collect used products from the consumer under the platform. Specifically, we have developed four game models, namely model N (no collection), model M (the manufacturer collects), model E (the platform collects), and model T (the third-party collects) and derived the optimal pricing decisions, logistics service level, and collection rate for E-CLSC members. We found that remanufacturing used products is conducive to increasing the profits of the manufacturer and the platform as well as to increasing the utility of the consumer. Under the same conditions, for the manufacturer, the platform, and the consumer, the optimal choice is that the manufacturer directly collects the used products from the consumer. If the manufacturer is unable to establish an effective collection channel, he should consider outsourcing to a contractor and should consider the platform to be under the same conditions. Numerical examples are also given to verify the proposed results.

Dynamic cooperative advertising strategy in OAO supply chain with customer return

2020 ◽  
Vol 54 (5) ◽  
pp. 1537-1553
Author(s):  
Duanyang Cao ◽  
Xumei Zhang ◽  
Lingli Yang ◽  
Jian Xiao
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Stackelberg Game ◽  
Influence Factors ◽  
Third Party ◽  
Direct Channel ◽  
Decentralized System ◽  
Optimal Advertising ◽  
Retail Channel ◽  
Customer Returns

Nowadays many manufacturers are increasingly adopting their own online direct channel and the offline retail channel to sell their products as the quick development of e-commerce and third party logistics. To gain more and more market share, the manufacturer and the retailer implement unconditional return strategy, which does not affect secondary sales. We build a differential game model for the optimal advertising and the optimal advertising cost sharing proportion for centralized and decentralized OAO (Online and Offline) supply chain considering customer returns rates. We further analyze how the returns rates affect the optimal decisions of the manufacturer and the retailer. The results show that the returns rates, the brand reputation and the influence factors of retail channel goodwill on demand of online direct channel strongly influence the optimal advertising decisions. Furthermore, the retailer does not support for the manufacturer advertising efforts in Stackelberg game. Compared with the centralized OAO supply chain, the decentralized system results in channel inefficiency. To coordinate the channels, we design a two-way advertising cost-sharing contract. By this contract, each member of the supply chain reaches a win-win situation and is willing to cooperate. Numerical studies verify the conclusions of this paper.

scholarly journals Pricing and Ordering Decisions in a Retailer Dominant Channel Involving a Third-Party Logistics Provider

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-15
Author(s):  
Xiaoxu Chen ◽  
Peng Xu ◽  
Thomas Walker ◽  
Shengzhong Huang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Service Level ◽  
Third Party ◽  
Third Party Logistics ◽  
Supply Chain System ◽  
Numerical Illustration ◽  
Equilibrium Pricing ◽  
Logistics Service ◽  
Dominant Retailer

This paper theoretically investigates pricing and ordering decisions in a supply chain system comprised of a dominant retailer, a manufacturer, and a third-party logistics (3PL) provider. The paper introduces the logistics service level as an additional variable and obtains the equilibrium pricing and ordering decisions of the supply chain members by applying game theory. Our analysis focuses on the effects of three sensitivity coefficients, i.e., the retailer’s order quantity to the manufacturer’s wholesale price, the 3PL’s logistics service price, and the logistics service level on equilibrium decisions. In addition, we explore the effect of the logistics investment cost and the market risk on equilibrium decisions. Finally, we present a numerical illustration to validate our theoretical results and explore their effects on channel performance.

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