Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.

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Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer

Complexity ◽

10.1155/2019/1484372 ◽

2019 ◽

Vol 2019 ◽

pp. 1-23 ◽

Cited By ~ 4

Author(s):

Lufeng Dai ◽

Xifu Wang ◽

Xiaoguang Liu ◽

Lai Wei

Keyword(s):

Supply Chain ◽

Stackelberg Game ◽

Pricing Strategy ◽

Pricing Strategies ◽

Equilibrium Solutions ◽

Channel Competition ◽

Dual Channel ◽

Fairness Concerns ◽

Dual Channel Supply Chain ◽

The Impact

Manufacturers add online direct channels that inevitably engage in channel competition with offline retail channels. Since price is an important factor in consumers' choice of purchasing channel, pricing strategy has become a popular topic for research on dual-channel competition and coordination. In contrast to previous research on pricing strategies based on the full rationality of members, we focus on the impact of retailers' fairness concerns on pricing strategies. In this study, the hybrid dual-channel supply chain consists of one manufacturer with a direct channel who acts as the leader and a retailer who acts as the follower. First, we use the Stackelberg game approach to determine the equilibrium pricing strategy for a fair caring retailer. Simultaneously, we consider a centralized dual-channel supply chain as the benchmark for a comparative analysis of the efficiency of a decentralized supply chain. Furthermore, we study pricing strategies when the retailer has fairness concerns and determine the complete equilibrium solutions for different ranges of the parameters representing cross-price sensitivity and fairness. Finally, through numerical experiments, the pricing strategies, the profit and utility of the manufacturer and retailer, and the channel efficiency of the supply chain are compared and analysed for two scenarios. We find that fairness concerns reduce the manufacturer's profits, while for the most part, the retailers’ profit can be improved; however, the supply chain cannot achieve complete coordination.

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Coordination Mechanism of Dual-Channel Supply Chains Considering Retailer Innovation Inputs

Sustainability ◽

10.3390/su13020813 ◽

2021 ◽

Vol 13 (2) ◽

pp. 813 ◽

Cited By ~ 1

Author(s):

Wensheng Yang ◽

Yinyuan Si ◽

Jinxing Zhang ◽

Sen Liu ◽

Andrea Appolloni

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Supply Chains ◽

Stackelberg Game ◽

Operational Efficiency ◽

Coordination Mechanism ◽

Market Demand ◽

Dual Channel ◽

Physical Channel ◽

Retail Prices

In response to the online channels established by manufacturers, physical retailers are starting to offer innovative services, which will intensify conflicts between manufacturers and retailers. Considering that the conflict will affect the operation efficiency and sustainable development of the supply chain, the coordination mechanism of a dual-channel supply chain has been established. In this study, we construct the Stackelberg game model based on consumer utility theory to analyze the complex mechanism of retailers’ innovation input level affecting supply chain operation and design the double coordination mechanism. The results show that: (1) an optimal combination of wholesale prices, retail prices and innovation input levels can optimize the operational efficiency of the supply chain, (2) Noncooperation among channel members affects the retailer’s product pricing, decreases the market share of the physical channel and increases the market demand of manufacturers, (3) The dual coordination mechanism can alleviate channel conflicts, which can improve the operational efficiency of the supply chain. This study provides several insights on the theory of organizational coordination and sustainable development in conflicts of dual-channel supply chains.

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Pricing decision of a dual-channel supply chain with different payment, corporate social responsibility and service level

RAIRO - Operations Research ◽

10.1051/ro/2021187 ◽

2021 ◽

Author(s):

Baogui Xin ◽

Le Zhang ◽

Lei Xie

Keyword(s):

Supply Chain ◽

Interest Rate ◽

Supply Chains ◽

Stackelberg Game ◽

Service Level ◽

Optimal Decision ◽

Payment Methods ◽

Dual Channel ◽

Pricing Decision ◽

Dual Channel Supply Chain

Strategies such as price, CSR, and service have an important impact on enterprises and supply chains. This paper proposes a two-echelon dual-channel supply chain composed of a manufacturer and a retailer. Considering the product pricing, CSR level, and service level in the supply chain, this paper employs the Stackelberg game to depict supply chain participants' optimal decisions and analyze the influence of explanatory variables on the optimal decision with retailer's payment methods. The results state that market share, service level, CSR, and financing interest rate significantly impact the pricing decision of all participants in the supply chain. In addition, strategies of CSR level and service level are also affected by the discount rate of advance payment, financing interest rate, return on investment, and opportunity cost rate. This paper incorporates CSR and service level into the objective function, considers a variety of retailers' payment methods, enriches the supply chain's pricing model, and is of great value to scientific decision-making of enterprises and sustainable development of supply chains.

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Comparison of Dual-Channel Supply Chain Structures: E-Commerce Platform as Different Roles

Mathematical Problems in Engineering ◽

10.1155/2016/3831624 ◽

2016 ◽

Vol 2016 ◽

pp. 1-10 ◽

Cited By ~ 1

Author(s):

Cong Wang ◽

De-li Yang ◽

Zhao Wang

Keyword(s):

Supply Chain ◽

Social Welfare ◽

Stackelberg Game ◽

Consumer Surplus ◽

Third Party ◽

Dual Channel ◽

Dual Channel Supply Chain

E-commerce platforms can act as an e-tailer or a third-party intermediary that charge a commission and allow manufacturers to sell products on their platform directly. These two forms of dual-channel supply chain structures have different impacts on decisions and profits of manufacturers and traditional retailers. This paper establishes different Stackelberg game models for both dual-channel supply chain structures and achieves the equilibrium results. The results state that both structures can increase the consumer surplus and social welfare. More importantly, when the platform acts as an e-tailer, the manufacturer and the traditional retailer can form a “win-win” situation. Nevertheless, when the platform acts as a third-party intermediary allowing manufacturers to sell products on the platform directly, it is bound to harm the interests of the traditional retailer.

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Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences

Discrete Dynamics in Nature and Society ◽

10.1155/2019/4729358 ◽

2019 ◽

Vol 2019 ◽

pp. 1-24 ◽

Cited By ~ 2

Author(s):

Chong Xin ◽

Yunzhu Zhou ◽

Xiaochen Zhu ◽

Lin Li ◽

Xin Chen

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Technological Innovation ◽

Emission Reduction ◽

Carbon Emission ◽

Stackelberg Game ◽

Low Carbon ◽

Carbon Emission Reduction ◽

Dual Channel ◽

Channel Preferences

This paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivity are developed by considering the consumers’ segmentation. On this basis, we present two Stackelberg game models: one for each of the single- and dual-channel supply chains. In the first, the manufacturer sells low-carbon products through a traditional retailer who has a physical store, while in the second the manufacturer opens an online direct channel to compete with the traditional retailer. For the two models developed, the optimal pricing decisions, carbon emission reduction level, and profits are derived and discussed. Numerical examples are given to verify the effectiveness and practicality of the proposed models and solutions. The results show that supply chain members’ profits are affected by system parameters such as the carbon price, consumers’ low-carbon sensitivity, channel preference, etc. Furthermore, although the aforementioned parameters stimulate the manufacturer to reduce carbon emission, this does not always benefit the retailer. Comparison of the two models indicates that dual-channel selling is only the better choice for both the manufacturer and the retailer under certain conditions.

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Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Symmetry ◽

10.3390/sym10110549 ◽

2018 ◽

Vol 10 (11) ◽

pp. 549 ◽

Cited By ~ 4

Author(s):

Zilong Song ◽

Shiwei He ◽

Baifeng An

Keyword(s):

Sustainable Development ◽

Supply Chain ◽

Environmental Performance ◽

Fresh Produce ◽

Green Supply Chain ◽

Market Demand ◽

Equilibrium Solutions ◽

Sustainable Performance ◽

Dual Channel ◽

Social And Environmental Performance

This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.

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Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph17072274 ◽

2020 ◽

Vol 17 (7) ◽

pp. 2274 ◽

Cited By ~ 2

Author(s):

Dooho Lee

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Closed Loop ◽

Stackelberg Game ◽

Innovation Strategy ◽

Market Demand ◽

Green Innovation ◽

Closed Loop Supply Chain ◽

Innovation Strategies ◽

Market Leadership

As awareness of environmental protection increases worldwide, enterprises have been building their supply chains in ways that conserve natural resources and minimize the creation of pollutants. One of the practical ways to make supply chains more sustainable is for enterprises to utilize green innovation strategies and to increase resource reuse. In this work, we focus on a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a collector. In the investigated CLSC, the manufacturer and the retailer drive the green innovation strategy either individually or simultaneously to boost market demand. In the reverse flow of the CLSC, the collector is responsible for collecting consumers’ used products and transferring them to the manufacturer for remanufacturing. By combining two types of the market leadership and three types of green innovation strategies, we establish six different Stackelberg game models and solve them analytically. Through an extensive comparative analysis, we show who should have market leadership and who should drive the green innovation strategy in the CLSC. Various numerical examples are also given to support our major findings. One of our key findings suggests that the supply chain members must participate in green innovation activities at the same time to achieve a win-win scenario in the CLSC.

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A Dynamic Stackelberg Game of Supply Chain for a Corporate Social Responsibility

Discrete Dynamics in Nature and Society ◽

10.1155/2017/8656174 ◽

2017 ◽

Vol 2017 ◽

pp. 1-8 ◽

Cited By ~ 5

Author(s):

Massimiliano Ferrara ◽

Mehrnoosh Khademi ◽

Mehdi Salimi ◽

Somayeh Sharifi

Keyword(s):

Corporate Social Responsibility ◽

Supply Chain ◽

Social Responsibility ◽

Supply Chains ◽

Equilibrium Point ◽

Stackelberg Game ◽

Dynamic Game ◽

Supply Chain Performance ◽

Information Structures ◽

Corporate Social

In this paper, we establish a dynamic game to allocate CSR (Corporate Social Responsibility) to the members of a supply chain. We propose a model of a supply chain in a decentralized state which includes a supplier and a manufacturer. For analyzing supply chain performance in decentralized state and the relationships between the members of the supply chain, we formulate a model that crosses through multiperiods with the help of a dynamic discrete Stackelberg game which is made under two different information structures. We obtain an equilibrium point at which both the profits of members and the level of CSR taken up by supply chains are maximized.

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Factors affecting the diffusion of traceability practices in an imported fresh produce supply chain in China

British Food Journal ◽

10.1108/bfj-03-2021-0227 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ying Yi ◽

Phil Bremer ◽

Damien Mather ◽

Miranda Mirosa

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Diffusion Of Innovation ◽

Food Supply ◽

Fresh Produce ◽

Content Type ◽

Factors Affecting ◽

Integrated Framework ◽

Food Supply Chains ◽

Food Recalls

PurposeThe purpose of this paper is to facilitate the successful adoption of traceability technologies, such as blockchain, into food supply chains and facilitate the understanding of the barriers and enablers to their uptake by channel members' needs so that appropriate enabling strategy can be put in place.Design/methodology/approachIn this paper, an integrated framework involving five components was used as the methodology: (1) diffusion of innovation theory, (2) the innovation concept, (3) the business structure-conduct-performance paradigm, (4) legitimacy and (5) trust was developed and assessed for validity through interviewing 21 channel members, including distributors, wholesalers, Internet retailers and traditional retailers associated with a global fresh produce company's supply chain in China.FindingsBarriers negatively framing channel members' attitudes and decisions included a perceived lack of need owing to fresh produce having a short shelf life and being of low value and risk. However, the importance of traceability and the need for effective food recalls were not always understood among channel members, and distributed trust innovations were also suppressed by their lack of compatibility with the Chinese hierarchical culture.Originality/valueTo date, channel members' perception of innovations in food supply chains has not been considered in light of the components proposed in the integrated framework. The adapted framework used in this study ensured a comprehensive assessment of channel members' attitude and motivations toward traceability practices.

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Building resilience in retail supply chains: Lessons learned from COVID-19 and future pathways

Benchmarking An International Journal ◽

10.1108/bij-09-2021-0514 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Atif Saleem Butt

Keyword(s):

Supply Chain ◽

Supply Chains ◽

United Arab Emirates ◽

Cash Flows ◽

Lessons Learned ◽

Third Party ◽

Structured Interviews ◽

Cross Sectional ◽

Content Type ◽

The Impact

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.

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