scholarly journals Dual-Channel Supply Chain Coordination With BOPS and a Revenue-Sharing Contract

The omni-channel strategies buy-online-pickup-in-store (BOPS) is used to cater to customers who want a consistent service experience in different channels. In this paper, the author thinks of BOPS as an effective strategy for encouraging some online customers to switch to offline stores with high online return losses. The author first studies an omni-channel supply chain with centralized and decentralized decision making and explains why online returns hurt the supply chain with respect to the matching rate and the unit return loss. Although different channels can be operated by the same firm or different firms, the author studies how to coordinate the entire chain using a revenue-sharing contract. When online return losses are high, it is effective to adopt BOPS to reduce online return losses; otherwise there is no need to do so. Finally, the author presents numerical experiments, including a special case, and shows that in many cases, using an appropriate revenue-sharing contract under the proposed mechanism can increase the profits of the entire supply chain and its members.

Author(s):  
Wei Liu

Due to the conflict between traditional channels and electronic channels in the e-commerce dual-channel supply chain, retailers are threatened and need to be compensated in some way. Based on this, an e-commerce dual-channel supply chain coordination compensation model based on optimized genetic algorithm is designed. Based on the problem description and basic assumptions, analyze the manufacturer’s profit and the retailer’s maximum profit in the case of centralized decision-making and decentralized decision-making. The genetic algorithm is optimized by introducing a collaborative genetic operator, and the optimized genetic algorithm is used to obtain dual e-commerce channels. The maximum profit of the supply chain, so far, the model design is completed. Through comparative experiments, the optimized genetic algorithm used in the model is compared with two traditional algorithms. Experimental results show that the proposed algorithm takes shorter iteration time to solve the problem, its convergence is better, and it can effectively obtain a global optimal solution instead of a local optimal solution.


Author(s):  
Deli Wang ◽  
Wuwei Li

AbstractWith the rapid development of cross-border e-commerce, the improvement of consumer satisfaction has become the focus of cross-border e-commerce platform optimization. Relying on advanced algorithm technology, it can realize the accurate and efficient matching between massive information and users, which is conducive to improving the user experience. Based on the consideration of consumer satisfaction, this paper constructs a dual channel supply chain composed of cross-border suppliers, cross-border e-commerce enterprises, retailers and consumers and studies the revenue and cost sharing contract of the supply chain under the conditions of centralized decision and decentralized decision. The research shows that cross-border e-commerce enterprises can choose to form revenue and expenditure sharing contracts through online and offline channels, optimize decentralized decision-making, and achieve win–win cooperation among supply chain entities.


2012 ◽  
Vol 2012 ◽  
pp. 1-14 ◽  
Author(s):  
Subrata Saha ◽  
Sambhu Das ◽  
Manjusri Basu

We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models.


2019 ◽  
Vol 2019 ◽  
pp. 1-12
Author(s):  
Jiaquan Yang ◽  
Xumei Zhang ◽  
Yating Huang ◽  
Jiafu Su ◽  
Sang-Bing Tsai ◽  
...  

The dual-channel supply chain is widely adopted by main manufacturers, potentially incurring channel conflicts between the traditional retail channel which is owned by the independent retailer and the online channel which is directly managed by the manufacturer. The purpose of this paper is to deal with the scenario where channel conflicts may arise under production capacity uncertainty, when the manufacturer tends to privilege the direct selling channel over the retail selling channel. To achieve the goal, this paper establishes a Stackelberg game model consisting of a manufacturer and a retailer, studies the scenario where the manufacturer satisfies the direct selling channel first in the presence of capacity uncertainty, employs the decision optimization and the backward induction method to find the optimal inventory decision in the direct selling channel and the optimal order quantity decision making in the retail selling channel, and designs a compensation mechanism aiming to coordinate the channel conflict in the decentralized decision-making process. Results show that the optimal decisions aiming to maximize the expected profit of each supply chain member are not able to maximize the expected profit of entire dual-channel supply chain. However, when the manufacturer compensates the retailer’s profit loss based on the unsatisfied order and, in the meantime, adjusts the wholesale price to prevent the retailer which obtains the compensation from increasing order significantly, the compensation mechanism can coordinate the decision of each supply chain member, mitigate the channel conflict, maximize the expected profit of entire dual-channel supply chain, and achieve the Pareto improvement of supply chain members’ expected profit in the decentralized decision-making process.


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