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.

CAPACITY SHARING STRATEGY WITH SUSTAINABLE REVENUE-SHARING CONTRACTS

This paper develops a duopoly model to analyse capacity sharing strategy and the optimal revenue-sharing contract under a two-part tariff and examines the effects of capacity sharing, cost, and sharing charges in three scenarios. The paper uses the two-part tariff method and adds a more realistic assumption of incremental marginal costs to improve the research on capacity sharing strategies. The results show that capacity constraints affect the sustainable development of firms. A sustainable revenue-sharing contract can create a win-win situation for both firms and promote capacity sharing. Capacity sharing, cost, and the revenue-sharing rate have different impacts in different scenarios; the optimal revenue-sharing rate and fixed fee can be determined to maximise the profits of firms that share capacity. However, capacity sharing may not improve social welfare.

Assessing the coordinated revenue-sharing contract of China’s farmer-supermarket direct-purchase model

China began connecting farmers directly with supermarkets 10 years ago, when they were at a disadvantage and forced to sell products at low prices, as unstable cooperation among supply chain participants led to inequitable distribution of revenue. Revenue-sharing contracts offer a risk-sharing approach to ensure supply chain coordination and optimize profit for all. Research on short life cycle products with revenue-sharing contracts assume stable prices or investigate the effects of revenue-sharing contracts on supply chain coordination. This study introduced a revenue-sharing contract model into a ‘farmer-supermarket direct-purchase’ supply chain, considering price fluctuation and retail promotional efforts, stochastic market demand, among other factors. Revenue-sharing contracts achieved long-term stability in supply chain coordination, all participants obtained more profits, and the size of revenue-sharing parameter depends on the position and bargaining power of all participants. A case study on Tianhong supermarket and Nanxia farmer cooperative verified these findings, eliciting practical implications for professionals and policymakers.

Research on Supply Chain Cooperation Optimization Model of Electric Heating Market Replacing Traditional Coal Power Generation

Objectives: The rapid development of central heating service in China mostly uses fossil fuels such as coal for production. The market competitiveness of new energy such as wind and solar energy to replace coal to produce heat energy for heating is relatively poor. Under the multiple requirements of energy security, ambient air quality and low carbon, electric heating is practicable because of its flexible use, adapts to the differential demand of consumers for heat, which energy supply can improve efficiency with the progress of power generation technology and so on. On the basis of case study data and results of residential users, companies and public buildings adopting electric heating technology, the analysis of consumer demand, supply chain structure and market relationship in China's electric heating market, this paper discusses the supply chain cooperation model by using revenue sharing contract mode. The results show that the performance of the benefit sharing ratio in the data simulation is acceptable when the revenue sharing contract is used in the supply chain. This model can promote the spontaneous and effective operation of the market, and help the local government in China to get rid of the embarrassment of the continuous subsidy.

Supply Chain Contract Choice with Different Behavior Preferences of Retailer

Retailer may exhibit irrationality when facing the risk of demand uncertainty; therefore, we consider four retailer behavioral preferences: risk neutral (RN), waste aversion (WA), stockout aversion (SA), and stockout-waste aversion (SW). The decision-making and contract choice of upstream and downstream enterprises in cases where demand depends on supplier’s effort are studied. The results show that if the retailer has only SA or RN preferences, then the supplier prefers to choose a wholesale price contract, while the retailer does the opposite, if the retailer has only WA, then the supplier prefers to choose a revenue sharing contract, but the retailer’s contract choice depends on the degree of waste aversion, and if the retailer has SW, then the contract choice of upstream and downstream enterprises is related to the degree of waste aversion and stockout aversion.

Profit Seeking versus Survival Seeking: Green Investment of Capital-Constrained Suppliers with Incentive Contracts

This study explores a supply chain with a capital-constrained startup supplier who invests in product greenness and a manufacturer who sells green products to consumers under demand uncertainty. Green investment of the supplier is supported by the manufacturer with two incentive contracts: (i) investment- and (ii) revenue-sharing contracts. Profit- and survival-seeking objectives are considered for the startup supplier. Results show that the profit-seeking supplier increases its product greenness if demand uncertainty rises, whereas the survival-seeking supplier increases its product greenness if its capital constraints increase. Compared with the commonly used wholesale price contract, investment- and revenue-sharing contracts can help facilitate the “win-win” supply chain cooperation for improving product greenness. If the profit-seeking supplier cooperates with the manufacturer, the investment-sharing contract is preferred as the demand uncertainty increases. If a survival-seeking supplier cooperates with the manufacturer, the revenue-sharing contract is preferred as the capital constraint increases. Overall, the revenue-sharing contract is preferred given the high attractiveness of the green investment. By extending the discussion into two periods, the revenue-sharing contract will be preferred in the survival-seeking case because the cooperation can continue in a large parameter space.