Research on Coordination Complexity of E-Commerce Logistics Service Supply Chain

With the rapid growth of E-commerce business, logistics service, especially the last-mile distribution, has become one bottleneck, which leads to the rise of coordination complexity of logistics service supply chain (LSSC). This research, based on Stackelberg’s game theory, studies the coordination of a new three-echelon LSSC consisting of an E-commerce mall, an express company, and a terminal distribution service provider and investigates the optimal solutions and profits for each party within the semicentralized and centralized LSSC alliances, respectively. To accomplish this, it firstly shows that the three-echelon LSSC can lead to global optimum under the centralized decision-making scenario and then deploys the contract coordination schemes, including revenue sharing, cost sharing, and unit delivery price contracts, in three semicentralized alliances, so as to achieve the same performance of the centralized decision-making scenario, in which each party in the LSSC can achieve the win-win situation. Finally, numerical examples are provided to illustrate the feasibility and the effectiveness of the proposed coordination strategies. This study enriches the coordination theory in the field of LSSC and provides managerial insights for decision makers in LSSC.

[1]  Dilip Chhajed,et al.  Direct Marketing, Indirect Profits: A Strategic Analysis of Dual - Channel Supply - Chain Design , 2003, Manag. Sci..

[2]  Kun Qian,et al.  The Complexity and Simulation of Revenue Sharing Negotiation Based on Construction Stakeholders , 2018, Complex..

[3]  Q. Pang,et al.  Coordinating Three-Level Supply Chain under Disruptions Using Revenue-Sharing Contract with Effort Dependent Demand , 2016 .

[4]  Hongyan Dai,et al.  Capital-constrained supply chain with multiple decision attributes: Decision optimization and coordination analysis , 2019, Journal of Industrial & Management Optimization.

[5]  Mir Saman Pishvaee,et al.  Fresh-product supply chain coordination and waste reduction using a revenue-and-preservation-technology-investment-sharing contract: A real-life case study , 2019, Journal of Cleaner Production.

[6]  Wenliang Bian,et al.  The Revenue-sharing Model of Logistics Service Supply Chain for Online Seafood Retailing , 2019, Journal of Coastal Research.

[7]  Jian Li,et al.  Coordination of supply chain with a dominant retailer under government price regulation by revenue sharing contracts , 2017, Ann. Oper. Res..

[8]  Jing Zhao,et al.  Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions , 2017, Ann. Oper. Res..

[9]  Huajun Tang,et al.  Coordination Analysis of Revenue Sharing in E-Commerce Logistics Service Supply Chain With Cooperative Distribution , 2019, SAGE Open.

[10]  Tao Pang,et al.  Coordination contracts for a supply chain with yield uncertainty and low-carbon preference , 2018, Journal of Cleaner Production.

[11]  Qinghua Pang,et al.  Coordinating Three-Level Supply Chain by Revenue-Sharing Contract with Sales Effort Dependent Demand , 2014 .

[12]  Pan Liu,et al.  Investment decision-making and coordination of a three-stage supply chain considering Data Company in the Big Data era , 2018, Ann. Oper. Res..

[13]  J. Spengler Vertical Integration and Antitrust Policy , 1950, Journal of Political Economy.

[14]  Zhi Pei,et al.  Retail services and firm profit in a dual-channel market , 2009 .

[15]  Qingguo Bai,et al.  Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items , 2017 .

[16]  Xu Chen,et al.  Coordination of random yield supply chains with improved revenue sharing contracts , 2016 .

[17]  Wei Huang,et al.  Introduction of a second channel: Implications for pricing and profits , 2009, Eur. J. Oper. Res..

[18]  Jin Qin,et al.  A Coordinated Revenue-Sharing Model for a Sustainable Closed-Loop Supply Chain , 2018, Sustainability.

[19]  Amy Z. Zeng,et al.  Procurement and coordination under imperfect quality and uncertain demand in reverse mobile phone supply chain , 2019, International Journal of Production Economics.

[20]  Huajun Tang,et al.  Game Theoretic Analysis of Pricing and Cooperative Advertising in a Reverse Supply Chain for Unwanted Medications in Households , 2017 .

[21]  Zhimin Huang,et al.  Coordination and performance analysis for a three-echelon supply chain with a revenue sharing contract , 2017, Int. J. Prod. Res..

[22]  Jie Min,et al.  The shelf space and pricing strategies for a retailer-dominated supply chain with consignment based revenue sharing contracts , 2020, Eur. J. Oper. Res..

[23]  Lichao Feng,et al.  Coordinating Pricing and Advertising Decisions for Supply Chain under Consignment Contract in the Dynamic Setting , 2018, Complex..

[24]  C. Mondal,et al.  Analysing a closed-loop supply chain with selling price, warranty period and green sensitive consumer demand under revenue sharing contract , 2018, Journal of Cleaner Production.

[25]  Jianxiong Zhang,et al.  Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract , 2015 .

[26]  J. Heydari,et al.  A revenue sharing contract for reverse supply chain coordination under stochastic quality of returned products and uncertain remanufacturing capacity , 2018, Journal of Cleaner Production.

[27]  Yao Song,et al.  Research on Pricing and Coordination Strategy of a Sustainable Green Supply Chain with a Capital-Constrained Retailer , 2018, Complex..

[28]  Bibhas C. Giri,et al.  Coordinating a multi-echelon supply chain under production disruption and price-sensitive stochastic demand , 2019, Journal of Industrial & Management Optimization.

[29]  Raymond Chiong,et al.  Supply Chain Coordination with a Risk-Averse Retailer and a Combined Buy-Back and Revenue Sharing Contract , 2019, Asia Pac. J. Oper. Res..

[30]  Shengju Sang Revenue Sharing Contract in a Multi-Echelon Supply Chain with Fuzzy Demand and Asymmetric Information , 2016, Int. J. Comput. Intell. Syst..

[31]  Yang Liu,et al.  Strategic dual-channel pricing games with e-retailer finance , 2020, Eur. J. Oper. Res..

[32]  Mir Saman Pishvaee,et al.  Fresh-Product Trade Management Under Government-Backed Incentives: A Case Study of Fresh Flower Market , 2019, IEEE Transactions on Engineering Management.

[33]  Huihui Song,et al.  Green supply chain game model and analysis under revenue-sharing contract , 2018 .

[34]  Ata Allah Taleizadeh,et al.  Coordination of a two-echelon supply chain in presence of market segmentation, credit payment, and quantity discount policies , 2018, Int. Trans. Oper. Res..

[35]  Ling Liang,et al.  The revenue and cost sharing contract of pricing and servicing policies in a dual-channel closed-loop supply chain , 2018, Journal of Cleaner Production.

[36]  Pang SUPPLY CHAIN COORDINATION USING REVENUE-SHARING CONTRACT WITH DISTRIBUTOR ’ S EFFORT DEPENDENT DEMAND , 2015 .

[37]  Pandu R. Tadikamalla,et al.  Flexible contract design for VMI supply chain with service-sensitive demand: Revenue-sharing and supplier subsidy , 2017, Eur. J. Oper. Res..

[38]  Huajun Tang,et al.  Analysis of advertising and a points-exchange incentive in a reverse supply chain for unwanted medications in households based on Game Theory , 2019, International Journal of Production Economics.

[39]  John M. Rose,et al.  Transport and logistics challenges for China: Drivers of growth, and bottlenecks constraining development , 2015 .

[40]  Fei Ye,et al.  Coordination for contract farming supply chain with stochastic yield and demand under CVaR criterion , 2020, Oper. Res..