Logistics sharing mode selection and pricing strategies in platform supply chain

Chi ZHOU, Yawen XU*, Jing YU

*Corresponding author for this work

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)Researchpeer-review

Abstract

The development of e-commerce brings development opportunities to the manufacturer, prompting them to use logistics services to improve market competitiveness in a competitive marketplace. The high-quality service of self-operated logistics undoubtedly brings great benefits to the manufacturer, so it is crucial that e-commerce platforms are willing to share their self-operated logistics systems under what circumstances. In this paper, a platform supply chain system consisting of a manufacturer, an e-commerce platform, and a third-party logistic provider is considered, and a Stackelberg game model is developed to study the optimal decision of supply chain members under the logistics non-sharing mode and the logistics sharing mode. The study finds that the increase in the research logistics service fee leads to a corresponding increase in the logistics service level, as well as an increase in the sales price and a decrease in the wholesale price. And an increase in the commission rate only leads to an increase in the self-operated logistics service level. But the impact of these two parameters on the profitability of the members of the platform supply chain is non-monotonically variable. When the logistics service sensitivity coefficient is small, and when the logistics service sensitivity coefficient is large and the commission rate is high, the platform and the manufacturer achieve a win-win situation under the logistics sharing mode.

Original languageEnglish
Title of host publicationProceedings of the 2023 IEEE 7th Information Technology and Mechatronics Engineering Conference (ITOEC)
EditorsBing XU, Kefen MOU
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages606-610
Number of pages5
ISBN (Electronic)9798350334197
ISBN (Print)9798350334227
DOIs
Publication statusPublished - 15 Sept 2023
Externally publishedYes
Event7th IEEE Information Technology and Mechatronics Engineering Conference, ITOEC 2023 - Chongqing, China
Duration: 15 Sept 202317 Sept 2023

Conference

Conference7th IEEE Information Technology and Mechatronics Engineering Conference, ITOEC 2023
Country/TerritoryChina
CityChongqing
Period15/09/2317/09/23

Bibliographical note

Publisher Copyright:
© 2023 IEEE.

Keywords

  • game theory
  • logistics mode selection
  • platform sharing
  • pricing strategy
  • supply chain management

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