Study on the decision-making and coordination of an e-commerce supply chain with manufacturer fairness concerns

Wang, Yuyan; Yu, Zhaoqing; Shen, Liang

doi:10.1080/00207543.2018.1500043

Cited by 86 publications

(44 citation statements)

References 64 publications

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“…Studies about fairness concerns showed that it had significant influence on price strategies and efficiency of supply chains [18,19]. Wang et al [20] studied decision-making and coordination of an e-commerce supply chain with manufacturer’s fairness concerns. Li et al [21] found the market shares of retailers were related to the impact of manufacturer fairness concerns on retailer profits.…”

Section: Introductionmentioning

confidence: 99%

A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors

Shi

Huang

2019

IJERPH

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In this paper, we developed a dynamic price game model for a low-carbon, closed-loop supply chain system in which (1) the manufacturer had fairness concern and carbon emission reduction (CER) behaviors, and market share and profit maximization were their objectives, and (2) the retailer showed fairness concern behaviors in market competition and provided service input to reduce return rates. The retailer recycled old products from customers, and the manufacturer remanufactured the recycled old products. The effects of different parameter values on the stability and utility of the dynamic price game model were determined through analysis and numerical simulation. Results found that an increasing customer loyalty to the direct marketing channel decreased the stable region of the manufacturer’s price adjustment and increase that of the retailer. The stable region of the system shrank with an increase of CER and the retailer’s service level, which expanded with return rates. The dynamic system entered into chaos through flip bifurcation with the increase of price adjustment speed. In the chaotic state, the average utilities of the manufacturer and retailer all declined, while that of the retailer declined even more. Changes to parameter values had a great impact on the utilities of the manufacturer and retailer. By selecting appropriate control parameters, the dynamic system can return to a stable state from chaos again. The research of this paper is of great significance to participants’ price decision-making and supply chain operation management.

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Section: Introductionmentioning

confidence: 99%

A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors

Shi

Huang

2019

IJERPH

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“…The fairness concern in traditional supply chain is different from altruistic preference in eSC, and the existing results of the fairness concern, which show that an enterprise with fairness concern can decrease the profit of the other enterprise [13], have limited guidance on the decision-making of the platform's altruistic preference. Moreover, only a few scholars pay attention to altruistic preference in the supply chain [14], let alone in the context of eSC.…”

Section: Main Conclusionmentioning

confidence: 94%

“…The manufacturer is provided with a direct sales online shop in which consumers can browse product information, purchase products, and pay money to the platform. After consumers confirm receipt of ordered products, the platform forwards payment to the manufacturer, after deducting the commission, which is a reward for providing sales services [13]. When a manufacturer enters a platform, there are two types of fees that the manufacturer has to pay.…”

Section: Problem Description and Modelingmentioning

confidence: 99%

E-Commerce Supply Chain Models under Altruistic Preference

Wang

Shen

et al. 2021

Mathematics

Self Cite

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This paper reviews the decisions, coordination contract, and altruistic preference of an e-commerce supply chain (eSC) composed of a manufacturer and a third-party e-commerce platform (platform). The research derives optimal decisions in a decentralized model with altruistic preference; it is indicated that altruistic preference can help increase the sales price and sales service level. Although the platform’s altruistic preference is not beneficial to its own profits, it can help increase the manufacturer’s profits. Moreover, when the degree of altruistic preference is kept within a limit, the profit of the decentralized system is higher in a model with altruistic preferences, which indicates that altruistic preference can contribute toward maintaining a friendly, harmonious, and cooperative a relationship between the platform and manufacturers. Contrary to a traditional offline supply chain, where the sales price is the lowest in the centralized model, the sales price is highest in a centralized eSC model. In the proposed coordination contract, the platform with a certain degree of altruistic preference offers zero-commission sales service and charges a certain amount for a fixed professional service fee. The proposed contract is more applicable to products whose market demands are less affected by sales prices and more affected by the sales service level.

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“…For example, Li et al [28] revealed that the impact of the manufacturer's fairness concern on supply chain decisions was related to the market share of retailers. Wang et al [29] believed that fairness concerns from the manufacturer reduced system efficiency. Li et al [30] held that the size of the fairness concern of both parties would affect the effectiveness of the channel, while the fairness concern of the retailer would do more damage to the stability of the system.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Decisions in Closed-Loop Supply Chains With Multiple Fairness-Concerned Collectors

Shu

Ding

2020

IEEE Access

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In the same model, both distributional fairness concern and peer-induced fairness concern are considered, so are the absolute fairness concern and the relative fairness concern. When there are multiple recycling markets, collectors attach importance not only to the fairness distribution of profit with the manufacturer (distributional fairness concern), but also to the fairness distribution of profit with the peer collector (peer-induced fairness concern). On the basis of the perspective of the collectors, this paper introduces distributional and peer-induced fairness concern into the closed-loop supply chain (CLSC). The impact of the collectors' different fairness concerns on the CLSC pricing decisions is discussed under five models.The research shows that: (1) When the manufacturer considers the collectors' fairness concern, the manufacturer's profit and distributional fairness concern coefficient change inversely, and the collectors' profit and distributional fairness concern coefficient move together, that is, the distributional fairness concern is of advantage to the collectors but not good for the manufacturer. On the contrary, the manufacturer's profit and peer-induced fairness concern coefficient move in the same direction, while the profit of the collectors and peer-induced fairness concern coefficient change in opposite direction; (2) As long as the manufacturer considers the fairness of the collectors, the profit of the collector who pays attention to both fairness is always lower than that of the collector who only concerns distributional fairness, so peer-induced fairness concern is not a self-interest behavior. However, when the appeal of the two collectors for fairness distribution is not considered by the manufacturer, peer-induced fairness concern benefits himself; (3) The two-part Tariff contract has realized the coordination of the CLSC. Additionally, our findings provide some managerial insights on the pricing decision when the collectors consider multiple fairness concerns. INDEX TERMS closed-loop supply chain, distributional fairness concern, peer-induced fairness concern, absolute fairness concern, relative fairness concern, two-part Tariff contract.

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Study on the decision-making and coordination of an e-commerce supply chain with manufacturer fairness concerns

Cited by 86 publications

References 64 publications

A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors

A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors

E-Commerce Supply Chain Models under Altruistic Preference

Pricing Decisions in Closed-Loop Supply Chains With Multiple Fairness-Concerned Collectors

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