Value‐added service decision and coordination under fresh produce e‐commerce considering order cancelation

Yuyang Tan · Chunxiang Guo · Dong Cai

13 citations0/0 files storedManagerial and Decision Economics

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Supply Chain and Inventory Management Consumer Market Behavior and Pricing Sustainable Supply Chain Management

Abstract

Abstract This paper proposes an analytic model under fresh produce e‐commerce considering value‐added service and order cancelation behavior. We first examine the optimal prices, value‐added service decisions, and profits in the centralized and decentralized channels. Then, the revenue‐cost‐sharing contract is designed to eliminate the double marginal effect in the decentralized channel. The main findings are threefold. First, with the improvement of product quality, the optimal value‐added service may increase and then decrease in both centralized and decentralized channels. Second, compared with the centralized channel, the decentralized channel prefers a lower retail price only when both salvage value coefficient and product quality are high. Besides, the proposed revenue‐cost‐sharing contract performs well in improving the value‐added service and profits in the decentralized channel.

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References

2005Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations 2014Supply chain analysis under green sensitive consumer demand and cost sharing contract 2008Optimal Pricing and Return Policies for Perishable Commodities 2003Likelihood to abort an online transaction: influences from cognitive evaluations, attitudes, and behavioral variables 2017Pricing/service strategies for a dual-channel supply chain with free riding and service-cost sharing 2005Sell the Plant? The Impact of Contract Manufacturing on Innovation, Capacity, and Profitability 2015Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract 2010Optimal Reverse Channel Structure for Consumer Product Returns

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