Open AccessCooperation Strategy of Retailer Drop-Shipping in Dual-Channel Supply Chain under Non-Cooperative Game
Author(s) -
Fang Huang,
Shoudong Han
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/688/5/055002
Subject(s) - business , commission , supply chain , drop (telecommunication) , channel (broadcasting) , dual (grammatical number) , industrial organization , commerce , marketing , telecommunications , computer science , finance , art , literature
Focusing on dual-channel supply chain involving both traditional channel and e-commerce channel, this paper analyses the supply chain decision in retailer drop shipping and manufacturer drop shipping, explores the conditions for the manufacturer and the retailer to select retailer drop shipping, and identifies their cooperative strategies in retailer drop shipping. The results show that the cooperative interval of drop shipping commission will expand with the increase in the market share of e-commerce channel, and vice versa. However, the expansion or shrink of the market capacity does not necessarily lead to increase or decrease in the drop shipping commission.