Abstract
In the context of sharing economy, a manufacturer can source from two alternative channels: sharing and traditional, when facing production capacity constraints and sustainably conscious consumers. The aim of the paper is to analyze channel selection and pricing strategies of the manufacturer for achieving sustainable operations, to investigate the operations of the platform regarding charging modes, access requirements, and commission rates in different stages of development, and to discuss the interaction among all stakeholders for sustainability in the whole system. The game-theoretic approach is adopted. The results provide references for decisions of the manufacturer and surplus production capacity supplier to join in the sharing, as well as corresponding optimal pricing strategies, which guides platforms to keep a balance between profitability and attracting participants by relatively low access requirements and commission rates. Moreover, developing platforms prefer to charge suppliers and set low access requirements while relatively developed platforms tend to charge bilateral sides or manufacturers and set high access requirements. Charging the manufacturer encourages the bilateral participation of the platform most. In addition, as charging mode changes, the trend of changes in consumer surplus and social welfare is the same as that in the market share of products from the sharing channel.
Highlights
The definition of supply chain management is the management of physical, logical, and financial flows in networks of intra- and inter-organizational relationships to add value and achieve consumer satisfaction [1,2]
This paper considered a supply chain composed of a single manufacturer (M), a production capacity sharing platform (P), a surplus production capacity supplier (S) linked to the platform, and a traditional supplier (T)
This paper focused on the design of production capacity sharing mechanism from the perspective of sustainable operations
Summary
The definition of supply chain management is the management of physical, logical, and financial flows in networks of intra- and inter-organizational relationships to add value and achieve consumer satisfaction [1,2]. The traditional supply chain management is conducted in the operation process that can be abstracted as “take-make-consume-disposal” or “extract-produce-use-dump material and energy flow”, which raises the sustainability problems [3]. The issues of sustainable operations expand the scope of traditional supply chain management and focus on the management of products, information, capital, and cooperation among members to achieve sustainable goals in society, economy, and ecology dimensions [4,5].
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