Comparison of different taxation models on cross-border supply chain decisions: Considering disruption forecast and cost differences

Abstract

In this paper, we consider disruption forecast and channel operating cost differences in a cross-border dual-channel supply chain and construct a dual-channel supply chain strategy game model under different taxation models. We compare the optimal pricing, order volume and profits of supply chain members under four strategies. We also analyze how the tariff rate and channel cost difference coefficient affect each member’s optimal decisions and profits. First, we find that under different taxation models, the impact of tariff rate on optimal order volume is different, but it always has a negative effect on optimal wholesale price. Second, in some threshold intervals of the channel cost difference coefficient, the size relation of optimal pricing is consistent with order volume under either taxation model, regardless of whether to wait for a disruption forecast. Finally, when the supply chain disruption probability and channel cost difference coefficient take different combinations, with the change in tariffs, the e-retailer and overseas manufacturer tend to adopt different strategies.