Supply chain benefit distribution and economic sustainable development by Shapley model in smart city

Abstract

AbstractWith the rapid development of the Internet of Things, the Internet, and artificial intelligence, people's consumption patterns have undergone major changes. Consumers' consumption channels are no longer monolithic. A new retail model was born. Additionally, how to improve the revenue of the new retail supply chain and the scientific and reasonable distribution of revenue is particularly important. On this background, the concept of new retail is defined, and the principle of supply chain synergy is analysed. Stackelberg game is used to analyse and determine the optimal selling and wholesale prices of retailers and suppliers in the supply chain. The defects of the traditional supply chain model and the necessity of optimization are further analysed and demonstrated. Because of the traditional retail supply chain, new retail channels are introduced, and the second‐order supply chain is established. New retail channels are added to the supply chain, and the profitability before and after the addition is analysed. Stackelberg game and Shapley value method are used for modelling. Finally, Matlab is used for numerical analysis. The results show that adding new retail channels to the traditional supply chain dominated by suppliers will increase the market share of products. The market share f is positively correlated with the profits of suppliers and retailers. Under the multi‐channel retail model, product demand and supply chain profits are higher than a single channel. The Shapley value method can enable supply chain members to obtain corresponding benefits on their input, thereby achieving a win–win situation for retail supply chain members.