Profits Of Supply Chain Members Research Articles

Determinants of Business Model Choices for New Entrant in the Pharmaceutical E-commerce Environment

The COVID-19 pandemic has significantly impacted the pharmaceutical retail market, leading to rapid growth in the pharmaceutical e-commerce industry. Currently, the new entrant has three options for business models: offline pharmacy model, normal e-pharmacy model, and Direct-To-Patient (DTP) pharmacy model. To address this issue, this study constructs a dual-channel model that considers the enhancement coefficient of medication experience and incorporates a hospital that dominate the pharmaceutical retail market using the Hotelling model for each of the three models. The study utilizes dual-channel competition theory to compare and analyze optimal pricing and maximum profit of supply chain members under the different models, providing a decision-making mechanism for the new entrant. By comparing profits, the study finds that the DTP pharmacy model outperforms the traditional pharmacy and normal e-commerce models, providing the highest profit and the best medication experience for patients.

Power battery modular innovation investment strategies with government subsidy policies

This paper investigates the closed-loop supply chain decisions of battery manufacturers considering innovation investments and different subsidy methods provided by the government. The analysis encompasses four scenarios: whether battery manufacturers engage in innovation investments and whether the government opts for technology R&D subsidies or production subsidies. The study finds that innovation investments by battery manufacturers can enhance the modularization level of batteries. The reward or penalty measures for recycling quality imposed on automobile manufacturers elevate the quality of battery recycling, and also increase the wholesale price of batteries and the retail price of automobiles. After implementing R&D and production subsidies, both the modularization level of batteries and the profits of supply chain members exceed those without subsidies, though these subsidies do not affect the quality of battery recycling. R&D subsidies more effectively promote innovation capacity and product quality among battery manufacturers, whereas production subsidies more significantly boost the profits of both battery manufacturers and automobile manufacturers. Therefore, subsidy measures should be tailored according to different stages of the power battery industry's development. Regardless of whether battery manufacturers invest in innovation or whether the government provides subsidies, collaboration between battery manufacturers and automobile manufacturers is essential to coordinate the closed-loop supply chain. The research findings offer valuable guidance for formulating subsidy policies in the new energy vehicle industry across different periods, and also provide theoretical insights for decision-making behaviors among related enterprises.

Optimal Financing Strategy in a Dual-Channel Supply Chain with Agricultural Product

This study models a two-stage agricultural supply chain consisting of a financially constrained manufacturer of agricultural products and a financially stable retailer. We examine two supply chain structures: traditional and dual channel. Our analysis centers on the effects of consumer green preferences, consumer sensitivity to the freshness of agricultural products, and substitution rate between green and non-green agricultural products on the profitability of supply chain members. The purpose of this work is to study the optimal financing strategy for companies producing both regular and organic products simultaneously. We analyze optimal financing strategies for the manufacturer using three models: bank financing, internal debt financing, and internal equity financing. Our results indicate that in both traditional and dual-channel supply chains, increased consumer green preferences or greater sensitivity to the freshness of agricultural products improve supply chain profitability, while a higher substitution rate between green and non-green products reduces profits. Additionally, the manufacturer prefers internal debt financing when consumer environmental awareness is low. Conversely, as consumer environmental awareness increases, internal equity financing becomes more profitable. These findings offer valuable insights for agricultural product manufacturers facing financial constraints, assisting them in selecting the most appropriate financing model.

Models for dual-channel remanufacturing supply chain with reference price effect under static and dynamic games

With the diversity of shopping styles, reference prices have become a consideration in consumers’ purchasing decisions. It is critical to understand how manufacturers and retailers make optimal decisions based on consumer behavior. To this end, we develop a manufacturer-led Stackelberg (M-Stackelberg) game model to investigate the impact of consumer proportion, reference price effect (RPE), and the channel preference coefficient on the decision of the remanufacturing supply chain (RSC) in dual-channel structures. Through comparing different game scenario models, we find that when the reference price coefficient is relatively small, the optimal decisions for the manufacturer and the retailer are the same regardless of whether the RPE is considered. The manufacturer and E-tailer always benefit from RPE, while the traditional retailer (T-retailer) is uncertain. The numerical analysis revealed that the profits of supply chain members are inversely proportional to the proportion of consumers. The smaller the proportion of primary consumers, the more favorable the supply chain. In particular, the higher the channel preference coefficient, the higher the profits of the manufacturer and E-tailer, while the lower the benefit of the T-retailer. Further, in the dynamic game, the total supply chain profit is highest when the T-retailer prices earlier than the E-tailer.

Assessing the impact of carbon quota allocation in enhancing supply chain members emission reduction and advertising efforts

Carbon quota allocation, a precise implementation approach within the cap-and-trade policy, exerts an enduring impact on the production and economic activities of supply chain members. Recognizing the dynamic fluctuations in product goodwill, this study formulates differential game models involving both the manufacturer and retailer within the supply chain. Subsequently, differences in carbon emission reduction efforts, advertising expenditures, product goodwill, and profitability among supply chain members within each contractual framework are comprehensively compared and analyzed. Numerical illustrations are then utilized to validate the theoretical findings and strengthen the subsequent key insights. First, the implementation of carbon quotas allocation, especially those grounded in the benchmarking-based contract, enhances carbon reduction and advertising efforts by supply chain members. Second, both grandfathering-based and benchmarking-based regulations improve the product goodwill, with the latter yielding more substantial improvements. Third, the escalation in unit emission permit price positively impacts the dedication and profitability of supply chain members, although variations in profit enhancements between the manufacturer and retailer hinge on the specific carbon quota allocation methods employed. Lastly, the grandfathering-based total carbon quotas exclusively benefit the manufacturer's profitability, whereas the per-unit carbon quotas under benchmarking-based contract fosters enhanced individual efforts and profitability for all supply chain members.

Advance selling strategy of fresh products under two contracts

PurposeThis paper analyzes the advance selling and pricing strategies of fresh products supply chain where the e-retailer provides wholesale contract or agency contract to the fresh products supplier.Design/methodology/approachThis paper constructed a two-period sequential-move game of fresh products supply chain members.FindingsThis analysis showed that the supply chain members had different preferences for contracts under different market conditions. The advance selling of fresh products was not a decision of the seller, but also required the support of other supply chain members. And the advance selling strategy was not always beneficial to all supply chain parties. Under the two contracts, there were market conditions in which the profits of supply chain members were Pareto-improved through the implementation of advance selling.Research limitations/implicationsThe model presented in this study focuses solely on the context of monopoly, overlooking the competition from alternative suppliers or retailers. Consequently, exploring the competitive landscape within the fresh products supply chain, particularly in relation to pre-sale pricing, emerges as a crucial avenue for further investigation. By employing empirical research methods, valuable insights are gleaned, thereby significantly augmenting the existing body of relevant theories.Practical implicationsThe decision to pre-sell fresh products should be based on market conditions. Supply chain members can control production costs and fresh products circulation losses to maximize profits.Originality/valueFrom the perspective of game theory, this study analyzed the optimal advance selling and pricing strategies of fresh products supply chain members under two kinds of contracts. These results can provide practical implications for fresh products suppliers and e-retailers.

Pricing decision for recycling and remanufacturing supply chain considering consumer online consumption preferences and recycled products’ quality

With the organic integration of the Internet and remanufacturing industry, traditional manufacturers can recycle used products and sell products (including new and remanufactured products) through e-commerce retail platforms. A recycling and remanufacturing supply chain with three members (manufacturer, e-commerce retail platform, third-party recycler) is constructed in this paper. Manufacturer has remanufacturing capabilities, and the e-commerce retail platform can provide logistics service. In response to the organic integration of the Internet and remanufacturing industry, we mainly consider the pricing decisions of consumer preferences for online sales models and recycled products’ quality. Based on the impact of consumer used product recycling promotion activities on supply chain, a pricing game model was constructed for three recycling channels: manufacturer, e-commerce retail platform, and third-party recycler. Optimal pricing decision, logistics service level, used product recycling promotion intensity index, and recycling rate were obtained. Research has shown that consumer preferences can significantly improve supply chain logistics service level, pricing, market demand, and profits; Strengthening consumer awareness of remanufacturing used products and improving recycled products’ quality can not only lower consumer purchase prices and expand consumer demand, but also increase profits of supply chain members.

Research on Green Supply Chain Formation and Government Subsidy Pricing Strategy Considering an Online Trading Platform

Low-carbon production is currently the development direction of enterprises. The government provides low-carbon subsidies to low-carbon manufacturing enterprises to promote the formation of a green supply chain. To better encourage the development of the green supply chain by determining government subsidies and platform authentication fees, this paper constructs a Stackelberg game model that consists of a supplier and a manufacturer, and solves the optimal decisions of each entity using the backward induction method. This study uses the matching method to analyze the payoff matrix for supply chain members when choosing between low-carbon and traditional production. After introducing the online trading platform, the impact of the platform on the profit of supply chain members is studied, considering whether the authentication service provided by the platform is completely accurate. The results show that (1) in the green supply chain, there is a relationship between the enterprises’ profit and the level of emissions reduction, which increases first and then decreases. (2) The online trading platform is conducive to achieving green supply chain coordination. The government can pay fewer subsidies to prompt the formation of a green supply chain and the optimal emissions reduction level of the enterprise is higher. (3) When the authentication mechanism of the platform is imperfect, the authentication fee of the platform and the subsidy coefficient of the government need to be set within a reasonable range to avoid the enterprise adopting traditional production pretending to be the low-carbon type. This study contributes to research on the green supply chain and provides insights into pricing strategies for governments and platforms.

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

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.

Enhancing the Efficacy of Pharmaceutical E-Commerce Through Omni-Channel Coordination

In the current era of e-commerce, the pharmaceutical industry has not experienced the same level of growth as regular commodities due to the high costs associated with home delivery and the perceived risks associated with purchasing drugs online. This paper proposes an omni-channel strategy to address these challenges, involving an “order online, home-delivery offline” approach between e-pharmacies and drugstores, with telemedicine serving as a coordination mechanism between e-pharmacies and hospital doctors. The proposed strategy achieves a seamless patient experience during online diagnosis. To analyze its feasibility, the paper employs optimization techniques to compare the profits of supply chain members in both omni-channel and non-omni-channel scenarios. The results demonstrate that the proposed strategy is both practical and efficient, boosting patients' trust in e-commerce and improving the profitability of the pharmaceutical industry.

Optimal decisions and coordination mechanism in a green supply chain with loss‐averse consumers in environmental quality

AbstractWe consider consumers' loss aversion in environmental quality and develop a two‐period game theoretical model to investigate the optimal pricing and environmental quality decisions for a green supply chain where a manufacturer sells products to consumers through a retailer. We then introduce a two‐part tariff contract to coordinate the supply chain for both periods. We suggest that optimal decisions in the second period depend on the reference point of the first period in the decentralized supply chain. A higher reference point leads to the increased environmental quality of products, prices, and profits of supply chain members in the second period. However, when the reference point is sufficiently high, the environmental quality will be lower to avoid excessive environmental investment costs. Furthermore, consumers' loss aversion reduces the environmental quality of products when the reference point is low. As consumers' loss aversion increases, the manufacturer's profit rises, while the wholesale and retail prices and the retailer's profit show a decreasing and then increasing trend. Finally, we find that a two‐part tariff contract enables the two‐period supply chain to be coordinated and achieve Pareto improvements in profit and environmental quality. This study sheds valuable light on understanding consumer environmental preferences and irrational behavior for supply chain decision‐making and green product design.

Low-Carbon Transformation Strategy for Blockchain-Based Power Supply Chain

Carbon abatement in the power sector is essential to achieving the “double carbon” goal, and blockchain technology, one of the most promising emerging technologies, will assist the power sector in efficiently achieving this goal. In terms of the effectiveness of carbon abatement, comparative studies on coordination mechanisms are absent in the existing literature. On this basis, aiming at the cooperative abatement strategy between power generation generators and sellers under the carbon tax policy, this paper has developed four decision models: the Stackelberg game led by power generation enterprises, the simultaneous Nash bargaining decision by both parties, the vertical integration decision by supply chain enterprises, and the cooperative carbon emission reduction game by supply chain enterprises, to analyze the changes in electricity price, sustainability level, power sales, and profits of supply chain members. The results of the numerical analysis show that user preference for blockchain technology and an increase in the proportion of low-carbon electricity information uploaded to the blockchain can significantly improve the sustainability level of the electricity supply chain. The level of investment in green technologies by electricity producers under cooperative abatement decision-making increases compared to the electricity producer-dominated Stackelberg game model. The sustainability level of the electricity supply chain is higher under the Nash simultaneous decision than under the abatement cost-sharing decision, but the decision-maker’s profit is lower. The values of overall profit and sustainability level of the electricity supply chain are both highest under the vertically integrated decision.

Pricing and Coordination of the Extended Warranty Service Supply Chain that Considers Fairness Concerns

For the product dual-channel supply chain composed of one manufacturer and one retailer with fairness concerns, considering that the decision of products and extended warranty services in the supply chain is affected by the fairness concern behavior of retailers, the Stackelberg game method was used to establish the profit decision model of manufacturers and retailers, solved the product price, extended warranty service price and profit of each member of the supply chain during centralized and decentralized decision-making, and discussed the impact of retailer fairness concern on the optimal decision and profit of supply chain members. The results showed that with the increase of retailers' fairness concern coefficient, the wholesale price of products and the price of extended warranty service decrease, and the price of direct sales channel and retail channel price of products increase. Retailers' profits increase, manufacturers' profits, and the total profits of supply chain systems decrease.

Optimal strategies for a multi-channel recycling supply chain in the clothing industry: considering consumer types

PurposeThis study aims to focus on the clothing recycling supply chain and aims to provide optimal decisions and managerial insights into supply chain strategies, thereby facilitating the sustainable development of the clothing industry.Design/methodology/approachBased on previous single- and dual-channel studies, game theory was employed to analyze multiple recycling channels. Concurrently, clothing consumer types were integrated into the analytical models to observe their impact on supply chain strategies. Three market scenarios were modeled for comparative analysis, and numerical experiments were conducted.FindingsThe intervention of fashion retailers in the clothing recycling market has intensified competition across the entire market. The proportions of various consumer types, their preferences for online platforms and their preference for the retailer’s channel influence the optimal decisions and profits of supply chain members. The diversity of recycling channels may enhance the recycling volume of clothes; however, it should meet certain conditions.Originality/valueThis study extends the existing theory from a channel dimension by exploring multiple channels. Furthermore, by investigating the classifications of clothing consumers and their influence on supply chain strategies, the theory is enhanced from the consumer perspective.

Fuel consumption-reduction investment decisions and coordination contracts in fuel vehicle supply chains: A dynamic analysis

The share of carbon emissions from road transport is as high as 14% of global carbon emissions; fuel vehicles account for a significant part of these emissions. Therefore, there is a long way to reduce fuel consumption in fuel vehicles. We consider the government’s choice of two policies, Vehicle Carbon Emission Regulation (VCER) and Dual Credit Policy (DCP), to regulate the fuel vehicle supply chain and construct a Stackelberg differential game model for fuel consumption-reduction investment decision and operation coordination in a fuel vehicle supply chain consisting of one supplier and one manufacturer. Furthermore, we analyze the supply chain’s equilibrium strategies under centralized and decentralized decision scenarios. Finally, design a bilateral sharing contract to coordinate the supply chain and verify the theoretical analysis by numerical simulation. The results show that the DCP has a stronger incentive for fuel consumption reduction investment than the VCER; the supplier’s profit increases as the severity of the two policies increases, but the change in the manufacturer’s profit is not consistent under the two policies, where the increase in the penalty rate under the VCER decreases the manufacturer’s profit. However, it falls and then rises with tighter fuel consumption standards under the DCP. At the same time, the two-way cost-sharing contracts can encourage more fuel consumption reduction investments while increasing the profits of supply chain members, which is a Pareto improvement for the ecosystem and the supply chain parties.

Pricing and Carbon-Emission-Reduction Decisions under the BOPS Mode with Low-Carbon Preference from Customers

The need to mitigate the impacts of climate change has been a worldwide consensus. Cap and trade regulations have been introduced to make the world achieve carbon peaks and neutrality. There are also growing concerns regarding low carbon management. Considering both cap and trade regulations and low-carbon preferences from customers, this study focuses on reducing carbon emissions and pricing decisions in the dual-channel supply chain based on game theory. Furthermore, it analyzes the effects of low-carbon preference (LCP) on emission-reduction efforts and the profits of supply chain members. Finally, it investigates the impact of promoting low-carbon products on optimal decisions and profits. The results conclude that (1) the growth of customers’ LCP level motivates the manufacturer to have more investment in emission reduction with the BOPS unit compensation or full-sales transfer mode; (2) the increase in customers’ LCP level would benefit the supply chain members; (3) the joint emission-reduction strategy can strengthen the positive impact of LCP level on the manufacturer’s emission-reduction effort and the profits supply chain members; and (4) the joint emission-reduction strategy is preferable for the supply chain members compared to the single emission-reduction strategy. However, the joint emission strategy is not always better than the single emission strategy with respect to the selling price. Finally, it provides managerial implications for decision-makers and potential issues for future research.

Contract Design for Return Products in a Cooperative Closed-Loop Supply Chain

The importance of considering the End-of-life product (EOL) in the closed-loop supply chain network has led it to model a two-echelon closed-loop supply chain network between the retailer and the manufacturer in this article, considering the redemption guarantee. Consumer products to be paid. Therefore, the model is considered in two modes, in which initially the members of the supply chain under a Stakelberg game are competing with each other for pricing on new products, product redemption and wholesale prices. In this (decentralized) scenario, members of the supply chain (retailer and manufacturer) are a percentage increase in their profit function. In this scenario, the producer, after determining the wholesale price as the leader of the game, maximizes the profit from the sale of its products, and then the retailer, as the leader in the game, determines the price of the products and the redemption price. In another (centralized) scenario, the main goal is to increase the profitability of the entire supply chain. This article also examines a contract related to the rate of purchase of returned products and the sale of new products, which encourages supply chain members to work together to increase their profits over a decentralized scenario. The stated materials lead to the design of models in a focused and decentralized scenario. The results of implementing the model on the sample problem show the high efficiency of this type of contract in increasing the profit of supply chain members compared to the decentralized scenario.

Optimal Decision-Making of Closed-Loop Supply Chains in E-Commerce Platform Considering Sales Cooperations under Environmental Effects and WEEE Regulations.

Nowadays, to achieve carbon neutrality, e-commerce platforms participate in the sales and recycling of electrical and electronic products in consideration of waste electrical and electronic equipment (WEEE) regulations and environmental effects. This study builds a Stackelberg game model for an e-commerce closed-loop supply chain (ECLSC) under different sales cooperation modes between a manufacturer of electrical and electronic products and an e-commerce platform. Reverse induction is used to obtain the optimal decision-making and profit of the ECLSC under three sales cooperation modes, considering the influence of environmental effects on optimal decision and objective functions. The results show the following: the sales cooperation mode and environmental cost do not affect the WEEE recovery prices of manufacturers and e-commerce platforms, nor do they affect government subsidy standards for dismantling WEEEs; they are, however, positively correlated with environmental benefits. Furthermore, the wholesale and retail prices of electrical and electronic products under different sales cooperation modes are related to sales cooperation modes and environmental costs. Moreover, the processing fees imposed on the manufacturers are related to the environmental costs of the electrical and electronic products; the thresholds of environmental costs of products for government to levy processing fees are different under different sales cooperation modes. Finally, the environmental cost of products required by the government's levying of processing fees are the lowest under a hybrid model. Generally speaking, under WEEE regulations, governments should levy more processing fees for electrical and electronic products with higher environmental costs. Meanwhile, increased environmental benefits will always increase the profits of supply chain members, but increased environmental costs do not always reduce the profits of supply chain members, and multichannel product sales do not always generate profits for manufacturers.

Coordination Decision-Making for Intelligent Transformation of Logistics Services under Capital Constraint

The intelligent transformation of logistics plays a significant role in meeting the diverse needs of customers, improving operational efficiency, and reducing carbon emissions in logistics activities. Therefore, to achieve sustainable development, logistics enterprises need to face the decision-making problem of intelligent logistics transformation. In this paper, we construct a Stackelberg game model between a financially constrained logistics-service provider (LSP) and a well-funded logistics-service integrator (LSI) and discuss the impact of the wholesale price contract, the cost-sharing contract, the revenue-sharing contract, the two-part tariff contract, and the hybrid cost-sharing and revenue-sharing contract on the intelligence level of logistics services, the profits of supply-chain members, and the channel for logistics-service demand. We found that the cost-sharing contract and the revenue-sharing contract cannot achieve Pareto improvement in the profits of supply-chain members. In addition, the increase in bank-loan interest rates would seriously weaken the level of intelligence and market demand for the entire logistics service. However, when consumers do not have high requirements for the intelligence of logistics services, the two-part power–price contract can create a win–win situation for supply-chain members and increase market demand within a certain range; on the contrary, a hybrid contract of cost sharing and revenue sharing is the best choice. Moreover, in the process of contract design for the intelligent transformation of logistics services, it is necessary to pay attention to the influence of the price-sensitivity coefficient on decision-making.

Retailers' information disclosure strategies with behavior‐based pricing in competitive supply chains

AbstractIn this paper, we investigate information disclosure strategies with behavior‐based pricing (BBP) of retailers in a competitive channel with consumers' valuation uncertainty. We analyze the impacts of disclosure strategies (i.e., disclosing by an individual retailer and disclosing by both retailers) with BBP on the pricing decisions and profits of supply chain members. Then, we investigate the effects of the probability of a high valuation on supply chain members. We find that (i) the profits of manufacturers and retailers with BBP and information disclosure are always higher than those with BBP; (ii) the profits of manufacturers and retailers when both retailers implement BBP and use information disclosure are always higher than those when one retailer implements BBP and uses information disclosure; and (iii) the profits of manufacturers and retailers decrease with the probability of a high valuation first and then increase with it when both retailers implement BBP and use information disclosure.