IDEAS home Printed from https://ideas.repec.org/a/hin/jnddns/6214359.html
   My bibliography  Save this article

A Contract Coordination Model of Dual-Channel Delivery between UAVs and Couriers Considering the Uncertainty of Delivery for Last Mile

Author

Listed:
  • Ming-fei Chen
  • Yan-qiu Liu
  • Yang Song
  • Qi Sun

Abstract

For the traditional last-kilometer delivery, commodities are sent from the distribution center to the distribution transfer station, which are then delivered by the couriers from the distribution transfer station to the consumers. This single distribution channel cannot prioritize services for consumers closer to the distribution center, resulting in a waste of distribution resources. To deal with the last-kilometer delivery problem, this paper attempts to build a dual-channel distribution system consisting of UAVs and couriers. And the impact of the market allocation proportion on the expected profit of the last mile service through the two different distribution channels is discussed and analyzed. It is proved that the improved revenue sharing contract can realize the coordination of the dual-channel distribution between UAVs and the couriers. The numerical examples verify the effectiveness of the model and contract coordination. According to the research, first, with the increase in the uncertainties of the delivery quantity, the profit of the UAV channel shows a downward trend, while the profit of the courier channel remains basically the same. This is because the labor cost of the courier channel is relatively stable. Second, with the increase in the market allocation proportion of the last-kilometer delivery, the optimal delivery quantity of the UAV channel and the optimal order quantity of the courier channel are both increasing, while the overall profit of the last-kilometer is first rising and then decreasing. Third, the expected profit of the UAV channel and the courier channel can achieve Pareto improvement through the improved revenue sharing contract.

Suggested Citation

  • Ming-fei Chen & Yan-qiu Liu & Yang Song & Qi Sun, 2019. "A Contract Coordination Model of Dual-Channel Delivery between UAVs and Couriers Considering the Uncertainty of Delivery for Last Mile," Discrete Dynamics in Nature and Society, Hindawi, vol. 2019, pages 1-11, December.
    • Handle: RePEc:hin:jnddns:6214359
    DOI: 10.1155/2019/6214359
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/DDNS/2019/6214359.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/DDNS/2019/6214359.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2019/6214359?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Haughton, Michael A., 2008. "The contribution of advanced package arrival information to efficient ground deliveries by international couriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(1), pages 66-83, January.
    2. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2014. "Product variety and channel structure strategy for a retailer-Stackelberg supply chain," European Journal of Operational Research, Elsevier, vol. 233(1), pages 114-124.
    3. Weon Sang Yoo & Eunkyu Lee, 2011. "Internet Channel Entry: A Strategic Analysis of Mixed Channel Structures," Marketing Science, INFORMS, vol. 30(1), pages 29-41, 01-02.
    4. Cai, Gangshu (George), 2010. "Channel Selection and Coordination in Dual-Channel Supply Chains," Journal of Retailing, Elsevier, vol. 86(1), pages 22-36.
    5. Jason Allen & Robert Clark & Jean-François Houde, 2008. "Market Structure and the Diffusion of E-Commerce: Evidence from the Retail Banking Industry," Staff Working Papers 08-32, Bank of Canada.
    6. Shoufeng Ji & Qi Sun, 2017. "Low-Carbon Planning and Design in B&R Logistics Service: A Case Study of an E-Commerce Big Data Platform in China," Sustainability, MDPI, vol. 9(11), pages 1-27, November.
    7. Lu Hsiao & Ying-Ju Chen, 2013. "The perils of selling online: Manufacturer competition, channel conflict, and consumer preferences," Marketing Letters, Springer, vol. 24(3), pages 277-292, September.
    8. Yan, Ruiliang & Pei, Zhi, 2009. "Retail services and firm profit in a dual-channel market," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 306-314.
    9. Oliveira, Leise Kelli de & Morganti, Eleonora & Dablanc, Laetitia & Oliveira, Renata Lúcia Magalhães de, 2017. "Analysis of the potential demand of automated delivery stations for e-commerce deliveries in Belo Horizonte, Brazil," Research in Transportation Economics, Elsevier, vol. 65(C), pages 34-43.
    10. Park, Hyeongjun & Park, Dongjoo & Jeong, In-Jae, 2016. "An effects analysis of logistics collaboration in last-mile networks for CEP delivery services," Transport Policy, Elsevier, vol. 50(C), pages 115-125.
    11. Boysen, Nils & Schwerdfeger, Stefan & Weidinger, Felix, 2018. "Scheduling last-mile deliveries with truck-based autonomous robots," European Journal of Operational Research, Elsevier, vol. 271(3), pages 1085-1099.
    12. Xie, JiaPing & Liang, Ling & Liu, LuHao & Ieromonachou, Petros, 2017. "Coordination contracts of dual-channel with cooperation advertising in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 528-538.
    13. Yuen, Kum Fai & Wang, Xueqin & Ma, Fei & Wong, Yiik Diew, 2019. "The determinants of customers’ intention to use smart lockers for last-mile deliveries," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 316-326.
    14. Asoke Dey & Paul LaGuardia & Mahesh Srinivasan, 2011. "Building sustainability in logistics operations: a research agenda," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1237-1259, October.
    15. Chen, Jing & Zhang, Hui & Sun, Ying, 2012. "Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain," Omega, Elsevier, vol. 40(5), pages 571-583.
    16. Boysen, Nils & Schwerdfeger, Stefan & Weidinger, Felix, 2018. "Scheduling last-mile deliveries with truck-based autonomous robots," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126189, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Huizhen Zhang & Cesar Beltran-Royo & Bo Wang & Ziying Zhang, 2019. "Two-phase semi-Lagrangian relaxation for solving the uncapacitated distribution centers location problem for B2C E-commerce," Computational Optimization and Applications, Springer, vol. 72(3), pages 827-848, April.
    18. Matsui, Kenji, 2017. "When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?," European Journal of Operational Research, Elsevier, vol. 258(2), pages 501-511.
    19. Dumrongsiri, Aussadavut & Fan, Ming & Jain, Apurva & Moinzadeh, Kamran, 2008. "A supply chain model with direct and retail channels," European Journal of Operational Research, Elsevier, vol. 187(3), pages 691-718, June.
    20. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    21. Khouja, Moutaz & Park, Sungjune & Cai, Gangshu (George), 2010. "Channel selection and pricing in the presence of retail-captive consumers," International Journal of Production Economics, Elsevier, vol. 125(1), pages 84-95, May.
    22. Xiao Xiao & Yu Liu & Zhenji Zhang, 2012. "The Analysis of the Logistics Mode Decision to E-Commerce," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 10(4), pages 57-70, October.
    23. Bernstein, Fernando & Song, Jing-Sheng & Zheng, Xiaona, 2008. ""Bricks-and-mortar" vs. "clicks-and-mortar": An equilibrium analysis," European Journal of Operational Research, Elsevier, vol. 187(3), pages 671-690, June.
    24. Asma Troudi & Sid-Ali Addouche & Sofiene Dellagi & Abderrahman El Mhamedi, 2018. "Sizing of the Drone Delivery Fleet Considering Energy Autonomy," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yong He & Hongfu Huang & Dong Li, 2020. "Inventory and pricing decisions for a dual-channel supply chain with deteriorating products," Operational Research, Springer, vol. 20(3), pages 1461-1503, September.
    2. Matsui, Kenji, 2017. "When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?," European Journal of Operational Research, Elsevier, vol. 258(2), pages 501-511.
    3. Matsui, Kenji, 2016. "Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 646-657.
    4. Yan, Yingchen & Zhao, Ruiqing & Liu, Zhibing, 2018. "Strategic introduction of the marketplace channel under spillovers from online to offline sales," European Journal of Operational Research, Elsevier, vol. 267(1), pages 65-77.
    5. Xiao, Tiaojun & (Junmin) Shi, Jim, 2016. "Pricing and supply priority in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 254(3), pages 813-823.
    6. Tahirov, Nail & Glock, Christoph H., 2022. "Manufacturer encroachment and channel conflicts: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 302(2), pages 403-426.
    7. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.
    8. Yang, Huixiao & Luo, Jianwen & Zhang, Qinhong, 2018. "Supplier encroachment under nonlinear pricing with imperfect substitutes: Bargaining power versus revenue-sharing," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1089-1101.
    9. Yan, Wei & Xiong, Yu & Chu, Junhong & Li, Gendao & Xiong, Zhongkai, 2018. "Clicks versus Bricks: The role of durability in marketing channel strategy of durable goods manufacturers," European Journal of Operational Research, Elsevier, vol. 265(3), pages 909-918.
    10. Subrata Saha, 2016. "Channel characteristics and coordination in three-echelon dual-channel supply chain," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(3), pages 740-754, February.
    11. Chen, Jingxian & Liang, Liang & Yao, Dong-qing, 2019. "Factory encroachment and channel selection in an outsourced supply chain," International Journal of Production Economics, Elsevier, vol. 215(C), pages 73-83.
    12. Shangyu Pi & Yang Wang, 2020. "An E-Tailer’s Operational Strategy under Different Supply Chain Structures," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    13. Chen, Jing & Pun, Hubert & Li, Wei, 2018. "Using online channel to defer the launch of discount retailing store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 96-115.
    14. Fariba Soleimani & Alireza Arshadi Khamseh & Bahman Naderi, 2016. "Optimal decisions in a dual-channel supply chain under simultaneous demand and production cost disruptions," Annals of Operations Research, Springer, vol. 243(1), pages 301-321, August.
    15. Lee, Hsiao-Hui & Chang, Tingkai & Jean, Kevin & Kuo, Chia-Wei, 2022. "Channel design and OEM growth in a multi-market setup," European Journal of Operational Research, Elsevier, vol. 296(3), pages 862-872.
    16. Qiongqiong Gu & Xiaodong Yang & Bin Liu, 2020. "Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    17. Liu, Mengqi & Liang, Ke & Perera, Sandun & Huang, Rui & Ghose, Sanjoy, 2022. "Game theoretical analysis of service effort timing scheme strategies in dual-channel supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    18. Wang, Lisha & Chen, Jing & Lu, Yali, 2022. "Manufacturer's channel and logistics strategy in a supply chain," International Journal of Production Economics, Elsevier, vol. 246(C).
    19. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    20. Ciwei Dong & Liu Yang & Chi To Ng, 2020. "Quantity Leadership for a Dual-Channel Supply Chain with Retail Service," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(02), pages 1-32, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnddns:6214359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.