IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v309y2023i1p170-187.html
   My bibliography  Save this article

Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology

Author

Listed:
  • Xu, Xiaoping
  • He, Ping
  • Zhou, Li
  • Cheng, T.C.E.

Abstract

We consider a supply chain consisting of a manufacturer and an online platform. The manufacturer produces products under the carbon cap-and-trade policy, and sells them through its own offline channel and the platform, which operates in either the marketplace or reselling mode. While enlarging the potential retail market size through the “platform power”, the platform provides logistics service for the online sales. We also consider the cross-channel effect concerning the impact of online sales on offline demand. The manufacturer can adopt blockchain technology to improve demand forecasting. We study the optimal production, pricing, delivery time decisions, and the coordination problem of the two firms under various scenarios. We compare the optimal decisions of the two firms and the manufacturer's profits with and without blockchain in each operation mode of the platform. We find that the cross-channel effect and blockchain have significant impacts on the optimal decisions and coordination results. In the marketplace mode, the optimal production quantity increases (decreases) with the commission rate if the cross-channel effect is high (low). The optimal delivery time increases (decreases) with the cross-channel effect and the cap in the marketplace (reselling) mode. The reselling mode can coordinate the manufacturer and platform regardless of whether delivery time or strategic inventory is considered, while the marketplace mode can coordinate the two firms only when delivery time is considered. If the cross-channel effect is low (high) and the platform power is high (low), adopting blockchain can generate more profit for the manufacturer. Furthermore, adopting blockchain promotes the coordination of the manufacturer and the platform.

Suggested Citation

  • Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    • Handle: RePEc:eee:ejores:v:309:y:2023:i:1:p:170-187
    DOI: 10.1016/j.ejor.2023.01.057
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221723000929
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2023.01.057?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Austan Goolsbee, 2001. "Competition in the Computer Industry: Online Versus Retail," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 487-499, December.
    2. Niu, Baozhuang & Mu, Zihao & Cao, Bin & Gao, Jie, 2021. "Should multinational firms implement blockchain to provide quality verification?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    3. Yuelin Shen & Sean P. Willems & Yue Dai, 2019. "Channel Selection and Contracting in the Presence of a Retail Platform," Production and Operations Management, Production and Operations Management Society, vol. 28(5), pages 1173-1185, May.
    4. Hua, Guowei & Cheng, T.C.E. & Wang, Shouyang, 2011. "Managing carbon footprints in inventory management," International Journal of Production Economics, Elsevier, vol. 132(2), pages 178-185, August.
    5. Wang, Junjin & Liu, Jiaguo & Wang, Fan & Yue, Xiaohang, 2021. "Blockchain technology for port logistics capability: Exclusive or sharing," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 347-392.
    6. Xiting Gong & Sean X. Zhou, 2013. "Optimal Production Planning with Emissions Trading," Operations Research, INFORMS, vol. 61(4), pages 908-924, August.
    7. Lin Tian & Asoo J. Vakharia & Yinliang (Ricky) Tan & Yifan Xu, 2018. "Marketplace, Reseller, or Hybrid: Strategic Analysis of an Emerging E‐Commerce Model," Production and Operations Management, Production and Operations Management Society, vol. 27(8), pages 1595-1610, August.
    8. Jiho Yoon & Srinivas Talluri & Hakan Yildiz & Chwen Sheu, 2020. "The value of Blockchain technology implementation in international trades under demand volatility risk," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2163-2183, April.
    9. Moon, Ilkyeong & Dey, Kartick & Saha, Subrata, 2018. "Strategic inventory: Manufacturer vs. retailer investment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 63-82.
    10. 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.
    11. Choi, Tsan-Ming & Feng, Lipan & Li, Rong, 2020. "Information disclosure structure in supply chains with rental service platforms in the blockchain technology era," International Journal of Production Economics, Elsevier, vol. 221(C).
    12. Erik Brynjolfsson & Yu (Jeffrey) Hu & Mohammad S. Rahman, 2009. "Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition," Management Science, INFORMS, vol. 55(11), pages 1755-1765, November.
    13. Modak, Nikunja Mohan & Kelle, Peter, 2019. "Managing a dual-channel supply chain under price and delivery-time dependent stochastic demand," European Journal of Operational Research, Elsevier, vol. 272(1), pages 147-161.
    14. Austan Goolsbee, 2001. "Competition in the Computer Industry: Online Versus Retail," NBER Chapters, in: E-commerce, pages 487-499, National Bureau of Economic Research, Inc.
    15. Yan, Yingchen & Zhao, Ruiqing & Xing, Tiantian, 2019. "Strategic introduction of the marketplace channel under dual upstream disadvantages in sales efficiency and demand information," European Journal of Operational Research, Elsevier, vol. 273(3), pages 968-982.
    16. Tinglong Dai & Soo-Haeng Cho & Fuqiang Zhang, 2016. "Contracting for On-Time Delivery in the U.S. Influenza Vaccine Supply Chain," Manufacturing & Service Operations Management, INFORMS, vol. 18(3), pages 332-346, July.
    17. Mortimer, Julie Holland & Nosko, Chris & Sorensen, Alan, 2012. "Supply responses to digital distribution: Recorded music and live performances," Information Economics and Policy, Elsevier, vol. 24(1), pages 3-14.
    18. Vibhanshu Abhishek & Kinshuk Jerath & Z. John Zhang, 2016. "Agency Selling or Reselling? Channel Structures in Electronic Retailing," Management Science, INFORMS, vol. 62(8), pages 2259-2280, August.
    19. Volodymyr Babich & Gilles Hilary, 2020. "OM Forum—Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 223-245, March.
    20. Pilkington Marc, 2016. "Blockchain Technology: Principles and Applications," Post-Print halshs-01231205, HAL.
    21. Ma, Peng & Gong, Yeming & Jin, Mingzhou, 2019. "Quality efforts in medical supply chains considering patient benefits," European Journal of Operational Research, Elsevier, vol. 279(3), pages 795-807.
    22. Yu, Yugang & Luo, Yifei & Shi, Ye, 2022. "Adoption of blockchain technology in a two-stage supply chain: Spillover effect on workforce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    23. Robin Hartwig & Karl Inderfurth & Abdolkarim Sadrieh & Guido Voigt, 2015. "Strategic Inventory and Supply Chain Behavior," Production and Operations Management, Production and Operations Management Society, vol. 24(8), pages 1329-1345, August.
    24. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2020. "The strategic analysis of logistics service sharing in an e-commerce platform," Omega, Elsevier, vol. 92(C).
    25. Ji, Jingna & Zhang, Zhiyong & Yang, Lei, 2017. "Comparisons of initial carbon allowance allocation rules in an O2O retail supply chain with the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 187(C), pages 68-84.
    26. Yu, Yugang & Zhou, Sijie & Shi, Ye, 2020. "Information sharing or not across the supply chain: The role of carbon emission reduction," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    27. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas & Henry Aspegren & Mark Weber, 2020. "On the Financing Benefits of Supply Chain Transparency and Blockchain Adoption," Management Science, INFORMS, vol. 66(10), pages 4378-4396, October.
    28. Alawneh, Fawzat & Zhang, Guoqing, 2018. "Dual-channel warehouse and inventory management with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 112(C), pages 84-106.
    29. Karray, Salma, 2013. "Periodicity of pricing and marketing efforts in a distribution channel," European Journal of Operational Research, Elsevier, vol. 228(3), pages 635-647.
    30. Hua, Guowei & Wang, Shouyang & Cheng, T.C.E., 2010. "Price and lead time decisions in dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 205(1), pages 113-126, August.
    31. 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).
    32. Smith, Michael D. & Telang, Rahul, 2010. "Piracy or promotion? The impact of broadband Internet penetration on DVD sales," Information Economics and Policy, Elsevier, vol. 22(4), pages 289-298, December.
    33. De Giovanni, Pietro, 2020. "Blockchain and smart contracts in supply chain management: A game theoretic model," International Journal of Production Economics, Elsevier, vol. 228(C).
    34. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    35. Xu, Xiaoping & Zhang, Wei & He, Ping & Xu, Xiaoyan, 2017. "Production and pricing problems in make-to-order supply chain with cap-and-trade regulation," Omega, Elsevier, vol. 66(PB), pages 248-257.
    36. Nie, Jiajia & Zhong, Ling & Yan, Hong & Yang, Wenjuan, 2019. "Retailers' distribution channel strategies with cross-channel effect in a competitive market," International Journal of Production Economics, Elsevier, vol. 213(C), pages 32-45.
    37. Ciwei Dong & Bin Shen & Pui-Sze Chow & Liu Yang & Chi To Ng, 2016. "Sustainability investment under cap-and-trade regulation," Annals of Operations Research, Springer, vol. 240(2), pages 509-531, May.
    38. Min Wang & Lindu Zhao & Michael Herty, 2018. "Modelling carbon trading and refrigerated logistics services within a fresh food supply chain under carbon cap-and-trade regulation," International Journal of Production Research, Taylor & Francis Journals, vol. 56(12), pages 4207-4225, June.
    39. He, Ping & Wang, Zheng & Shi, Victor & Liao, Yi, 2021. "The direct and cross effects in a supply chain with consumers sensitive to both carbon emissions and delivery time," European Journal of Operational Research, Elsevier, vol. 292(1), pages 172-183.
    40. Ting Ji & Xiaoping Xu & Xiaoming Yan & Yugang Yu, 2020. "The production decisions and cap setting with wholesale price and revenue sharing contracts under cap-and-trade regulation," International Journal of Production Research, Taylor & Francis Journals, vol. 58(1), pages 128-147, January.
    41. Xu, Xiaoping & Zhang, Mian & He, Ping, 2020. "Coordination of a supply chain with online platform considering delivery time decision," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    42. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    43. Xu, Xiaoping & He, Ping & Xu, Hao & Zhang, Quanpeng, 2017. "Supply chain coordination with green technology under cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 433-442.
    44. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    45. Hubert Pun & Jayashankar M. Swaminathan & Pengwen Hou, 2021. "Blockchain Adoption for Combating Deceptive Counterfeits," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 864-882, April.
    46. Peng Ma & Yeming Gong & Mingzhou Jin, 2019. "Quality efforts in medical supply chains considering patient benefits," Post-Print hal-02312386, HAL.
    47. Choi, Tsan-Ming & Wen, Xin & Sun, Xuting & Chung, Sai-Ho, 2019. "The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 178-191.
    48. Jakšič, M. & Fransoo, J.C., 2018. "Dual sourcing in the age of near-shoring: Trading off stochastic capacity limitations and long lead times," European Journal of Operational Research, Elsevier, vol. 267(1), pages 150-161.
    49. Albert Y. Ha & Quan Tian & Shilu Tong, 2017. "Information Sharing in Competing Supply Chains with Production Cost Reduction," Manufacturing & Service Operations Management, INFORMS, vol. 19(2), pages 246-262, May.
    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. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).

    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. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    2. Yugang Yu & Xue Li & Xiaoping Xu, 2022. "Reselling or marketplace mode for an online platform: the choice between cap-and-trade and carbon tax regulation," Annals of Operations Research, Springer, vol. 310(1), pages 293-329, March.
    3. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    4. Xu, Xiaoping & Zhang, Mengying & Chen, Lai & Yu, Yugang, 2022. "The region-cap allocation and delivery time decision in the marketplace mode under the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 247(C).
    5. Xu, Xiaoping & Zhang, Mian & He, Ping, 2020. "Coordination of a supply chain with online platform considering delivery time decision," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    6. Xu, Xiaoping & Yang, Yuanyuan & Zhang, Juzhi & Cheng, T.C.E., 2023. "Live streaming platform operations and coordination under the cap-and-trade regulation: Platform-enabled mode versus platform-agency mode," International Journal of Production Economics, Elsevier, vol. 260(C).
    7. Xu, Xiaoping & He, Ping & Zhang, Shanshan, 2021. "Channel addition from marketplace or reselling under regional carbon cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 236(C).
    8. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    9. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    10. Tiwari, Sunil & Sharma, Pankaj & Choi, Tsan-Ming & Lim, Andrew, 2023. "Blockchain and third-party logistics for global supply chain operations: Stakeholders’ perspectives and decision roadmap," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    11. Zhou, Yu & Gao, Xiang & Luo, Suyuan & Xiong, Yu & Ye, Niangyue, 2022. "Anti-Counterfeiting in a retail Platform: A Game-Theoretic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    12. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    13. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    14. Zhen, Xueping & Xu, Shuangshuang & Li, Yongjian & Shi, Dan, 2022. "When and how should a retailer use third-party platform channels? The Impact of spillover effects," European Journal of Operational Research, Elsevier, vol. 301(2), pages 624-637.
    15. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    16. Dong, Shuang & Qin, Zhongfeng & Yan, Yingchen, 2022. "Effects of online-to-offline spillovers on pricing and quality strategies of competing firms," International Journal of Production Economics, Elsevier, vol. 244(C).
    17. 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.
    18. Suyuan Luo & Tsan‐Ming Choi, 2022. "E‐commerce supply chains with considerations of cyber‐security: Should governments play a role?," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2107-2126, May.
    19. 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.
    20. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).

    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:eee:ejores:v:309:y:2023:i:1:p:170-187. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    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.