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Supply Chain Analysis of Cross Border Importing E-Commerce Considering with Bonded Warehouse and Direct Mailing

Author

Listed:
  • Yaqing Xu

    (School of Economics and Management, Xidian University, Xi’an 710071, China)

  • Hong Gui

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Jiang Zhang

    (Robert B. Willumstad School of Business, Adelphi University, New York, NY 11530, USA)

  • Yihua Wei

    (School of Management, Shanghai University, Shanghai 200444, China)

Abstract

In this paper, we consider a cross-border supply chain system that has an import e-commerce company and an overseas supplier. We first considered a pure bonded warehouse mode in which the e-commerce company makes bulk purchase from an overseas supplier to a bonded warehouse and will deliver goods to customers from the bonded warehouse when customers order online. We constructed a Stackelberg model to obtain the equilibrium solution by using backward induction, and then properties of equilibrium strategy and equilibrium profit is discussed. We then studied the combined bonded warehouse and direct mailing mode in which the e-commerce company will purchase a single piece and mail to the customer directly if the bonded warehouse is out of stock. Analytical results demonstrate that the combined bonded warehouse and direct mailing mode may increase the profit of suppliers and decrease the profit of e-commerce companies.

Suggested Citation

  • Yaqing Xu & Hong Gui & Jiang Zhang & Yihua Wei, 2019. "Supply Chain Analysis of Cross Border Importing E-Commerce Considering with Bonded Warehouse and Direct Mailing," Sustainability, MDPI, vol. 11(7), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1909-:d:218490
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    References listed on IDEAS

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    1. Yu Wang (Avery. W) & Yi Wang & Soo Hee Lee, 2017. "The Effect of Cross-Border E-Commerce on China’s International Trade: An Empirical Study Based on Transaction Cost Analysis," Sustainability, MDPI, vol. 9(11), pages 1-13, November.
    2. Wei, Yihua & Xu, Chen & Hu, Qiying, 2013. "Transformation of optimization problems in revenue management, queueing system, and supply chain management," International Journal of Production Economics, Elsevier, vol. 146(2), pages 588-597.
    3. Serhan Ziya & Hayriye Ayhan & Robert D. Foley, 2004. "Relationships Among Three Assumptions in Revenue Management," Operations Research, INFORMS, vol. 52(5), pages 804-809, October.
    4. Deng, Ziliang & Wang, Zeyu, 2016. "Early-mover advantages at cross-border business-to-business e-commerce portals," Journal of Business Research, Elsevier, vol. 69(12), pages 6002-6011.
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