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Decision Optimization and Interest Coordination of Dual-Channel Supply Chain Embedded by Two-Echelon Logistics Service Providers under the Dominance of Retailer

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  • Jianjun Zhang
  • Daning Xing

Abstract

Taking the dual-channel supply chain embedded by two-echelon logistics service providers as the research object, this paper studies the optimal decisions of each decision maker under the centralized and decentralized decision-making mode led by the retailer. Based on the decentralized decision-making mode, an improved coordination mechanism of residual profit sharing is designed to realize the interest coordination, in which the bargaining power of all participants is fully considered. The results show that, under the decentralized decision-making mode, the profit of FLSP increases first and then decreases as the sensitivity coefficient of cross-service level increases, while the profits of other decision makers and the supply chain system decrease with the increase of sensitivity coefficient of cross-service level. The relative size of the price sensitivity coefficient of online and offline channel has an inconsistent impact on the profit of FLSP, while it has a consistent impact on the profits of other decision makers. The profit of FLSP fluctuates greatly with changes in the sensitivity coefficient, and it is difficult to be guaranteed in the entire supply chain system. On this basis, an improved coordination mechanism of residual profit sharing is designed. The results show that, after the introduction of bargaining power coefficient of the Nash negotiation model, the variation coefficient of the profits of all decision makers is smaller after coordination, and the profit growth rates are more uniform.

Suggested Citation

  • Jianjun Zhang & Daning Xing, 2020. "Decision Optimization and Interest Coordination of Dual-Channel Supply Chain Embedded by Two-Echelon Logistics Service Providers under the Dominance of Retailer," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-22, November.
  • Handle: RePEc:hin:jnlmpe:3020315
    DOI: 10.1155/2020/3020315
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