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| Research on Operation Mode Choice of Online Retailer Considering Logistics Service |
| SHI Guoqiang,WANG Yong,XIA Dejian,ZHAO Yanfei |
| Chongqing University, Chongqing, China |
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Abstract This paper considers a supply chain consisting of a manufacturer and an online retailer, and studies the decision-making of the logistics service provider and its effect on the online retailer’s operation mode choice via game theory. The results show that under the wholesale mode, both the manufacturer and online retailer prefer the logistics service to be undertaken by the online retailer, while under the agency mode, both prefer it to be undertaken by the manufacturer. The findings also demonstrate that when the service efficiency is high, the online retailer will always choose the wholesale mode regardless of the revenue distribution coefficient. We find that there are two Pareto improvement regions (win-win situations), i.e., one region where both parties prefer the wholesale mode and the other region where both parties prefer the agency mode. In addition, it is found that an increase in the revenue distribution coefficient does not always result in an increase in profits for the online retailer.
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Received: 02 May 2020
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