Retailer’s Ordering Quantity and System Coordination Considering the Consignment Platform’s Information Service
LI Jianhong,DING Xiuhao,GUAN Mengcheng,TAO Zhiying
1. Wuhan Institute of Technology, Wuhan, China;2. Huazhong University of Science and Technology, Wuhan, China;3. Wuhan Textile University, Wuhan, China
Abstract In the consignment system with uncertain demand, this study explores the impact of data empowerment based on different revenue-sharing mechanisms on the retailer’s optimal order quantity decision and expected profit. Based on the newsboy model constructed on the consignment platform and numerical analysis, the study finds that the data empowerment of the consignment platform significantly affects the retailer’s decision and expected profit. When the product cost yield rate is large, the retailer’s optimal order quantity raises with the increase of the data empowerment level; while when the cost yield rate is small, the order quantity decreases with the increase of the data empowerment level, thereby affecting the profit. In addition, if the data empowerment price is low, the retailer’s expected profit is directly proportional to the data service level. Compared with other revenue-sharing mechanisms, data empowerment under the multilateral revenue-sharing contract can enable retailers to obtain the maximum expected profit.
LI Jianhong,DING Xiuhao,GUAN Mengcheng等. Retailer’s Ordering Quantity and System Coordination Considering the Consignment Platform’s Information Service[J]. Chinese Journal of Management, 2025, 22(6): 1152-.