Supply chain coordination with financial constraints considering delivery time and cross-channel spillover effect

Xiaoping Xu, Yuanyuan Yang, Fang Chen, T. C.Edwin Cheng, Hao Qin

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

A manufacturer selling its products via an offline channel and a capital-constrained platform is considered in our work. The agency or reseller mode is operated by the platform. Affected by the delivery time, the offline demand is affected by the online channel, which is called the cross-channel spillover effect (CCSE). Building game models for analysis, we derive the following major results: First, how the commission rate affects the optimal production quantity depends on CCSE. CCSE has no impact on (decreases) the platform's optimal delivery time in the agency (reseller) mode. Besides, the platform's optimal profit decreases with a positive CCSE but increases with a negative CCSE in the agency mode. But in the reseller mode, it always increases with CCSE. Second, the financial constraint decreases the optimal production quantity and extends the optimal delivery time. Third, the agency mode always leads to a larger market share and longer delivery time than the reseller mode. The manufacturer should choose the reseller mode (agency mode) under a high (low) slotting fee. Last, the manufacturer and platform cannot realize coordination by using only the agency or reseller mode. However, considering the manufacturer-led Stackelberg game, the reseller mode can do so, while the agency mode cannot. Further, considering a retailer and a third party under the omnichannel strategy, the reseller mode can always coordinate them, and the agency mode can only do so at a low interest rate of the loan.

Original languageEnglish
Pages (from-to)1021-1060
Number of pages40
JournalInternational Transactions in Operational Research
Volume31
Issue number2
DOIs
Publication statusPublished - Mar 2024

Keywords

  • coordination
  • cross-channel spillover effect
  • delivery time
  • financial constraint

ASJC Scopus subject areas

  • Business and International Management
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

Fingerprint

Dive into the research topics of 'Supply chain coordination with financial constraints considering delivery time and cross-channel spillover effect'. Together they form a unique fingerprint.

Cite this