Coordination of Online Shop** Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs
Abstract
:1. Introduction
- What impact do different decision orders have on the benefits of stakeholders and system benefits?
- How do the different cost-bearers of agricultural product damage affect the decisions of stakeholders?
- What coordination method can be utilized to address the issue of low preservation levels in traditional models?
2. Literature Review
2.1. Research on the Supply Chain Considering Preservation Efforts
3. Description and Assumptions
4. Analysis of the Model
4.1. Centralized Model
4.2. Decentralized Model of LR
4.3. Decentralized Model of LL
4.4. Decentralized Model of RL
4.5. Decentralized Model of RR
5. Coordination Mechanism
6. Numerical Simulation
- The set parameters meet all the assumptions and conditions mentioned above.
- The parameter values set are consistent with the real-life situation of the agricultural e-commerce market.
- (1)
- The preservation effort level, the interests of both decision-making parties, and the system profit have all reached their optimal levels in the centralized model. For example, the preservation effort level and market demand in the centralized mode are the largest in the five models, at 0.840 and 40.017, respectively. At the same time, the system profit under the centralized model is also the largest, at 769.920. However, this differs from the actual situation, which also proves the necessity of a joint contract.
- (2)
- When TPL takes the lead in decision-making, it prioritizes its logistics service pricing and level of preservation efforts. In the LR and LL models, the logistics service quotation in the LL model is 30.589, while the logistics service quotation in the LR model is 29.617. The main reason for this difference is that TPL often tends to increase logistics service quotations to share costs rather than increase preservation efforts due to the need to bear damage costs. Therefore, in both the LR and LL models, the level of preservation efforts, both parties, and system profits are the same.
- (3)
- According to the simulation values, we can see that the sales price in the RR model is 40.418, slightly higher than the RL model, while the level of preservation effort is only 0.251, which is much lower than the RL model. This is because when the online store takes the lead in decision-making and bears the cost of damaged goods, they are more inclined to compensate for the loss of goods damage costs by increasing sales prices. In the RL model, TPL has to reduce the cargo damage costs by increasing the level of preservation efforts. Therefore, the level of preservation efforts and revenues of both parties in the RL model are higher than those in the RR model.
- (4)
- Under coordinated decision-making, we can also see that when the price of logistics services drops from 30 to the range of 2.5 to 5, the logistics service provider provides logistics services at a price lower than the logistics cost, but its profits actually increase. This indicates that the profit source of TPL has undergone a huge transformation from logistics service fees to profit sharing in the online store. This transformation also increases the cost of preservation, ultimately increasing the profits of both parties and achieving Pareto optimality.
6.1. Sensitivity Analysis
6.2. Discussion on the Results
7. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
Appendix I
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Symbol | Definitions |
---|---|
The abbreviation for fresh product online store | |
The abbreviation for TPL service provider | |
Unit sales price of fresh products | |
Unit logistics service quotation | |
Unit logistics service cost | |
The initial level of preservation efforts for fresh products | |
Effort level of fresh product preservation | |
Capacity coefficient of preservation cost for TPL | |
The damage rate of fresh food | |
The initial damage rate of fresh products | |
Preservation control effect | |
Sensitivity coefficient of fresh product sales prices | |
Unit loss cost of fresh products | |
Potential market demand for fresh products | |
Sensitivity coefficient of preservation effort level | |
Market requirement for fresh products | |
The proportion of shared profits in online stores | |
The proportion of online stores bearing the cost of preservation | |
Profit of online stores for fresh agricultural products | |
Profit of TPL service providers | |
Gross profit of the online shop** SC |
TPL-First Decision (TPL-Led) | Online Store-First Decision (Online Store-Led) | |
---|---|---|
The online store bears the cost of cargo damage | LR model | RR model |
The TPL bears the cost of cargo damage | LL model | RL model |
Decision Types | |||||||
---|---|---|---|---|---|---|---|
Model of LR | 40.397 | 29.617 | 19.617 | 0.514 | 192.406 | 377.424 | 569.830 |
Model of LL | 40.397 | 30.589 | 19.617 | 0.514 | 192.406 | 377.424 | 569.830 |
Model of RL | 40.203 | 20.964 | 20.008 | 0.521 | 384.960 | 192.480 | 577.440 |
Model of RR | 40.418 | 19.682 | 19.364 | 0.251 | 372.562 | 187.280 | 559.843 |
Centralized model | 30.328 | — | 40.017 | 0.840 | — | — | 769.920 |
Coordinated decision-making | 30.328 | 2.5 | 40.017 | 0.840 | 192.725 | 577.195 | 769.920 |
30.328 | 3 | 40.017 | 0.840 | 231.268 | 538.653 | 769.920 | |
30.328 | 3.5 | 40.017 | 0.840 | 269.810 | 500.110 | 769.920 | |
30.328 | 4 | 40.017 | 0.840 | 308.352 | 461.568 | 769.920 | |
30.328 | 4.5 | 40.017 | 0.840 | 346.895 | 423.025 | 769.920 | |
30.328 | 5 | 40.017 | 0.840 | 385.438 | 384.482 | 769.920 |
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Ren, H.; Hu, Y. Coordination of Online Shop** Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs. J. Theor. Appl. Electron. Commer. Res. 2024, 19, 1337-1357. https://doi.org/10.3390/jtaer19020068
Ren H, Hu Y. Coordination of Online Shop** Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs. Journal of Theoretical and Applied Electronic Commerce Research. 2024; 19(2):1337-1357. https://doi.org/10.3390/jtaer19020068
Chicago/Turabian StyleRen, Hai**, and Yingxin Hu. 2024. "Coordination of Online Shop** Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs" Journal of Theoretical and Applied Electronic Commerce Research 19, no. 2: 1337-1357. https://doi.org/10.3390/jtaer19020068