Work

Value‐added service decision and coordination under fresh produce e‐commerce considering order cancelation

Year: 2023

Type: article

Abstract: This paper proposes an analytic model under fresh produce e‐commerce considering value‐added service and order cancelation behavior. We first examine the optimal prices, value‐added service decisions, and profits in the centralized and decentralized channels. Then, the revenue‐cost‐sharing contract is designed to eliminate the double marginal effect in the decentralized channel. The main findings are threefold. First, with the improvement of product quality, the optimal value‐added service may increase and then decrease in both centralized and decentralized channels. Second, compared with the centralized channel, the decentralized channel prefers a lower retail price only when both salvage value coefficient and product quality are high. Besides, the proposed revenue‐cost‐sharing contract performs well in improving the value‐added service and profits in the decentralized channel.

Source: Managerial and Decision Economics

DOI: 10.1002/mde.3812

Authors: Yuyang Tan, Chunxiang Guo, Dong Cai

Institution: Sichuan University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

Funders: National Natural Science Foundation of China, Sichuan University

Awards: G1241977721, 网络视角下考虑冲突环境与共情效应的群决策理论与方法研究