JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2020, Vol. 55 ›› Issue (12): 103-110.doi: 10.6040/j.issn.1671-9352.0.2019.029

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Supply chain optimization considering add-on pricing under distribution contract

  

  1. Yunnan College of Economics and Management, Kunming 650300, Yunnan, China
  • Published:2020-12-01

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Abstract: Aiming at the problem of additional sales of additional products or bundled sales with core products under distribution contract, the demand function is established by using the theory of consumer utility. Using the principle of master-slave strategy, the equilibrium solutions under different situations are obtained, and the win-win conditions of supply chain members are compared and analyzed when the consumer utility maximizes. The results show that: when the acceptance degree of online products is low, but the perceived value of core products is high, the company and online platform can achieve win-win situation by adopting “additional+bundling” pricing under wholesale price contract; when the revenue sharing factor is low enough, but the perceived value of the core product is high, or the revenue sharing factor is low, the company and the online platform can achieve a win-win situation by adopting “additional+bundling” pricing under the consignment contract. Finally, when comparing contracts, we find that when the revenue sharing factor is low, the company gains more under the wholesale price contract, while the online platform gains more under the consignment contract.

Key words: supply chain management, online platform, add-on pricing, consumer heterogeneity, drop-shipping

CLC Number: 

  • F274
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