Alexandria Engineering Journal (Mar 2023)

Pricing and redesign decisions for global supply chain of free trade port based on the complex system

  • Shaoqing Tian,
  • Linlin Ye,
  • Fan Jiang,
  • Chongli Huang

Journal volume & issue
Vol. 66
pp. 607 – 618

Abstract

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The construction of the Hainan Free Trade Port (HFTP) is proceeding step by step. With the closing time in 2025, companies from all over the world have begun to notice the importance of the HFTP. Many companies have begun to consider rebuilding their supply chain networks with HFTP as an important node, thus forming a free trade port supply chain. As a result, HFTP has formed a complex system focused on the global supply chain. This paper constructs a dual-channel supply chain networks scenario with a single product manufacturer leading pricing based on complex system perspective. In the context of whether to choose the Free Trade Port Blockchain Platform (FTPBCP), using the traditional distribution channel as a reference, the Stackelberg game strategy is used to analyze the supply chain pricing of online direct sales and online distribution, and the SCN redesign decision. The analysis results show that the construction of the FTPBCP has a very important impact on the redesign of the GSC. Manufacturers need to consider the construction cost of the blockchain technology platform to set an appropriate price or redesign the SCN.

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