Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs

Abstract

To reduce the losses caused by insufficient preservation efforts during transportation, the preservation effort level has been the focus of research. In the fierce competition of online sales, it is particularly important to reduce the cost of damaged goods by improving the level of preservation efforts. Therefore, according to Stackelberg game theory, this article establishes five decision-making models and incorporates the damage rate and preservation effort level into the research. Finally, this article coordinates the online shipping supply chain (SC) through a joint contract. After comparing and analyzing the model results, research has found that: (1) in centralized model, the level of preservation effort reaches its optimal level and the system benefit is maximized; (2) under third-party logistics (TPL) leading decision-making, the different bearers of cargo damage costs will not affect the profits of both parties and the system; (3) among the four decentralized models, the level of preservation efforts and system profit are highest when the decision is led by online store and TPL bears the cost of damaged goods; and (4) under a given sharing ratio, when the logistics service quotation satisfies a certain range of condition, the online shopping SC can achieve Pareto improvement. This paper studies the differences and reasons for decision models in the supply and demand relationship between online stores and TPL, which provides fresh product e-commerce decision-makers with a theoretical basis.

Keywords

• level of preservation efforts
• joint contract coordination
• online stores
• third-party logistics