Pricing Strategy and Coordination in Three-Echelon e-Closed-Loop Supply Chain
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Kai Liu, Shengkai Wang, Siqi Zhu
In the context of “Internet +”, the impact of e-commerce platform services on product market demand should be considered, we investigate a three-echelon E-closed-loop supply chain (E-CLSC). The demand depends on the retail price of products and service level of the e-commerce platform. Base on game theory, we derive the optimal strategies for both the centralized and the decentralized channel scenarios. Subsequently, we analyze the relationship of the optimal strategies and some parameters. We find that: (1) the optimal strategies of the centralized model are better than that of the decentralized model. (2) The optimal strategies and profits of system all increase with the increase of service level's influence on market demand. We finally give a coordination contract to increase social welfare.
Closed-loop supply chain; E-commerce platform; Game theory; Coordination contract