Pricing Strategy and Coordination of Closed-Loop Supply Chain with e-Commerce Platform Sales and Services
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Kai Liu, Dongdong Li, Siqi Zhu
In the context of “Internet +”, the impact of e-commerce platform services on product market demand should be considered, we investigate a closed-loop supply chain (CLSC) with e-commerce platform sales and services. The demand depends on the 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 between the optimal strategies and elasticity coefficient of service level. We find that: the optimal strategies, market demand and system's profit all increase with the increase of elasticity coefficient of service level. In contrast to that they all decrease with the increase of elasticity coefficient service cost. We finally give a coordination contract to increase social welfare.
Closed-loop supply chain; E-commerce platform; Game theory; Coordination contract