Decision and Strategy Selection of Fresh Food E-Commerce Supply Chain in Case of Customer Return
Managers have realized that in an O2O supply chain consisting of a fresh food e-commerce platform and a fresh produce wholesaler,the effective coordination among each entity of the chain is necessary for bring more profit to members of the chain.Considering the impact of factors such as price,delivery lead time,suggested retail price and distribution quality control on the demand for fresh agricultural products,we construct a two-agent game model with exogenous customer return rate,and explore the optimal decision-making of the supply chain under different strategy modes by using the principle of optimization.The result shows that in an immature market environment,the optimal strategy of the fresh food e-commerce platform is to not allow consumers to return the product.When the fresh food e-commerce platform adopts the strategy of allowing consumers to return unconditionally,the fresh food e-commerce platform,by virtue of its dominant position in the supply chain,would force manufacturers to adopt buyback policy,which helps to increase the profit of the fresh food e-commerce platform and the total profit of the channel.In addition,since the cost involved in the delivery lead time and the distribution quality control only account for a small proportion of the total revenue of the supply chain,the changes of the two variables are not significant for improving the profit of each member of the supply chain and the total profit of the channel.
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