Multichannel supply chain decisions considering service efforts under retailer overconfidence
With the overconfidence behaviors,retailers aim to better meet consumer demands by strengthening their services,leading to the overestimation of market demands when making multi-channel supply chain decisions and causing the imbalance between the actual profits and the expected profits.With the consideration of the service effort behavior of retailers under complete rationality and overconfidence,this paper builds the market demand and profit function models under the distribution consignment model and employs the Stackelberg game method to solve the model.The influence of the overconfidence coefficient of multi-channel supply chain,consumer service preference,the proportion of market demand structure,the proportion of agency fee of third-party e-commerce platform on decision-making,and the comparison of expected and actual profits under the expectation and overconfidence of retailers under different sales models are studied.The correctness of the theoretical derivation is further verified by numerical simulation.Our results show when the cross-price elasticity coefficient and the cost coefficient of service effort meet certain conditions,the expected profit under retailers' overconfidence is greater than that under completely rational profit and the actual profit under overconfidence.When the proportion of platform agency fees is lower than a certain node,retailers will choose to sell on behalf of the retailer.When it exceeds this node,it will be biased towards distribution.The proportion of market demand structure of self-operated channels and the cost coefficient of service have a significant synergistic effect on the reduction of the selling price of third-party e-commerce platforms.Under the consignment model,the optimal selling price and service level of each channel decrease first and then increase with the rise of the proportion of agency fees.
overconfidenceservice effortsupply chain decision makingStackelberg game