Unlike the traditional decentralized channel,the drop-shipping channel entails a retailer relaying consumers’orders to the manufacturer,which proceeds to stock the orders and directly ship them to the consumers.This ...Unlike the traditional decentralized channel,the drop-shipping channel entails a retailer relaying consumers’orders to the manufacturer,which proceeds to stock the orders and directly ship them to the consumers.This study explores supply chain coordination and product quality in drop-shipping and traditional channels.Specifically,we analyze the performance of both channels under wholesale price and revenue-sharing contracts.Our study yields several key findings.First,the revenue-sharing contract can coordinate both traditional and drop-shipping channels,effectively increasing supply chain performance.Second,given the channel structure,the retailer prefers the wholesale price contract,whereas the manufacturer prefers the revenue-sharing contract.Third,product quality is higher in the drop-shipping channel when demand uncertainty is high.Finally,the implementation of the revenue-sharing contract increases product quality in the traditional channel,whereas it keeps product quality unchanged in the drop-shipping channel.展开更多
基金supported by the Key Fund Project for Youth Innovation of USTC(WK2040000042).
文摘Unlike the traditional decentralized channel,the drop-shipping channel entails a retailer relaying consumers’orders to the manufacturer,which proceeds to stock the orders and directly ship them to the consumers.This study explores supply chain coordination and product quality in drop-shipping and traditional channels.Specifically,we analyze the performance of both channels under wholesale price and revenue-sharing contracts.Our study yields several key findings.First,the revenue-sharing contract can coordinate both traditional and drop-shipping channels,effectively increasing supply chain performance.Second,given the channel structure,the retailer prefers the wholesale price contract,whereas the manufacturer prefers the revenue-sharing contract.Third,product quality is higher in the drop-shipping channel when demand uncertainty is high.Finally,the implementation of the revenue-sharing contract increases product quality in the traditional channel,whereas it keeps product quality unchanged in the drop-shipping channel.
