In the Business to Consumer (B2C) environment, it is important to alleviate the mismatch between delivery capacity and demand in the express delivery supply chain. To do this, we propose three contracts to improve supply chain performance: the advanced payment contract, penalty contract, and time insurance contract. To assess these contracts, we considered the supply chain of one e-retailer and one express delivery provider. We discussed which contract is better for the supply chain partners when the three contracts can coordinate the supply chain. We found that when its unit cost of delayed orders is lower, the e-retailer will choose the advance payment contract among three contracts. When its unit cost of delayed orders is medium, the e-retailer will opt for the time insurance contract. When its unit cost of delayed orders is high, the e-retailer will not choose the advanced payment contract. In this case, whether the e-retailer chooses the time insurance contract and penalty contract depends on the value of wholesale price.
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DOI : 10.1051/ro/2021007
Keywords: Capacity strategy, express delivery supply chain, advanced payment contract, penalty contract, time insurance contract
@article{RO_2021__55_2_689_0,
author = {Wang, Kun and Qin, Juanjuan and Xia, Liangjie},
title = {Price and capacity strategies in the express delivery supply chain: advanced payment, penalty or time insurance contracts},
journal = {RAIRO. Operations Research},
pages = {689--717},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
number = {2},
doi = {10.1051/ro/2021007},
mrnumber = {4241820},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021007/}
}
TY - JOUR AU - Wang, Kun AU - Qin, Juanjuan AU - Xia, Liangjie TI - Price and capacity strategies in the express delivery supply chain: advanced payment, penalty or time insurance contracts JO - RAIRO. Operations Research PY - 2021 SP - 689 EP - 717 VL - 55 IS - 2 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021007/ DO - 10.1051/ro/2021007 LA - en ID - RO_2021__55_2_689_0 ER -
%0 Journal Article %A Wang, Kun %A Qin, Juanjuan %A Xia, Liangjie %T Price and capacity strategies in the express delivery supply chain: advanced payment, penalty or time insurance contracts %J RAIRO. Operations Research %D 2021 %P 689-717 %V 55 %N 2 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021007/ %R 10.1051/ro/2021007 %G en %F RO_2021__55_2_689_0
Wang, Kun; Qin, Juanjuan; Xia, Liangjie. Price and capacity strategies in the express delivery supply chain: advanced payment, penalty or time insurance contracts. RAIRO. Operations Research, Tome 55 (2021) no. 2, pp. 689-717. doi: 10.1051/ro/2021007
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