Selection of transaction model for supply chain based on transaction cost

Abstract

The extent of the transaction cost is an important factor to determine the supply chain trading patterns. Using the Buyer-Seller Model, the dimensions of supply chain transaction cost have been analyzed, and the supply chain trading patterns have been determined through setting variables. A conclusion has been arrived that the co-governance model is superior to the integration mode and the complete logistics outsourcing transaction mode under the condition of the demand-side and supply-side real investment independence.