Study on E-Commerce Service Supply Chain Coordination Based on Contract Theory

Abstract

In order to solve e-tailing service integrator's goods and logistics service coordination problem, this paper designs a supply chain model which consists of a product supplier, an e-retailer and a logistics service provider. The purpose of this model is to analyze the effectiveness of three types of supply chain contracts within the e-commerce logistics service supply chain. This article will analyze wholesale price contracts, revenue sharing contracts and quantity flexibility contracts. The models under three types of contracts are constructed to analyze the optimal decisions. In addition, the article will explain why managers in the e-commerce industry should adopt these supply chain contract approaches to increase revenues. The models described in the study could be seamlessly utilized by e-retailers and logistics service providers to maximize their revenues and profits. The results show that this model can coordinate the e-commerce logistics service supply chain by adjusting contract parameters and improve the profits of the members.