Authors
Xinghong Qin, Qiang Su, Samuel H Huang, Uco Jillert Wiersma, Ming Liu
Publication date
2019/3
Journal
Operational Research
Volume
19
Issue
1
Pages
269-296
Publisher
Springer Berlin Heidelberg
Description
Service quality coordination is a critical issue of online shopping service supply chain (OSSSC) management. However, such decision-making is problematic due to the behavior of channel members with characteristics of individual rationality and concerns of fairness. The two characteristics matter much to the performance and service quality of the supply chain. Therefore, a service quality coordination contract for the OSSSC should be designed based on these two behavioral elements. This paper proposes two novel models, which take into account the two important elements mentioned above and designs coordination contracts for the OSSSC with two competing third party logistics (TPL) companies and a single online store. Equilibrium decisions in two benchmark scenarios (decentralized and centralized control) were analyzed, revealing that the use of a traditional price-only contract cannot …
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