A Decision Making in Third-Party Platform Purchasing Service Considering Logistical Factors

Xue LIU

Abstract


This paper establishes a model for a two-level supply chain composed of one retailer and one third-party platform. The model describes that the platform participates in retailer procurement issues considering delivery time. The optimal decision of the third-party platform and retailer under different service decision modes is studied. The study concluded that centralized decision-making is superior to decentralized decision-making. Secondly, this paper also proves that the optimal delivery time under the two decision-making methods is consistent. The optimal delivery time is determined by the market demand structure and the cost characteristics, not affected by the form of third-party platforms and retailers.

Keywords


Third-party platform, Procurement outsourcing, Delivery time, Service pricing


DOI
10.12783/dtcse/cscbd2019/30029

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