Coordination Research On CRH Express Supply Chain With Direct Selling And Retail Market Demands

As one of the seven major business of Chinese railway freight,China Railway High-Speed Express(hereafter referred to as CRH Express)has been rapidly development,after a test run between Beijing and Shanghai high railway.However,it should be noted that China Railways Corporation(hereafter referred to as CRC)was far from making full use of CRH spare transport capacity,because of its shortage of CRH Express business capabilities;moreover,as a special new type of transit style,CRH has huge market potential in express transportation market,since the structure of transport capability was irrational in Chinese traditional express companies(express enterprises like STO Express,ZTO Express,S.F.Express and so on).Therefore,the cooperation between Chinese traditional express companies and CRC is not only good for both sides own development,but also for the sustainable development of Chinese express industry.Under the set of the cooperation,the providers of CRH express service come from two different channels,which are CRC and traditional express companies.So it is essential to resolve the conflicts between two channels.In order to meet that goal,a model of CHR express supply chain with direct selling and retail market demands is built,meanwhile relevant symbols are given.Next,the equilibrium pricing strategies of decentralized decision and centralized decision are obtained respectively.Through comparison of the two situations,it is concluded that the whole profit of the supply chain is higher in the centralized decision.Therefore,the price discount mechanism and compensation strategy mechanism are designed to achieve the perfect coordination of the combination of dual-channel CHR express supply chain.Further numerical examples are used to verify the validity of coordination.The mainly conclusions of this paper are as shown below:When CRC sets the price of the discount rate equals the cross elasticity coefficient of the two channels,CRH express duel-channel supply chain goes to concerted;if the transfer payment,which is equal to part of the express company profits,can be confined to a certain range,the price discount contract can be made CRH duel-channel supply to achieve perfect coordination.Only when the CRC pays part of its orders from direct channel to traditional express company,meanwhile express enterprises needs to pay the "franchise fee" to the CRC,the compensation strategy can be made CRH express duel-channel supply to achieve perfect coordination.After the execution of the compensation strategy,to gain the initiative of negotiation,CRC express company shall be provide the traditional express company with a higher rate of its orders from direct channel,in order to get the relatively better "franchise fees" from express company,to create more benefits.