Research On Operational And Financial Decisions Of E-commerce Supply Chain Under Different Sales Modes

With competition in online retail becoming more intense and consumers seeking better quality products and services,e-commerce supply chains are focusing on providing high-quality experiences to meet consumer demands.However,this has put significant financial pressure on enterprises within the supply chain.Small and medium-sized manufacturers often face a shortage of capital,which can hinder their ability to make optimal operational decisions.To overcome these financial constraints,financing is often necessary.While traditional bank financing remains an option,the development of information technology has also led to the emergence of direct financing solutions offered by retail platforms.However,for manufacturers with limited funds,deciding which financing method to choose can be challenging.Currently,resale and consignment sales are the two primary sales models in the e-commerce supply chain.The decision variables for manufacturers and retail platforms differ between these models and can have a significant impact on operational decisions.As a result,careful consideration of these factors is essential when making decisions within the supply chain.Given the operational and financial limitations of the e-commerce supply chain,this paper employs game theory as a research method to investigate the operation and financing strategies of the supply chain under various sales modes,with particular attention to manufacturers’ capital constraints.The primary areas of research are as follows:The study focuses on exploring the operation and financing decisions of the ecommerce supply chain under the resale model.Firstly,optimal operational decisions were identified in the absence of capital constraints,after which the influence of bank financing and retail platform direct financing on operational decisions was examined.Results showed that as financing costs increase,product quality and service level decrease.Regardless of whether it is bank financing or retail platform direct financing,product quality is consistently lower under financial constraints.However,retail platforms provide higher service levels when direct financing is available,thanks to the financing benefits.For manufacturers with limited funds,the choice between bank financing and retail platform direct financing depends on several factors,including the unit production cost and price elasticity coefficient of the product.When production costs are low,manufacturers tend to prefer direct financing.However,when production costs are high,manufacturers are more likely to choose bank financing.We also investigated the operational and financing decisions of the e-commerce supply chain under the consignment model.In this model,retail platforms act as service providers to offer manufacturers online sales services.Like the resale model,both product quality and service level decrease with an increase in financing interest rates.However,the impact of revenue sharing ratios on product quality and service level depends on the cost coefficient of service level and the elasticity coefficient of demand.If retail platforms lack the incentive to improve service levels,increasing investment in product quality is unlikely to be beneficial for manufacturers.Unlike the resale model,the choice of financing model under the consignment model depends on the revenue sharing ratio when unit production cost is moderate.If the revenue sharing ratio is too high and the retail platform is encroaching on the manufacturer’s revenue excessively,the manufacturer is likely to prefer bank financing.Otherwise,if the revenue sharing ratio is reasonable,the manufacturer may choose retail platform direct financing.Lastly,this study compares product quality and service levels under resale and consignment models and explores the financing equilibrium of manufacturers under the two sales models.Furthermore,an extended analysis is conducted on the sales model choices of manufacturers under varying financial conditions.The findings indicate that,when funds are not constrained,the service level under the consignment mode consistently exceeds that under the resale mode.The impact of direct financing on product quality and service level depends on the sales model employed.Specifically,the resale model proves advantageous for improving product quality,while the consignment model facilitates enhancement of service levels.Within a specific range,financing decisions of manufacturers are independent of their sales models.For instance,when unit production cost is low or high revenue sharing ratios are prevalent,manufacturers will typically opt for bank financing.However,when unit cost falls within the middle range,manufacturers tend to choose retail platforms for direct financing.Ultimately,when the manufacturer has the right to choose a sales model,the decision is determined based on the revenue sharing ratio.