Title: An investigation into e-commerce service chain model algorithm

Authors: Guanglan Zhou; Weihua Su; Renan Liu; Jun Hu

Addresses: School of Statistics, Centre for Studies of Modern Business, Zhejiang Gongshang University, Hangzhou 310018, China ' School of Statistics, Centre for Studies of Modern Business, Zhejiang Gongshang University, Hangzhou 310018, China ' School of Statistics, Centre for Studies of Modern Business, Zhejiang Gongshang University, Hangzhou 310018, China ' School of Statistics, Centre for Studies of Modern Business, Zhejiang Gongshang University, Hangzhou 310018, China

Abstract: On the basis of the traditional fixed-fee contract, three specific contract forms' models (single contract, menu contract and confused contract) are discussed in service supply chain with effort-sensitive demand and asymmetric information. Under the service supply chain management, there is a class of demands with effort-sensitive members and asymmetric information. While efforts of service supply chain members have impact on market demand, the members can have more choices in pursuing profit maximisation in terms of price, volume and effort level. Under such circumstances, there is one more route to realise service supply chain coordination, namely choosing the suitable effort level in the scope of service effort to realise the balance between pricing and effort level on the basis of negotiated price, volume and effort level. Solutions of the three contract models are optimised and analysed. The solutions' effect and meaning are pointed out for the service supply chain contract forms.

Keywords: supply chain; effort level; information asymmetry; contract effect; sensitive demand.

DOI: 10.1504/IJWMC.2018.096016

International Journal of Wireless and Mobile Computing, 2018 Vol.15 No.3, pp.292 - 297

Received: 07 Feb 2018
Accepted: 06 Aug 2018
Published online: 06 Nov 2018 *

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