Online Finance in a Dual-Channel Supply Chain with a Capital-Constrained Manufacturer

Lei Fang () and Yi Gao
Additional contact information
Lei Fang: Business School, Nankai University, Tianjin 300071, P. R. China
Yi Gao: Business School, Nankai University, Tianjin 300071, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2023, vol. 40, issue 02, 1-37

Abstract: This paper investigates a dual-channel supply chain which consists of a capital-constrained manufacturer and an e-commerce platform. The manufacturer sells its products through an offline direct channel and an online platform. The platform can serve as a marketplace or a reseller for the manufacturer, while the platform provides online finance to the manufacturer. We discuss the equilibrium decisions of the manufacturer and the platform when the platform serves as two different roles. We find that when the total production quantity of the manufacturer who with an online marketplace channel exceeds a threshold, the manufacturer tends to choose the platform’s marketplace role for the online channel, unless the wholesale price and the upper limit of demand are high. When production quantity is below this threshold, unless the wholesale price and the upper limit of demand are low, the manufacturer tends to choose the platform’s reseller role for the online channel. The platform tends to choose the role whose production quantity exceeds the threshold. If both are exceeded, the platform chooses the marketplace role when the wholesale price is low, and if both are not exceeded, the marketplace role is better when the wholesale price is high.

Keywords: Dual-channel supply chain; e-commerce; online finance (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595922500208
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:40:y:2023:i:02:n:s0217595922500208

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595922500208

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().