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Optimising small-scale electronic commerce supply chain operations: a dynamic cost-sharing contract approach

Sahani Rathnasiri, Pritee Ray, Carlos A. Vega-Mejía, Sardar M. N. Islam, Nripendra Rana Orcid Logo, Yogesh Dwivedi Orcid Logo

Annals of Operations Research

Swansea University Authors: Nripendra Rana Orcid Logo, Yogesh Dwivedi Orcid Logo

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Abstract

For small-scale electronic commerce supply chains, designing effective strategies to improve operational effectiveness, market share and long-term survival are essential aspects. However, researchers have given less attention in addressing these issues. This study proposes a dynamic cost-sharing con...

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Published in: Annals of Operations Research
ISSN: 0254-5330 1572-9338
Published: Springer Science and Business Media LLC
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa59549
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Abstract: For small-scale electronic commerce supply chains, designing effective strategies to improve operational effectiveness, market share and long-term survival are essential aspects. However, researchers have given less attention in addressing these issues. This study proposes a dynamic cost-sharing contract for an e-tailer supply chain to address the issues of asymmetric information, long-term integration, and ineffective costs. We include consistency constraints to obtain stable incentives over time and eliminate the need for re-negotiation. The findings emphasise that the dynamic contract significantly reduces the overall supply chain costs. The consistency constraints guarantee high incentives, thus assuring the players remain in the total contract period and enable long-term integration.
Keywords: E-tailer supply chain, Online retailing , e-commerce, Dynamic contract,Information asymmetry, Long-term integration
College: School of Management