Abstract
This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer's choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.
Original language | English |
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Pages (from-to) | 108-127 |
Number of pages | 20 |
Journal | Transportation Research Part E: Logistics and Transportation Review |
Volume | 130 |
DOIs | |
Publication status | Published - Oct 2019 |
Keywords
- Competition
- Decision structure
- Drop-shipping
- E-Commerce
- Procurement strategy
Cite this
Li, G., Zhang, X., & Liu, M. (2019). E-tailer's procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers. Transportation Research Part E: Logistics and Transportation Review, 130, 108-127. https://doi.org/10.1016/j.tre.2019.08.014