Coordination of Online Shopping Supply Chain based on Customer Balking

• 1、Business School, Hunan University, Changsha 410082, China

Abstract：Logistics service is an important part that will affect customers\' online shopping decision-making. For a two-stage online shopping supply chain composed of an online retailer and a third-party logistics enterprise (TPL), this paper has established the product demand functions in high logistics timeliness and general logistics timeliness respectively according to the two logistics timelines provided by TPL. Meanwhile, we comprehensively consider the influence of customer balking behavior and logistics timeliness selection on the decision-making as well as the profit of online shopping supply chain enterprises, and adopt the interest coordination mechanism to achieve the coordination of online shopping supplyCoordination of Online Shopping Supply Chain based on Customer Balking chain. The results indicate that the unit freight difference charged by the online retailer to customers with high logistics timeliness should be half of the unit price of expedited logistics cost. In fact, customer balking behavior does not affect the pricing decisions of the online retailer and TPL, but it may have a negative impact on product demand and the interests of supply chain enterprises, and this negative effect can be reduced by incentivizing TPL to improve logistics timeliness. Besides, the interest coordination mechanism can achieve a reasonable allocation of supply chain profits and Pareto improvement. Finally, the effectiveness of the interest coordination mechanism is proved by a numerical example, and this paper also tests the sensitivity analysis of relevant parameters.

Keywords： management science and engineering online shopping supply chain balking behavior logistics timeliness interest coordination mechanism supply chain coordination