A Decision Making in Third-Party Platform Purchasing Service Considering Logistical Factors

Abstract

This paper establishes a model for a two-level supply chain composed of one retailer and one third-party platform. The model describes that the platform participates in retailer procurement issues considering delivery time. The optimal decision of the third-party platform and retailer under different service decision modes is studied. The study concluded that centralized decision-making is superior to decentralized decision-making. Secondly, this paper also proves that the optimal delivery time under the two decision-making methods is consistent. The optimal delivery time is determined by the market demand structure and the cost characteristics, not affected by the form of third-party platforms and retailers.