Research on Retailer's Optimal Order Strategy in B2B Electronic Trading Market Environment

Abstract

B2B electronic marketplaces have provided the participants a variety of services, such as spot trade, capacity options, providing retailers a new avenue to do their business, and thus has changed supply chain structures. This paper investigates the retailer’s optimal ordering strategies in a B2B electronic marketplace, where market demand and market prices of commodities are uncertain. The study shows that the options in B2B electronic marketplaces provide a new chance for retailers to reduce risk of market uncertainty. These findings also have significant meaning for buyers, suppliers and the third-party B2B electronic marketplaces in supply chain.