A Study of the Buyer-Oriented Collaboration and Stimulation Approach of E-Supply Chain Management

Abstract

A buyer-oriented electronic supply chain management (e-SCM) to the core issue of supply chain management (SCM) with coordination and stimulation approach by adopting the return contract was studied, and a practical explanation and operable plan with coordination and stimulation in e-SCM on the basis of return contract was propose. When the supplier in such supply chain gives the buyer a certain rebate rate to unsold products, the SCM can be coordinated. The buyer always has the motivation to join the e-SCM, but the supplier’s motivation depends on the rate of commission and coordination mechanism. When the rate of commission is lowered to a certain level, the supplier will join the e-SCM even without any extra incentive. However, when the rate of commission is increased to a certain higher level, the supplier will not join the e-SCM even if the buyer offers the highest subsidy. When the situation is between the above two cases, i.e., if the buyer gives a certain amount of subsidy to the supplier, the whole supply chain still can be coordinated.