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Goods Quality Coordination Mechanism Design in Community Group-Buying Supply Chain

In: Liss 2023

Author

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  • Zizhe Jiang

    (Beijing Jiaotong University)

Abstract

Community group buying is a new type of group buying. Similar to traditional group buying, it mainly relies on scale sales and word-of-mouth effects to create rich profits. The quality factor is particularly important in the operation process of community group buying. In this paper, we assume that there is a first-order linear function relationship between the quality effort of the group leader and the quality effort of the platform. The results show that the optimal quality effort is directly proportional to the quality effort coefficient and the profit-sharing coefficient, but inversely proportional to the cost coefficient. The optimal quality effort decision of the platform will also be affected by the Group-leader’s profit sharing. Under the goal of maximizing the total profit of the supply chain, this paper also obtains the profit-sharing coefficient between the platform and the group leader.

Suggested Citation

  • Zizhe Jiang, 2024. "Goods Quality Coordination Mechanism Design in Community Group-Buying Supply Chain," Lecture Notes in Operations Research, in: Daqing Gong & Yixuan Ma & Xiaowen Fu & Juliang Zhang & Xiaopu Shang (ed.), Liss 2023, pages 855-866, Springer.
    • Handle: RePEc:spr:lnopch:978-981-97-4045-1_67
    DOI: 10.1007/978-981-97-4045-1_67
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