WCSE

Research on Supply Chain Coordination based on Lateral Transshipment in the Background of New Retail

Abstract— This paper realizes lateral transshipment coordination between multiple retailers and a supplier in the background of New Retail with parameters such as transshipment price. This paper takes a system with two retailers and one supplier as an example, and make the supplier participate directly in the sales process by an online store. Then, this paper gives the conditions that need to be satisfied in the case of coordinating each retailer and supplier, such as the transshipment price. Finally, the supply chain coordination model is compared with the newsboy model by constructing an example. It is found that the expected system profit and member profit at coordination are higher than under the newsboy model.

Index Terms— lateral transshipment, transshipment price, coordination, multi-retailer.

Jinhao Lv
School of Modern Post
Lingyun Wei
Beijing University of Posts and Telecommunications

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Cite: Jinhao Lv, Lingyun Wei, " Research on Supply Chain Coordination based on Lateral Transshipment in the Background of New Retail, " WCSE 2022 Spring Event: 2022 9th International Conference on Industrial Engineering and Applications, pp. 1634-1640, Sanya, China, April 15-18, 2022.