Supplier-Driven B2B e-Markets

Electronic markets (e-markets, EMs) have emerged as a key enabler to drive supply chain collaboration. In practice, a lot of the core supply chain approaches can now be better effective by using the EMs. This study examines the erformances of the decentralized channels under EMs and traditional markets (TMs), while selling a perishable product with non-linear demand function. This article provides optimal joint decisions, including the retail price, wholesale price, channel revenue fraction, and replenishment schedule in supplier-driven supply chains under vendor-managed inventory with revenue-sharing contracts in TMs and EMs, respectively, over a multi-period planning horizon, so that the profits are maximized. The numerical results show that the solutions generated by the EMs outperforms those by the TMs in the profits of the channel, retailer, and supplier, and then channel Pareto improvements can be achieved.