Shibo Li.  Research on Optimal Function Relationship between Inventory Management and Supply Chain Management of Large B2C E-commerce Platform Based on Ordinary Differential Equation.  Dynamic Systems and Applications 29 (2020) No. 3, 938-957

https://doi.org/10.46719/dsa202029343

ABSTRACT.
This article applies the theory of ordinary differential equations to establish a model of online direct sales channel selection with a large manufacturer as the leader, and gives the conditions for manufacturers to choose different online direct sales channels. A B2C retailer is the leader to establish an online direct sales channel. A dual-channel supply chain model consisting of electronic and retail channels is given, and various balanced solutions of the model are given. Analyze the influence of the bargaining power of the e-commerce platform and the commission rate charged by the platform on various equilibrium solutions. The results show that: the cost of the manufacturer’s self-built online sales platform, the increase in operating and management costs brought to the platform when renting a B2C e-commerce platform, and the manufacturer’s ability to bargain for rent will affect its choice of online direct sales channels; meanwhile, the operating and management costs The ability to negotiate and bargain will also affect the willingness to rent out the B2C e-commerce platform. Both parties’ pricing, sales volume, product wholesale prices, service levels, profit margins will be affected by the bargaining power of the e-commerce platform and the proportion of the commissions that the platform collects from manufacturers. Through the research model of this paper, it provides theoretical and data support for solving the optimal function relationship between inventory management and supply chain management of large B2C e-commerce platforms.

Keywords: ordinary differential equation; B2C e-commerce platform; inventory and supply chain; optimal function