With the rapid development of E-commerce, more and more E-commerce companies use free shipping strategy. Based on a two-stage supply chain consisting of one supplier and one retailer, the paper analyzes the ordering strategy of retailer under two different policies, free shipping policies against quantity and against value. The best ordering strategy a retailer will take to maximize its interest is proposed. The obtained result will be useful for retailers to work out ordering strategy in the E-commerce transaction practice.
ZHOU Yongsheng, WANG Lei, HE Mingke.
RESEARCH ON THE ORDERING STRATEGY OF RETAILERS UNDER A FREESHIPPING POLICY PROVIDED BY SUPPLIERS. Journal of Systems Science and Mathematical Sciences, 2012, 32(3): 288-296 https://doi.org/10.12341/jssms11848