Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace

This paper examines a platform supply chain comprising a manufacturer and an e-platform in the presence of a secondary marketplace. Motivated by the industrial cases, the paper considers the e-platform either a marketplace or a retailing channel. The former is referred as a platform mode and the latter is referred as a wholesale mode. This paper analytically characterizes the optimal operational strategies for the platform supply chain with the two different channel modes. The paper also conducts a comprehensive comparison between the two channel modes, by which an analytical examination is developed to reveal how to select the optimal channel modes and the critical factors affecting this choice in the platform supply chain. In addition, dynamics of the optimal collect-and-resell strategies for the e-platform are characterized, which indicates how the e-platform should implement different collect-and-resell strategies in response to different channel modes selected by the manufacturer.