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Mathematical Problems in Engineering
Volume 2015, Article ID 939284, 13 pages
http://dx.doi.org/10.1155/2015/939284
Research Article

Electronic Markets Selection in Supply Chain with Uncertain Demand and Uncertain Price

1School of Science, Beijing University of Chemical Technology, Beijing 100029, China
2School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China

Received 14 May 2014; Revised 21 July 2014; Accepted 28 July 2014

Academic Editor: Tsan-Ming Choi

Copyright © 2015 Fengmei Yang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

In recent years, more and more companies start online operation. Electronic market becomes a key component of some companies’ strategy. Supply chain management is another key component of the strategy as being adopted by an increasing number of companies. There are many interactions between electronic market and supply chain. One of the key questions is to select one type of electronic market from the view of supply chain. This paper develops some models to explore the issue of selection between public electronic market and private electronic market in three scenarios where electronic market is used for buying, for selling, and for both selling and buying, respectively. In a public electronic market, neither the supplier nor the retailer is the owner of the electronic market. However, in a private electronic market, there is an owner that is either the supplier or the retailer. Besides demand uncertainty, we take into account the price uncertainty in electronic market. We explore the conditions under which the agent of supply chain selects one certain type of electronic market by comparing expected profits of supply chain members in different scenarios. Some sensitivity analyses are conducted to explore the impact of the customer demand, electronic market retail price, and e-market use fee on the selection of electronic market. Finally, some interesting managerial and academic insights are obtained.