Bi-Level Programming Model For The Research Of The Profit Sharing Of Online Group-Buy

With the U.S GROUPON getting listed on the stock market, the market of domestic online group-buy is entering the phase of survival of the fittest. All of the group-buy websites are taking advantage of methods to attract the customer which including increasing input in advertisement, cutting down the discount, increasing the content of the website service and so on, and they are all entering the phase of raising the user amount. The major sources of income of the group-buy websites comes from shared revenue, advertising revenue and commission revenue, so they concern some important factors which including setting the shared proportion, advertising costs, the price of goods "and so on. The group-buy websites must define these elements to enhance their competitiveness and increase the profits.According to the focus on domestic group-buy market, there is still no particular method to teach group-buy websites how to reach success under the current market with competitive environment. Aiming at the problem now exist, this paper will use the bi-level programming model to solve the problem of supply chain "group-buy website-commercial tenant-consumer". This model is using the group-buy websites as top decision maker which targeting at the maximum revenue, and considering the commercial tenant as lower executives which also targeting at the maximum of its income. In addition, with the considering of the complex demands in actual life, this paper calculates the optimal sharing ratio and protocol price between the group-buy website and the merchant, which including both the condition of linear and non-linear demand function. Furthermore, according to the feasibility analysis of the model using the actual example, this paper discusses the optimal revenue situation of the group-buy websites with the investigating of the relationship among the price, cost and sharing ratio.