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This paper considers an outsourced supply chain comprising a contract manufacturer (CM), an original equipment manufacturer (OEM) and an online platform. In addition to providing contract manufacturing services to the OEM, the CM enters the market using the customer‐to‐manufacturer (C2M) strategy. Two baseline models and four encroachment models with different selling modes are modeled to explore the interaction among CM encroachment, selling modes and the C2M strategy. We find that the CM will always encroach if brand substitution is sufficiently high. However, the CM will still encroach despite brand substitution being low if the platform charges the OEM a high commission rate in Scenario PR. The results also show that the CM may increase or decrease the wholesale price charged to the OEM according to his dependence on the OEM channel and direct channel. Finally, we find that after CM encroachment, the OEM is worse off, while the platform may be better or worse off. The profits of the CM, OEM, and platform decrease if customers are more concerned about production flexibility. Our work provides guidance for CM encroachment from the perspective of channel choice and product strategy and offers managerial insights into C2M practice. [ABSTRACT FROM AUTHOR]

Packaging has become an important concern of fresh food supply chains and will exert a growing influence under environmental policies. In this paper, we have discussed three specific issues to investigate fresh food supply chains' packaging strategy, that is, whether to use disposable packaging containers (DPCs) or reusable packaging containers (RPCs), whether to purchase or rent RPCs, and the influences of environmental policies. Our research has generated some key findings. First, we find that penalty (such as taxes) and reward (such as subsidies) are simultaneously needed to motivate supply chains to choose RPCs. In terms of the "purchasing or renting" choice, it highly depends on the relative magnitude of the purchase and rental subsidies, along with the number of uses of RPCs and the perishability of fresh food. We also conclude that reusing RPCs for more times has two‐sided effects, that is, the effect of cost saving and the effect of accelerated deterioration. Thus, it is not recommended to excessively reuse RPCs. In addition, we make two extensions. First, we consider endogenous tax rate and subsidy rates and discuss from the perspective of social welfare. Second, we consider endogenous sales price and rental price of RPCs and study the optimal decisions of the RPC operator. Results show that the government should establish a classified tax and subsidy system for packaging containers, and meanwhile benchmarking prices for RPC services should be set to curb the RPC operator's free‐riding behavior. [ABSTRACT FROM AUTHOR]

Purpose: Information asymmetry and poor solvency caused by uncertainties in supply chains are the root causes of supply chain financing risks (SCFR). The purpose of this paper is to explore the effect of supply chain integration on reducing SCFR by incorporating the mechanisms of information sharing and controlling supply chain risks (SCR). Design/methodology/approach: This paper proposes hypothesis to discuss the impact of integration on SCFR and the mediating roles of alleviating information asymmetry and mitigating SCR, aiming at discovering factors and mechanisms to reduce SCFR. The research model was validated by applying structural equation modeling on survey data from 321 Chinese small and medium-sized enterprises (SMEs). Findings: Integration significantly reduces SCFR by dual approaches of information sharing and mitigating SCR, confirming that alleviating information asymmetry to reach information transparency and controlling SCR to reduce uncertainties facilitate less SCFR. Research limitations/implications: SMEs should enhance integration capability to reduce SCFR as it greatly influences the evaluation of financial service providers on SMEs and the sustainable financing capacity of SMEs. Additionally, any other methods that can improve information sharing and reduce SCR should be attached if possible. Originality/value: This study represents a pioneering attempt to analyze the impact of integration on reducing SCFR by exploring the specific mechanisms of alleviating information asymmetry and mitigating SCR. Meanwhile, few prior empirical studies have highlighted the importance of SCFR. [ABSTRACT FROM AUTHOR]

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Copyright of Journal of Southeast University (English Edition) is the property of Journal of Southeast University Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)