Research on Maximum Profit of the Supply Chain under E-Commerce Environment

According to various reports, E-Commerce has been developing rapidly in China. Under this circumstance, companies are faced with the choice of whether to shift to the E-supply chain from the traditional one. In this paper, literature on supply chain are reviewed first, followed by the modeling of profit function of individual firm in the supply chain and the whole supply chain by taking investment scale on E-Commerce as a variable and the setting sales quality as a function which depends on both the retail price and investment scale on E-Commerce. Additionally, this paper also demonstrates the existence of supply chain’s maximum profit, and finally put forward further research directions.