Abstract
As coronavirus disease 2019 (COVID-19) continues to spread, online consumption habits in China have changed significantly. Thus, the booming online-to-offline (O2O) food ordering and delivery industry via the online bakery have been changing customers’ food shopping behavior. This article proposes a comparison relying on advanced O2O strategy for a single-vendor-single-retailer integrated system. Three coordination mechanisms consist of revenue-sharing, buy-back, and quantity flexibility contracts have been employed for optimizing the order quantity. Replenishment strategies and temperature for the supply chain members are considered based on the new retailing framework. Herein, the authors suggest an algorithm for the computation of the optimal solution. Lastly, numerical examples and sensitivity analysis are also conducted to clarify the usefulness of the proposed model in the food supply chain. Sensitivity analysis revealed a number of managerial insights. For example, the results obtained under O2O operations can be compared with those obtained under online/offline operations (under various parameters settings) to determine an opportune moment for three coordination mechanisms.
Highlights
Tsarouhas PanagiotisSeveral recent studies have appeared to tackle the new retailing (NR) issue, which is the phrase coined by Jack Ma, Alibaba Executive Chairman [1]
New retailing is one sector undergoing an Internet of Things (IoT)-driven revolution, as traditional offline retail stores such as convenience stores and supermarkets have become the point of convergence for online and online integration
Due to the evolution of O2O technologies, the coordination mechanism will be incorporated into the classic inventory model
Summary
Several recent studies have appeared to tackle the new retailing (NR) issue, which is the phrase coined by Jack Ma, Alibaba Executive Chairman [1]. Alibaba was significantly implementing NR and online, offline, logistics, and data across the individual value chain to be involved. New retailing is one sector undergoing an Internet of Things (IoT)-driven revolution, as traditional offline retail stores such as convenience stores and supermarkets have become the point of convergence for online and online integration. The online-to-offline (O2O) business model will revolutionize the customer experience in retailing, allowing companies to introduce innovative customer services. The study is still at an early stage in evaluating NR, not to mention a paucity of literature on this subject. Du and Jiang [3] evaluated that the offline service quality problems of
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