ONLINE AND OFFLINE COOPERATION UNDER BUY-ONLINE, PICK-UP-IN-STORE: PRICING AND INVENTORY DECISIONS

摘要

This study considered the problem of pricing and inventory decision-making where an online retailer and an offline retailer cooperate in a setting where buy-online, pick-up-in-store (BOPS) is implemented. Given the extra revenue generated from additional sales by BOPS customers who purchase additional products at the offline outlet, we considered revenue sharing, service subsidy, and inventory subsidy contracts among the coordinating supply chain partners. Optimization models under centralized and decentralized decision-making structures were established, and the solution was found for the equilibrium states of these optimization models. The results from numerical experiments were examined. We found that (1) the optimal stocking factor had different variation trends with the increase in additional sales under a centralized structure and under the three contracts in decentralized scenarios; (2) the revenue sharing contract was the most effective among the three contracts for coordinating online and online retailers, and it was optimal for both retailers if the additional sales parameter was relatively low and online cost share was small; and (3) an inventory subsidy contract had strong operability and steadiness under different product characteristics.