Retailing and servicing strategies for an imperfect production with variable lead time and backorder under online-to-offline environment

Abstract

<p style='text-indent:20px;'>Online-to-offline (O2O) retailing strategy is one of the trending topics in the business industry. The current study focuses on an advanced retailing strategy for a single item for a retailer and a manufacturer. Reminding the revolution in the internet world, a dual-channel retailing system is developed in this current study. The retailer offers their item through online and offline mode, though the producer prefers only offline mode. Besides, manufacturer provide different services to their clients through the product's life cycle to keep the company's brand image. The product's demand depends on the selling price and its service for both channels (offline and online) to their customers. To upgrade the services, some investments are implied to decrease the lead time. In expansion, to increase the demand and optimize the system benefit, the manufacturer gives their customers different services (unpaid, partially paid, full paid). The supply chain's benefit is optimized beside the ideal esteem of the decision variables. {Application of different service strategies in O2O retailing are near about <inline-formula><tex-math id="M1">\begin{document}$ 71\% $\end{document}</tex-math></inline-formula> beneficial compared to traditional supply chain. Numerical experiment proved that full-paid services are near about <inline-formula><tex-math id="M2">\begin{document}$ 79\% $\end{document}</tex-math></inline-formula> beneficial compare to partially paid service; however, partially paid services are recommended for industrial benefit.} Different numerical examples, exceptional cases, and sensitivity analyses were performed to prove the model's applicability along with graphical representations.</p>

An Omnichannel Retailing Operation for Solving Joint Inventory Replenishment Control and Dynamic Pricing Problems From the Perspective of Customer Experience

“…Hong experience in augmented reality and virtual reality on customer decision making [7]. Under the O2O environment, to keep the brand image of companies via the life cycle of products, manufacturers provide clients with various services [30]. Applying different service strategies in the O2O retail model can obtain about 71% more profits than the traditional supply chain.…”

Perceived Importance and Quality Attributes of Automated Parcel Locker Services in Urban Areas

“…The increase in retail e-commerce services brings new challenges, especially in urban areas [2], for the logistic sphere on how to deliver specific goods to final consumers in the shortest possible time at reasonable costs. There are several different methods and approaches to the delivery of goods to the final retail recipient, depending on the specificity of the industry, the type of goods, and customer preferences, creating different policies for online-to-offline (O2O) retail strategies [3][4][5] or even integrating online and physical stores through omnichannel (OC) distribution [6]. The most popular ways of delivering goods to a retail customer are by using couriers; logistics service providers; e-commerce operators; or pickup at the store: BOPIS (Buy Online, Pick-Up In-Store) or other PUDO (Pick Up Drop Off) points.…”

Adoption of Blockchain Technology for Enhanced Traceability of Livestock-Based Products

“…For instance, the online-to-offline (O2O) supply chain strategy uses an online trigger to prompt potential customers to visit the outlet in person to complete the purchase, which is gaining popularity in certain industries, such as print-on-demand. [6,7]. Recent research suggests the advantage of strong coordination between manufacturers and retailers in decentralized supply chain management to address the risk of demand fluctuation in short life-cycle products [8].…”