O2O results in traffic congestion reduction and sustainability improvement: Analysis of “Online-to-Store” channel and uniform pricing strategy

Niu, Baozhuang; Mu, Zihao; Li, Baixun

doi:10.1016/j.tre.2018.12.012

Cited by 72 publications

(34 citation statements)

References 42 publications

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“…Reference [25] have developed a mathematical model for determining the minimum picking rate needed in stores for achieving desired service level and the optimal number and timings of picking waves the retailer should execute in an ordering cycle for fulfilling BOPS orders. Reference [22] have developed a stylized model to identify the conditions when uniform pricing strategy and BOPS strategy might dominate. The location of pickup points for collecting BOPS orders plays an important role in the success of this strategy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Moreover, customers visiting the retail stores for picking up their order may buy some additional products during their visit [20], [21]. Introduction of BOPS also increases the environment friendliness of the supply chain as it alleviates traffic congestion [22]. Thus, to reap these benefits of BOPS, a number of MC retail firms in India are planning to launch BOPS option for their customers [23].…”

Section: Introductionmentioning

confidence: 99%

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Facility Selection Model for BOPS Service for an Omnichannel Retail Chain

Jain

Darbari

Kaul

et al. 2022

IEEE Trans. Eng. Manage.

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Retail sector around the world is going through a transition due to digitalization. Customers now demand convenience of online channel with instant fulfilment of offline channel. As a result, the concept of omni-channel retailing has come into existence. In omni-channel retailing, both the channels of a firm are fully or partially integrated. There are many strategies that may be developed by retailers for efficient functioning of the omni-channel retail chain. The choice of such a strategy depends upon the comparative benefits that can be derived from them. One such strategy gaining immense attention of retailers is the Buy Online Pickup in Store (BOPS) strategy. In order to understand this BOPS, we conducted a detail case study of an Indian multi-channel retail chain who is considering the option of launching BOPS option in few of its retail stores. The focus is to evaluate and select a fixed number of operational retail stores to also act as pickup points for online deliveries. K-means clustering is utilized for formation of retail zones as per the number of retail stores to be selected. The retail stores in each zone are evaluated on the basis of a number of criteria such as demand, inventory carrying capacity, cost, and population characteristics using Analytical Hierarchy Process (AHP) and Complex Proportional Assessment-Grey (COPRAS-G). Based on these evaluations the best suitable retail store is selected for expansion from each zone. The result implications drawn in the study can provide an understanding of the future strategies that can be developed by the decision makers of the firm for launching the BOPS option. The study can also be beneficial to other Indian retail firms who can derive meaningful insights from the findings.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Facility Selection Model for BOPS Service for an Omnichannel Retail Chain

Jain

Darbari

Kaul

et al. 2022

IEEE Trans. Eng. Manage.

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“…Considering retailer acting the leader of the supply chain, study a retailer's channel strategy and pricing decision. Niu et al (2019) examine how the uniform pricing and online-to-store channel affect traffic congestion control. The main difference between our study and the existing literature is that we investigate the role of app channel in a supply chain from the retailer's point of view.…”

Section: Literature Reviewmentioning

confidence: 99%

The role of retailer’s app channel in a supply chain with quality decision and different power structures

Xue

2021

RAIRO-Oper. Res.

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The role of retailer's ability to add app channel in a supply chain with quality decision and different power structures is investigated in this paper. Applying a game-theoretic approach, we find that, first, under certain conditions, retailer's ability to add app channel can induce the manufacturer to adjust the wholesale price and product quality in the opposite direction with the manufacturer being the leader. Second, for the manufacturer and the retailer, retailer's ability to add app channel can result in two distinct profit situations regardless of the power structure of supply chain: win-win and lose-win. Moreover, in a retailer-led supply chain, adding app channel will make the whole supply chain better off when the return cost is relatively low or high, while make the whole supply chain worse off when the return cost is moderate. Third, we identify a region of the return cost under which the manufacturer, the retailer, the supply chain and consumers can gain from adding app channel, leading to a Pareto improvement.

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“…(2016) consider the heterogeneity of product value and store‐visit cost, and study the optimal pricing decision of a retailer under product available online only scenario and product available both online and in‐store scenario; Niu et al. (2019) also consider the heterogeneity of product value and store‐visit cost, and study if the retailer should adopt uniform pricing strategy between online and offline channels and BOPS strategy. Some of them study the optimal inventory decision of the retailer, for example, Gao and Su (2017) consider that BOPS provides reliable inventory availability information of an offline channel to consumers, and study optimal inventory decision of the retailer; Shi et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Cooperative advertising and pricing in an O2O supply chain with buy‐online‐and‐pick‐up‐in‐store

Zhang

Bin

2020

Int Trans Operational Res

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This paper investigates the effectiveness of cooperative advertising in an online‐to‐offline (O2O) supply chain where the manufacturer cooperates with the retailer to implement buy‐online‐and‐pick‐up‐in‐store (BOPS) strategy. Considering the coexistence of channel cooperation and channel competition after the implementation of BOPS, we investigate the impact of BOPS on equilibrium results. Then we study the optimal cooperative advertising and pricing strategy of the O2O supply chain. We also identify the effectiveness of cooperative advertising on the O2O supply chain and supply chain members. We find that the implementation of BOPS can partially substitute the incentive effect of cooperative advertising. In addition, convenience coefficient and commission rate, the two key factors of BOPS, have opposite impacts on optimal decisions in most conditions. Therefore, the optimal strategy depends on the balance of the above two factors. Furthermore, we find that cooperative advertising does not always benefit the O2O supply chain and its members.

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O2O results in traffic congestion reduction and sustainability improvement: Analysis of “Online-to-Store” channel and uniform pricing strategy

Cited by 72 publications

References 42 publications

Facility Selection Model for BOPS Service for an Omnichannel Retail Chain

Facility Selection Model for BOPS Service for an Omnichannel Retail Chain

The role of retailer’s app channel in a supply chain with quality decision and different power structures

Cooperative advertising and pricing in an O2O supply chain with buy‐online‐and‐pick‐up‐in‐store

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