Industrial Engineering Journal ›› 2023, Vol. 26 ›› Issue (4): 1-8.doi: 10.3969/j.issn.1007-7375.2023.04.001

• System Analysis & Management Decision •     Next Articles

An Optimal Pricing Strategy of Omni-channel Supply Chain under BOPS Retail Service

ZHANG Zijian, LIU Xiaoqiao   

  1. School of Economic and Management, Chongqing Jiaotong University, Chongqing 400074, China
  • Received:2022-04-29 Published:2023-09-08

Abstract: This paper investigates the interaction between manufacturers and retailers (online and offline) in terms of different pricing and service value strategies with the implementation of the "buy-online, pick-up-in-store" (BOPS) omnichannel mode. Using a modified Hotelling model to obtain the market demand function, a manufacturer-driven Stackelberg supply chain model is established to analyze the equilibrium prices and service values of four strategies: centralized dual-channel, centralized omni-channel, decentralized dual-channel and decentralized omni-channel strategies. The four strategies are compared using a numerical simulation. Results show that the retailer's service value has a positive impact on the pricing of supply chain members; the BOPS omni-channel pricing strategy is significantly superior to the dual-channel pricing strategy, and the advantage of the omni-channel strategy is more obvious in a centralized supply chain than that in a decentralized supply chain. Furthermore, the sensitivity analysis shows that the overall supply chain revenue increases with the increase of the market size expansion factor of the BOPS channel; the optimal pricing strategy is a centralized omni-channel strategy.

Key words: BOPS retail services, Hotelling model, omni-channel, supply chain pricing

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