Industrial Engineering Journal ›› 2022, Vol. 25 ›› Issue (2): 59-69.doi: 10.3969/j.issn.1007-7375.2022.02.008

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A Study of the Fresh Retailer's Optimal Logistics Decision in Transformation Based on Community O2O Mode and the Coordination of Supply Chain

LIANG Zhanhong1, HOU Qiang2   

  1. 1. School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China;
    2. Management College, Shenyang University of Technology, Shenyang 110870, China
  • Received:2020-08-27 Published:2022-04-28

Abstract: In order to study the optimal logistic decision-making of the traditional retailer when he develops the online sales channels in the community online to offline mode, based on the consumer utility theory, employing a function of convenience, the decision-making models under three strategies of retailer sales offline, sales online and operating in self-logistics, and cooperating with a third-party logistics service provider are constructed, to analyze the changes in retailer's optimal product pricing, optimal effort level and optimal service scope. In the two-level supply chain system with a third-party logistics service provider as the leader, a Stackelberg game is employed to obtain the optimal decision-making of both parties in the equilibrium state, and a coordination contract of "revenue sharing + cost sharing" is designed. The results show that offline sales strategy attracts consumers by lower price and moderate quality product, and its profits largely depend on the potential demand of fresh products within the service scope; the retailer under the self-logistics strategy has a more positive response to changes in consumer demand, the product pricing, preservation and distribution service effort level is highly dependent on the combination of consumer preferences; logistics outsourcing strategy has a wide range of services, and the change of consumer sensitivity has little impact on its profit level; the coordination contract has a greater incentive effect on the third-party logistics service providers, and effectively improves the overall profits and consumer utility of the supply chain. According to the numerical analysis, when both the contract ratios are 0.85, the supply chain achieves coordination.

Key words: fresh agricultural products, community O2O, transformation, logistics decision, consumer utility

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