A framework for evaluation of supply chain coordination by contracts under O2O environment

Kannan Govindan*, Andreea Malomfalean

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Resumé

Over the past decade, a significant change has occurred in the way businesses progress, and that change is largely due to rapidly changing technology. The entire world depends on the online network that has radically changed our perspective of how business should be managed. The faster a company adapts, the more quickly that company can outpace its competitors, and a new approach that is attracting attention is called Online to Offline (O2O). This paper establishes a comparison based on O2O approach; our model considers two types of demand under three coordination mechanisms (revenue-sharing, buy-back, and quantity flexibility contracts). We demonstrate that the best outcome and the highest profit is achieved with the O2O deterministic demand under the quantity flexibility agreement. However, the stochastic demand case attains the same result. This paper presents a fruitful introduction to this emerging topic, and future research might compare several coordination mechanisms using the Stackelberg game theory.

OriginalsprogEngelsk
TidsskriftInternational Journal of Production Economics
Vol/bind215
Sider (fra-til)11-23
ISSN0925-5273
DOI
StatusUdgivet - sep. 2019

Fingeraftryk

Supply chains
Industry
Game theory
Profitability

Citer dette

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A framework for evaluation of supply chain coordination by contracts under O2O environment. / Govindan, Kannan; Malomfalean, Andreea.

I: International Journal of Production Economics, Bind 215, 09.2019, s. 11-23.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - A framework for evaluation of supply chain coordination by contracts under O2O environment

AU - Govindan, Kannan

AU - Malomfalean, Andreea

PY - 2019/9

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KW - Quantity flexibility contracts

KW - Revenue-sharing contracts

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