Research on the application of supply chain revenue sharing contracts under omni-channel retail BOPS mode
by Bingda Zhang; Zixia Chen; Zelin Chen; Yang Peng
International Journal of Computing Science and Mathematics (IJCSM), Vol. 20, No. 1, 2024

Abstract: In the context of modern retail and mobile e-commerce, the buy online and pick-up in store (BOPS) model offers a promising opportunity to boost profits by seamlessly integrating online and in-store shopping resources in the omni-channel supply chain. This study employs the Stackelberg game model to optimise strategies and contracts for manufacturers and retailers in both online and traditional in-store shopping markets. This is the first innovative analysis of the impact of revenue-sharing contracts on the profit returns of different entities in the omni-channel supply chain. By incentivising BOPS operations through revenue-sharing contracts, this approach protects traditional in-store shopping while capitalising on the advantages of online and in-store integration to enhance profitability. The results of the system simulation and the numerical validation show that revenue-sharing contracts outperform traditional wholesale price contracts, achieving Pareto optimisation and creating a win-win situation for all stakeholders who are involved in the omni-channel supply chain.

Online publication date: Thu, 11-Jul-2024

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