Title: Research on the application of supply chain revenue sharing contracts under omni-channel retail BOPS mode

Authors: Bingda Zhang; Zixia Chen; Zelin Chen; Yang Peng

Addresses: School of Economics and Management, Shanghai Zhongqiao Vocational and Technical University, No. 3888, Caolanggong Road, Jinshan District, Shanghai, 201514, China ' School of Economics and Management, Shanghai Zhongqiao Vocational and Technical University, No. 3888, Caolanggong Road, Jinshan District, Shanghai, 201514, China ' Department of Business Development, iHealth Labs, Inc., 880 W Maude Ave, Sunnyvale, CA, 94085, USA ' School of Management and E-Business, Zhejing Gongshang University, No. 18, Xuezheng Street, Qiantang District, Hangzhou, 310018, China

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.

Keywords: omni-channel retail; supply chain; BOPS; buy online and pick-up in store; revenue sharing contract.

DOI: 10.1504/IJCSM.2024.139920

International Journal of Computing Science and Mathematics, 2024 Vol.20 No.1, pp.21 - 31

Received: 20 Jul 2023
Accepted: 10 Jan 2024
Published online: 11 Jul 2024 *

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