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A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand

Author

Listed:
  • Biswajit Sarkar

    (Department of Industrial Engineering, Yonsei University, Seoul 03722, Korea)

  • Bikash Koli Dey

    (Department of Industrial Engineering, Hongik University, Seoul 04066, Korea)

  • Mitali Sarkar

    (Information Technology Research Center, Chung-Ang University, Seoul 06974, Korea)

  • Ali AlArjani

    (Department of Mechanical and Industrial Engineering, College of Engineering, Prince Sattam bin Abdulaziz University, Al Kharj 11942, Saudi Arabia)

Abstract

Every industry always tries to provide the best service to its consumers. To provide better service to the consumer and optimize profit, a sustainable online-to-offline retailing strategy is proposed in this current study. Both online and offline systems are considered here, i.e., to provide the best service, the industry sells its products online and offline. Due to the consideration of online and offline systems, the selling price of the products is also different for different modes, and the demand for a particular product is the combined demand of online demand and offline demand, which depend on the selling price of the product. Moreover, the exact lead time and exact backorder are calculated to obtain the system’s exact cost or profit, which directly improves the system’s service. Different investments are incorporated to optimize the total system profit. A distribution-free approach is utilized to solve this model. Numerical examples are provided to prove the applicability of the model in reality. Sensitivity analysis is performed based on critical parameters. Special cases and graphical representations also prove the global optimality of the current study.

Suggested Citation

  • Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:1756-:d:494676
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    Cited by:

    1. Pinyi Yao & Syuhaily Osman & Mohamad Fazli Sabri & Norzalina Zainudin, 2022. "Consumer Behavior in Online-to-Offline (O2O) Commerce: A Thematic Review," Sustainability, MDPI, vol. 14(13), pages 1-24, June.
    2. Bingbing Cao & Tianhui You & Chunyi Liu & Jian Zhao, 2021. "Pricing and Channel Coordination in Online-to-Offline Supply Chain Considering Corporate Environmental Responsibility and Lateral Inventory Transshipment," Mathematics, MDPI, vol. 9(20), pages 1-30, October.
    3. Irfanullah Khan & Biswajit Sarkar, 2021. "Transfer of Risk in Supply Chain Management with Joint Pricing and Inventory Decision Considering Shortages," Mathematics, MDPI, vol. 9(6), pages 1-20, March.
    4. Dey, Bikash Koli & Sarkar, Mitali & Chaudhuri, Kripasindhu & Sarkar, Biswajit, 2023. "Do you think that the home delivery is good for retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    5. Talita Borges Teixeira & Rosane A. G. Battistelle & Adriano Alves Teixeira & Camila Zanchettin Bonacina & Marinez Cristina Vitoreli, 2022. "Sustainability in the Supply Chain: Analyzing the Role of the Focal Company and Training in the Implementation of SDGs," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    6. Jingfu Huang & Gaoke Wu & Yiju Wang, 2021. "Retailer’s Emergency Ordering Policy When Facing an Impending Supply Disruption," Sustainability, MDPI, vol. 13(13), pages 1-21, June.
    7. Rui Song & Zhongming Wu, 2023. "Centralized Decision Making in an Omnichannel Supply Chain with Stochastic Demand," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    8. Eli Haim HANI, 2021. "The Effect Of Key Business Success Factors On Start-Up Performance," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 18, pages 117-129, December.
    9. Mandal, Anindya & Pal, Brojeswar, 2023. "Investigating dual-channel green supply chain considering refurbishing process and product recycling with environmental awareness effort," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 695-726.
    10. Aidin Salamzadeh & Morteza Hadizadeh & Niloofar Rastgoo & Md. Mizanur Rahman & Soodabeh Radfard, 2022. "Sustainability-Oriented Innovation Foresight in International New Technology Based Firms," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    11. Lixi Zhou & Tijun Fan & Jie Yang & Lihao Zhang, 2022. "Monopolistic vs. Competitive Supply Chain Concerning Selection of the Platform Selling Mode in Three Power Structures," Sustainability, MDPI, vol. 14(17), pages 1-27, September.

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