IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v11y2023i16p3610-d1221538.html
   My bibliography  Save this article

Platform Operations under Dual-Channel Catering Supply Chain

Author

Listed:
  • Xin Li

    (School of Business, Macau University of Science and Technology, Macau, China
    These authors contributed equally to this work.)

  • Kenan Li

    (School of Logistics Management and Engineering, Nanning Normal University, Nanning 530011, China
    These authors contributed equally to this work.)

  • Yongjian Li

    (School of Fashion and Textiles, The Hong Kong Polytechnic University, Hongkong, China)

Abstract

In the modern catering business model, restaurants usually use established platforms to promote their food and use two channels to sell their food: online and offline sales. We construct demand functions for online and offline, considering promotion and substitution relationships by a revised Bertrand model. We first consider three classic models: the decentralized decision model, the equilibrium decision model, and the centralized decision model. In the decentralized decision model, the platform decides both the promotional effort and the online discount; in the equilibrium decision model, the platform decides the online discount, while the food service provider decides the promotional effort. In the centralized decision model, the takeaway platform and the food service provider have maximized the overall profit as the decisive goal. We find that the online discount decreases in price when the impact factor of the online promotion is high but increases in price when the impact factor of the online promotion is low. Then, we analyze and compare the results under three models. We find that when the substitution factor is low enough, or the impactor factor of online promotion is low enough, the global optimal platform discount is higher than the equilibrium platform discount and the decentralized online discount; otherwise, the results are the opposite. In addition, the global optimal promotional effort is always higher than the optimal promotional effort in the decentralized model. When the substitution factor is low enough, or the impactor factor of online promotion is low enough, the global optimal promotional effort is higher than the equilibrium optimal promotional effort; otherwise, the result is the opposite.

Suggested Citation

  • Xin Li & Kenan Li & Yongjian Li, 2023. "Platform Operations under Dual-Channel Catering Supply Chain," Mathematics, MDPI, vol. 11(16), pages 1-33, August.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:16:p:3610-:d:1221538
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/11/16/3610/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/11/16/3610/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yanli Fang & Zhuoyi Ren & Fang Yang, 2023. "The Impact of Carbon Allowance Allocation Rules on Remanufacturing Decisions in a Closed-Loop Supply Chain," Mathematics, MDPI, vol. 11(13), pages 1-24, June.
    2. Viswanathan, S. & Wang, Qinan, 2003. "Discount pricing decisions in distribution channels with price-sensitive demand," European Journal of Operational Research, Elsevier, vol. 149(3), pages 571-587, September.
    3. Krishnan S. Anand & Ravi Aron, 2003. "Group Buying on the Web: A Comparison of Price-Discovery Mechanisms," Management Science, INFORMS, vol. 49(11), pages 1546-1562, November.
    4. Govindan, Kannan & Malomfalean, Andreea, 2019. "A framework for evaluation of supply chain coordination by contracts under O2O environment," International Journal of Production Economics, Elsevier, vol. 215(C), pages 11-23.
    5. Chunhua Tang & Erbao Cao & Zhanwen Shi, 2023. "Channel Competition and Coordination of a Dual-Channel Supply Chain under Interval Demand," Mathematics, MDPI, vol. 11(12), pages 1-22, June.
    6. Yingxiu Zhao & Sitong Zhou, 2023. "The Impact of Two-Sided Market Platforms on Participants’ Trading Strategies: An Evolutionary Game Analysis," Mathematics, MDPI, vol. 11(8), pages 1-18, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Yu-Chen & Cheng, Hsing Kenneth & Ding, Chao & Li, Shengli, 2017. "To join or not to join group purchasing organization: A vendor's decision," European Journal of Operational Research, Elsevier, vol. 258(2), pages 581-589.
    2. Yingxiao Li & Jianheng Zhou, 2022. "Sustainable Supplier’s Equilibrium Discount Strategy under Random Demand," Sustainability, MDPI, vol. 14(8), pages 1-12, April.
    3. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. Liang, Zhiyuan & Tang, Yili & Yu, Jianing & Wang, Yacan, 2024. "A collective incentive strategy to manage ridership rebound and consumer surplus in mass transit systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 182(C).
    5. Benioudakis, Myron & Zissis, Dimitris & Burnetas, Apostolos & Ioannou, George, 2023. "Service provision on an aggregator platform with time-sensitive customers: Pricing strategies and coordination," International Journal of Production Economics, Elsevier, vol. 257(C).
    6. Li, Yimeng & Xiong, Yu & Mariuzzo, Franco & Xia, Senmao, 2021. "The underexplored impacts of online consumer reviews: Pricing and new product design strategies in the O2O supply chain," International Journal of Production Economics, Elsevier, vol. 237(C).
    7. Dixit, Ashutosh & Whipple, Thomas W. & Zinkhan, George M. & Gailey, Edward, 2008. "A taxonomy of information technology-enhanced pricing strategies," Journal of Business Research, Elsevier, vol. 61(4), pages 275-283, April.
    8. Schotanus, Fredo & Telgen, Jan & de Boer, Luitzen, 2008. "Unfair allocation of gains under the Equal Price allocation method in purchasing groups," European Journal of Operational Research, Elsevier, vol. 187(1), pages 162-176, May.
    9. Adeinat, Hamza & Pazhani, Subramanian & Mendoza, Abraham & Ventura, Jose A., 2022. "Coordination of pricing and inventory replenishment decisions in a supply chain with multiple geographically dispersed retailers," International Journal of Production Economics, Elsevier, vol. 248(C).
    10. Biancalani, Francesco & Gnecco, Giorgio & Riccaboni, Massimo, 2022. "Price-volume agreements: A one principal/two agents model," European Journal of Operational Research, Elsevier, vol. 300(1), pages 296-309.
    11. Longyuan Du & Ming Hu & Jiahua Wu, 2022. "Contingent stimulus in crowdfunding," Production and Operations Management, Production and Operations Management Society, vol. 31(9), pages 3543-3558, September.
    12. Arthur M. Geoffrion & Ramayya Krishnan, 2003. "E-Business and Management Science: Mutual Impacts (Part 2 of 2)," Management Science, INFORMS, vol. 49(11), pages 1445-1456, November.
    13. Pal, Brojeswar & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2014. "Joint pricing and ordering policy for two echelon imperfect production inventory model with two cycles," International Journal of Production Economics, Elsevier, vol. 155(C), pages 229-238.
    14. Duan, Lisha & Ventura, José A., 2019. "A Dynamic Supplier Selection and Inventory Management Model for a Serial Supply Chain with a Novel Supplier Price Break Scheme and Flexible Time Periods," European Journal of Operational Research, Elsevier, vol. 272(3), pages 979-998.
    15. Qiu, Xuan & Lee, Chung-Yee, 2019. "Quantity discount pricing for rail transport in a dry port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 563-580.
    16. Konstantin Kogan, 2019. "Discounting revisited: evolutionary perspectives on competition and coordination in a supply chain with multiple retailers," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(1), pages 69-92, March.
    17. Raunaq Srivastav & Pritee Ray, 2020. "Contracts Choice in Retailer-led Supply Chain," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 19(1), pages 77-90, June.
    18. Xinxin Li & Yuxin Chen, 2012. "Corporate IT Standardization: Product Compatibility, Exclusive Purchase Commitment, and Competition Effects," Information Systems Research, INFORMS, vol. 23(4), pages 1158-1174, December.
    19. Oktay Karabağ & Barış Tan, 2018. "Analysis of a group purchasing organization under demand and price uncertainty," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 844-883, December.
    20. Bi, Gongbing & Geng, Botao & Liu, Lindong, 2019. "On the fixed and flexible funding mechanisms in reward-based crowdfunding," European Journal of Operational Research, Elsevier, vol. 279(1), pages 168-183.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:11:y:2023:i:16:p:3610-:d:1221538. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.