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The Influence of Online Subsidies Service on Online-to-Offline Supply Chain

Author

Listed:
  • Qi Xu

    (School of Management, Donghua University, Shanghai, P. R. China)

  • Wen-Jie Wang

    (School of Management, Donghua University, Shanghai, P. R. China)

  • Zheng Liu

    (School of Management, Shanghai Jiao Tong University, Shanghai, P. R. China)

  • Pan Tong

    (School of Management, Donghua University, Shanghai, P. R. China)

Abstract

Online-to-offline (O2O) business model is the new online shopping model in which consumers purchase products or services online and get the products or services in offline physical store. Online subsidies service which provides subsidies for online order is the common way adopted by O2O business to expand the market demand. The demand changes brought by online subsidies service will temporarily disrupt the supply chain balance. In this paper, the O2O supply chain with online subsidies service is modeled to analyze the influence of demand disruption on O2O supply chain performance at the beginning. Then, the optimization of O2O supply chain with online subsidies service to face demand disruption is discussed.

Suggested Citation

  • Qi Xu & Wen-Jie Wang & Zheng Liu & Pan Tong, 2018. "The Influence of Online Subsidies Service on Online-to-Offline Supply Chain," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(02), pages 1-18, April.
  • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:02:n:s0217595918400079
    DOI: 10.1142/S0217595918400079
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    References listed on IDEAS

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    1. Li, Jian & Wang, Shouyang & Cheng, T.C.E., 2010. "Competition and cooperation in a single-retailer two-supplier supply chain with supply disruption," International Journal of Production Economics, Elsevier, vol. 124(1), pages 137-150, March.
    2. Xu Chen & Xiaojun Wang & Xinkuang Jiang, 2016. "The impact of power structure on the retail service supply chain with an O2O mixed channel," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(2), pages 294-301, February.
    3. Wen, Fenghua & Gong, Xu & Cai, Shenghua, 2016. "Forecasting the volatility of crude oil futures using HAR-type models with structural breaks," Energy Economics, Elsevier, vol. 59(C), pages 400-413.
    4. Huang, Song & Yang, Chao & Liu, Hui, 2013. "Pricing and production decisions in a dual-channel supply chain when production costs are disrupted," Economic Modelling, Elsevier, vol. 30(C), pages 521-538.
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    Cited by:

    1. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    2. Zhou, Wei & Zhang, Keang & Zhang, Ying & Duan, Yunlong, 2021. "Operation strategies with respect to insurance subsidy optimization for online retailers dealing with large items," International Journal of Production Economics, Elsevier, vol. 232(C).
    3. Xiaoyan Xu & Suresh P. Sethi & Sai‐Ho Chung & Tsan‐Ming Choi, 2023. "Reforming global supply chain management under pandemics: The GREAT‐3Rs framework," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 524-546, February.

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