Research On Service And Pricing Strategy Of O2O Supply Chain Under Potential Demand Interruption

In recent years,the steady development of the caller business industry and consumers’ need for experiential shopping have prompted many retail enterprises to start to form a new sales layout.By integrating online and offline sales channels,convenience of online shopping and experience of offline shopping are combined to create a new generation of O2 O shopping mode.O2 O shopping mode not only brings practical benefits to retail enterprises and makes consumers’ channel choices more diversified,but also brings new challenges to enterprises’ supply chain management.In the current era of "big data + post-epidemic",the frequent occurrence of information security problems,the acceleration of news transmission caused by the emergence of we-media platforms,and the large-scale transmission of the epidemic in China all make the market prone to the phenomenon of demand interruption,thus leading to a greater potential risk of demand interruption for retail enterprises’ channel demand.Therefore,how to make decisions on pricing and service level of O2 O supply chain under the background of potential demand interruption is a problem that needs to be solved by retail supply chain members.This paper will focus on the pricing and service level decision of O2 O supply chain under the background of potential demand interruption,considering that the demand of each channel may be interrupted or transferred to other channels.Based on the two-level supply chain of the dominant platform retailer and supplier,the supply chain pricing and service level decision model under two scenarios of whether the demand interruption exists or not is established.The backward induction method and other methods are used to solve the problem of the platform retailer and supplier under the decentralized and centralized decision modes.Four Stackelberg-Nash equilibria were obtained in two scenarios and two decision modes.Based on the solution,the results of the model are further analyzed,including the overall impact of demand interruption on the supply chain members’ equilibrium decision,and the impact of the main interruption parameters of demand interruption,namely the probability of demand interruption and the proportion of interruption quantity transfer on the member equilibrium decision.Through the analysis,it is found that the demand interruption phenomenon will make suppliers reduce the wholesale price and adversely affect their profits.From the perspective of the internal influence mechanism,the interruption probability is negatively correlated with the wholesale price,while the interruption volume transfer ratio has a positive impact on the wholesale price.In terms of retail channel pricing,the impact of demand disruption on decentralized and centralized modes is basically the same,that is,channel pricing will be reduced by disruption on the whole,but may be increased when the amount of channel disruption is positive.From the perspective of internal influence mechanism,channel pricing is positively correlated with the interruption volume transfer ratio,and when the demand transfer ratio is large,the pricing will increase with the interruption probability of other channels,and vice versa.In addition,channel pricing is negatively correlated with its own interruption probability.In terms of channel service level setting,the influence of demand interruption phenomenon and internal mechanism on channel service level in centralized mode is similar to that on channel pricing in centralized mode,but the influence on channel service level in decentralized mode is slightly different.In the decentralized mode,if the channel interruption is positive or relatively small,the retailer will improve the service level of the channel,and vice versa.From the perspective of internal influence mechanism,channel service level is negatively correlated with its own interruption probability and interruption volume transfer proportion,and positively correlated with other channel interruption probability and interruption volume transfer proportion.In terms of the impact on profit,both the retailer’s profit under the decentralized mode and the system’s profit under the centralized mode are positively correlated with the proportion of interruption volume transfer,but whether the interruption impact increases its profit depends on the potential demand scale and the gap in channel interruption volume.At the same time,when the channel demand transfer proportion is large in the centralized mode,when the channel demand transfer proportion is large and the potential effective demand scale is large in the decentralized mode,the profit will increase with the interrupt probability of other channels,and vice versa.In addition,the profit in the remaining cases is negatively correlated with the probability of interruption.