Sales Effort and Coordination in an O2O Supply Chain with Two-Period of Marketing

摘要

O2Osupply chain has been a hot issue worldwide in recent years. This paper studiesa two-period marketing problem in an O2O supply chain consisting of amanufacturer and an offline retailer. Besides the offline channel, themanufacturer owns an online channel which marketsto the online customers and directs potential customers to the offlineretailer. The retailer provides service for both the offline customers and thedirected customers from online channel. The centralized and decentralizedsettings are both analyzed. The sales effort level of the retailer is higherthan that of the manufacturer under centralized setting. The service levels ofboth retailer and manufacturer and supply chain profit under the decentralizedsetting are lower than that of the centralized setting. This paper finds that atwo-way subsidy contract can fully coordinate the supply chain.