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| Research on Omni-Channel Supply Chain Structure with BOPS |
| KONG Ruixiao，GUAN Zhenzhong，LUO Li |
| 1. Sichuan University, Chengdu, China；2. Southwest Jiaotong University, Chengdu, China |
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Abstract This paper studies the supply chain structure with Buy-Online-and-Pick-up-in-Store(BOPS) under omni-channel retailing. Two scenarios are discussed, namely the online only sales and combination of the online and offline channels, to analyze the impact of the BOPS strategy on price, demand and profit of a retailer. The results show that BOPS is not always beneficial to the retailer. For the scenario of online only sales, the retailer can benefit more when the unit handling cost of implementing BOPS is lower. For the scenario of combination of the online and offline channels, the retailer is more profitable when both the unit handling cost of implementing BOPS and the hassle costs of consumers choosing the BOPS channel are lower. In both scenarios, the smaller the difference between consumers’ valuation of online and offline products is, the better the retailer implements the strategy.
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Received: 09 January 2019
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