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Mathematics
Article . 2023 . Peer-reviewed
License: CC BY
Data sources: Crossref
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Mathematics
Article . 2023
Data sources: DOAJ
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Platform Operations under Dual-Channel Catering Supply Chain

Authors: Xin Li; Kenan Li; Yongjian Li;

Platform Operations under Dual-Channel Catering Supply Chain

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.

Countries
Hong Kong, China (People's Republic of)
Related Organizations
Keywords

Dual-channel, platform operations, Price discrimination, Supply chain, price discrimination, dual-channel, Online promotion, platform operations; dual-channel; online promotion; price discrimination; supply chain, QA1-939, Platform operations, online promotion, supply chain, Mathematics

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
Green
gold