Designing Buy-Online-and-Pick-Up-in-Store (BOPS) Contract of Dual-Channel Low-Carbon Supply Chain considering Consumers' Low-Carbon Preference

Abstract

Nowadays, buy-online-and-pick-up-in-store (BOPS) is a popular sales project to promote product sales. Implementing BOPS in the dual-channel low-carbon supply chain (DLSC) can not only improve low-carbon manufacturers' profit but also reduce energy consumption in it. This paper focuses on how to design the contract which can ensure the implementation of BOPS in the DLSC consisting of one manufacturer and one retailer considering consumers' low-carbon preference. Based on the analysis of game theory, two kinds of BOPS contract (MW contract with the dominant manufacturer making decision on wholesale price and RW contract with the dominant retailer making decision on wholesale price) with fixed compensation are designed and compared to obtain the better contract which is more effective on the implementation of BOPS. The findings show that MW contract is better than RW contract for the DLSC to implement BOPS. When consumers' low-carbon preference and BOPS preference and the anti-cross-price elasticity are high enough, the DLSC can implement BOPS under the MW contract because it has Pareto efficiency on the profit of the original DLSC. We further find the sales price is decreasing in consumers' low-carbon preference and anti-cross-price elasticity, while the wholesale price is increasing in consumers' low-carbon preference. Finally, the results are verified by numerical examples.