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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (12): 264-273.doi: 10.16381/j.cnki.issn1003-207x.2023.0522

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Order Decision and Supply Chain Coordination Considering Demand Uncertainty and Return Heterogeneity under the BOPS Mode

Shouyu Ma(), Yanqing Liang, Feng Xiong, Penghui Lou   

  1. School of Business Administration,Zhongnan University of Economics and Law,Wuhan 430073,China
  • Received:2023-03-29 Revised:2023-08-15 Online:2025-12-25 Published:2025-12-25
  • Contact: Shouyu Ma E-mail:stephanema@126.com

Abstract:

The emergence of omni-channel new retailing such as BOPS has played an important role in reducing online and offline channel conflicts, promoting channel integration and enhancing consumers’ shopping experience, and has been widely used in fast fashion and other industries. Considering mixed procurement channels composed of traditional procurement and drop-shipping, the heterogeneity of multi-channel returns and the randomness of consumer demand, tthe retailer’s optimal ordering decision and the coordination of supply chain contract under the BOPS mode are analyzed.Based on the game theory, the onmi-channel ordering decision newsboy model under the BOPS mode is established with the goal of maximizing profits. The centralized decision-making is taken as the benchmark of the supply chain optimal strategy. The analysis results show that the retailer’s expected profit is a concave function about the order quantity, and there is a unique extreme value to maximize the retailer’s expected profit. The return rate of different channels has significant differences on the retailer’s optimal order quantity. Then the coordination effect of buy-back contract and revenue sharing contract on decentralized supply chain is investigated. The findings indicate that neither the buy-back contract nor the revenue sharing contract can achieve supply chain coordination in BOPS mode due to the problem of return. Therefore, a new threshold buy-back revenue sharing contract is proposed to coordinate the supply chain. The analysis shows that the threshold buy-back revenue sharing contract of joint buy-back and revenue sharing can achieve supply chain coordination and Pareto improvement, and reach the global optimization of the supply chain.It can further enrich and improve the research theory of omni-channel field, and provide theoretical guidance for enterprises’ operational decision-making and supply chain collaborative operation under the BOPS mode.

Key words: BOPS, drop-shipping, return, ordering decision, supply chain coordination

CLC Number: