The Influence of Online Subsidies Service on Online-to-Offline Supply Chain

Online-to-offline (O2O) business model is the new online shopping model in which consumers purchase products or services online and get the products or services in offline physical store. Online subsidies service which provides subsidies for online order is the common way adopted by O2O business to expand the market demand. The demand changes brought by online subsidies service will temporarily disrupt the supply chain balance. In this paper, the O2O supply chain with online subsidies service is modeled to analyze the influence of demand disruption on O2O supply chain performance at the beginning. Then, the optimization of O2O supply chain with online subsidies service to face demand disruption is discussed.