Research Article

Quality Effort Strategy of O2O Takeout Service Supply Chain under Three Operation Modes

Table 1

Notation and definitions.

NotationDefinitions

Unit cost of offline rent
The market size
Customer preference coefficient for online channel
The catering business’s revenue sharing rate extracted by the platform
The rider’s revenue sharing rate extracted by the platform or the catering business
Average distribution cost for the rider
Self-price elasticity coefficient
Cross-price elasticity coefficient
Quality of service sensitivity parameter of the demand
Cost factor for enhancing quality of online service for the platform
Cost factor for enhancing quality of offline service for the catering business
Cost factor for enhancing quality of distribution service for the distribution rider
Profit functions, ,
Fixed wage for the distribution rider
Cost of establishing platform in SDM

Decision variables
Selling prices of the product in the online channel
Selling prices of the product in the offline channel
The level of service quality efforts of the platform
The level of service quality efforts of the offline service
The level of service quality efforts of the rider