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The Complexity and Entropy Analysis for Service Game Model Based on Different Expectations and Optimal Pricing
Yimin Huang1, Xingli Chen2, Qiuxiang Li3
1The College of Management & Mconomics, North China University of Water Resources and Electric Power, Zhengzhou 450046, China.
Entropy (Basel, Switzerland)
|December 3, 2020
Summary
This study models multichannel sales, finding that buy online and pick up from the retailer (BOPS) enhances manufacturer-retailer cooperation. Rapid service changes by manufacturers can lead to chaotic market dynamics, requiring careful management.
Area of Science:
- Supply Chain Management
- Game Theory
- E-commerce
Background:
- Multichannel sales are prevalent in China, integrating online and offline operations.
- The study addresses the service game and supply chain dynamics in a multichannel retail environment.
Purpose of the Study:
- To develop a dynamic service game model for a multichannel supply chain with online and offline channels.
- To analyze the impact of pricing and service strategies on channel profits and system stability.
- To investigate the role of the buy online and pick up from the retailer (BOPS) strategy.
Main Methods:
- Literature review of service games and multichannel supply chains.
- Construction of a dynamic service game model.
- Theoretical analysis and numerical simulations using entropy theory, game theory, and chaotic dynamics.
Main Results:
- Increased service elasticity weakens system stability; retailer feedback parameters have no effect.
- The BOPS channel improves manufacturer-retailer cooperation and reduces channel conflict.
- Rapid service adjustments by manufacturers can induce chaotic dynamics, increasing system entropy and unpredictability.
Conclusions:
- The BOPS strategy is beneficial for mitigating online-offline channel conflicts.
- Manufacturers must manage service decision-making speed to avoid chaotic states.
- Feedback control or additional information is necessary to stabilize systems prone to chaos.
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