Addressing omni-channel supply chain challenges: the importance of supply chain coordination

This research paper discusses the development of collaborative and non-collaborative decision-making approaches in an omni-channel supply chain. The objective is to enhance integration between online and offline channels by implementing the buy online and pick-up in store (BOPS) strategy. The decisions under consideration involve pricing and retailer service level (RSL) determination by the retailer, as well as delivery time and online service level (OSL) determination by the supplier. In this study, we utilise a Nash game approach to examine the decision-making problem, where both the retailer and supplier are motivated to maximise their respective profits within decentralised, centralised, and coordinated systems. The research findings indicate that in the centralised system, as the cost coefficient of OSL increases, there is a decrease in the values of price variables and RSL. However, in the decentralised system, the values of these variables increase. Additionally, in the centralised system, an increase in the OSL parameter leads to a corresponding increase in the delivery time. Conversely, in the decentralised system, the value of this decision variable decreases. The present study also provides some managerial insights through the analysis of the critical parameters of the model. [Submitted 5 April 2024; Accepted 3 September 2024]