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How should local Brick-and-Mortar retailers offer delivery service in a pandemic World? Self-building Vs. O2O platform.

ABSTRACT: The Covid-19 pandemic has dramatically changed consumer purchase behavior, and the "stay-at-home order" policy has altered the operations of brick-and-mortar (B&M) retail stores. These changes have induced local B&M retailers to start online retailing with home delivery as an added option. B&M retailers can choose to offer online retailing on their own (referred to as self-building mode) or via a third-party online-to-offline (O2O) platform (referred to as platform mode). This paper investigates how the interplay between capacity, pricing, and online retailing mode is affected by the absence/presence of the pandemic. We characterize the equilibrium between the B&M retailer and the O2O platform provider. We find that the impact of the "stay-at-home orders" on B&M retailers differs by the online retailing mode. Interestingly, we find that the "stay-at-home orders" does not necessarily lower the B&M retailer's profit if they engage in online retailing. Under self-building mode, the stay-at-home order leaves the B&M retailer with just the online channel. We identify the threshold delivery cost above (below) which the B&M retailer's profit is lower (higher) than before. Under the platform mode, the "stay-at-home order" alters the retailer's sales channel from dual channel to single channel, which mitigates the competition between the retailer and the O2O platform. The retailer's profit increases if it has sufficiently high capacity. Finally, we extend the model to examine the effect of a "reopening policy" with a government subsidy. We find that although the subsidy improves the B&M retailer's profitability, it may hurt the consumer surplus under some conditions. We suggest that governments take the B&M retailer's capacity and operations mode into account when designing subsidy policies.

SUBMITTER: He B

PROVIDER: S-EPMC8483890 | biostudies-literature |

REPOSITORIES: biostudies-literature

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Project description:In this work, there was developed a modular container based on the principle of integrated product development (IPD), as a device to facilitate the distribution of mortar between workplaces during the production of a multi-story building, as part of the IPD strategy applied to a project under development. Such a project deals with the distribution of mortar to perform activities that use it. Since IPD is a strategy that encompasses several factors and agents, whose primary aim is to maximize the total quality of a product, all lifecycle of a product development aims to minimize risks of security, of use, economics, and markets. Implementing the IPD in buildings is complex, and many times during the development process, there is necessary to develop tools and artifacts to improve the process itself. The IPD diagnosed the distribution of the mortar as a critical task in the building process. Here is presented one solution adopted by the IPD design team to improve the transportation logistics of mortar, according to the product of lifecycle management (PLM) in the production of buildings. The device created following the same criteria of the global project in its development since it should meet the product IPD and meet the specific criteria of its future production. Then, by applying finite element analysis, throughout its development, it was possible to reduce the amount of welding, cut plates, and estimated time for its production. Forward, the design PLM was satisfactorily fulfilled for the device, and the global project, once it completes the design of the device, the integrated development of the production and distribution of the mortar was realized. Highlights • Under developing countries, usually do not use collaborative product development.• The application of the DfX principles needs more improvement in construction.• Product Lifecycle management still a challenge in the construction market.• A product can achieve high quality if design and production methods are integrated.• Finite element analysis helps designers to predict issues in construction sites.

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How should local Brick-and-Mortar retailers offer delivery service in a pandemic World? Self-building Vs. O2O platform.

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