Research on Incentive and Coordination Strategy of Fresh Products’ Supply Chain with Delivery Time Under New Retail

The New Retail focuses on the high integration between online and offline channels. The main problems faced by the development of the New Retail are the revenue balance of all decision subjects, the pricing strategy, and the coordination of online and offline channels. This paper considers the effect of the new retail firms’ delivery time. It establishes a two-part tariff contract to study the decision-making and coordination of the dual-channel supply chain. This paper establishes cooperative and non-cooperative models and employs the cooperative model as the benchmark case to realize the coordination. It is found that when the delivery time has little effect on the market demand, the offline store often should pay a more fixed charge to the new retail firm. With the increase in the impact of delivery time on market demand, the fixed charge paid by the offline store becomes smaller. Under the coordination decision model, the offline store pays a fixed charge to compensate for the new retail firm’s early delivery costs. However, its interest still increases compared with the decentralized decision model. This research studies the internal environment of the New Retail. In the external environment, the New Retail has specific impacts on the transformed offline markets, limiting the findings' generalizability. This research models the time-dependent demand for fresh products and proposes an incentive scheme to coordinate the dual channel. Further, it demonstrates that the price can be significantly decreased with the designed contract, and all the supply chain members can benefit from Pareto improvement