# New Retailing Problem for an Integrated Food Supply Chain in the Baking Industry
## 2 Problem Description  
New business models have been relentlessly launched in the market due to the rapid advancement of technology and social changes. While internet shopping becomes more efficient and effective, traditional retailers need new digital innovation. An outbreak of coronavirus infection in Wuhan, China, has led to a global epidemic declared a Public Health Emergency of International Concern by the World Health Organization (WHO). COVID-19 is resistant to environment factors, has high penetration ability, and may be lethal. The food supply chain has needed to adjust rapidly to demand-sides shocks, including cake buying and changes in food purchasing patterns as well as planning for any supply-side disruptions due to potential labor shortages and disruptions to transportation and supply networks. However, few empirical studies have been done on this issue. [PERSON] [53] proposed an assessment of implication of the COVID-19 pandemic for the food supply chain regarding the growth of the online grocery delivery sector and the extent to which consumers will prioritize \"local\" food supply chains. [PERSON] et al. [54] investigated an economic model in helping to simulate a responsive food supply chain to match the varying demand and provided decision-making support for rerouting the vehicles during the COVID-19 pandemic. [PERSON] et al. [55] provided an excellent review of the possible transmission ways of COVID-19 through the food supply chain and environment before developing COVID-19 diagnostic tests. Therefore, we develop an integrated food supply chain system as well as discussing the optimal decisions found to maximize the total profit based on the new retailing framework through COVID-19 pandemic. Transportation issues caused another concern about food quality that concerned products' temperature control in customers or distribution centers from COVID hot spots. On the other hand, the traditional retailers recognize that COVID-19 will have a significant impact on their business. Online technology can support customer service staff, engage offline-to-online ordering, and gives sales assistants more opportunities to help customers explore their options. As fresh food deteriorates easily, there has been increasing consumer demand for logistics that ensure the timeliness of deliveries. [PERSON] et al. [56] proposed an agent-based O2O food ordering model (AOFOM) that consists of customers, restaurants, and the online food ordering platform. [PERSON] et al. [57] made a comparison of food shopping with four e-commerce modes: Business-to-consumer (B2C), online-to-offline delivery (O2O Delivery), online-to-offline in store (O2O In-store), and New Retail. [PERSON] et al. [58] provided an excellent review of online food delivery platforms. A fairly large body of literature exists on the supply chain. However, within that literature, there is a surprising lack of information on O2O model. Online food delivery provided a critical lifeline during 2020 COVID-19 pandemic for the tens of millions of people quarantined at home. Such research is still in its infancy, but it may have a contribution to make to comparison the understanding of the above three contracts. Next, the empirical evidence is provided in support of the claim. In order to face the highly competitive environment, the following issues were posed by the manufacturer/retailer:  
_RQ1. What is the optimal shipment size from manufacturer to the retailer?_  
_RQ2. What is the optimal temperature in the food supply chain?_  
_RQ3. What is the optimal order quantity for the retailer?_  
_RQ4. Which of three coordinated agreements attains the best outcome under new retailing framework?_  
The main aim of the present article is to use the inventory model to discuss its properties in comparisons with the overall effects of three coordination mechanisms: Revenue sharing, buy-back, or quantity flexibility.