Download or read book Optimizing Omni Channel Fulfillment with Store Transfers written by Joydeep Paul and published by . This book was released on 2019 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The presence of different distribution channels in omni-channel retail makes the fulfillment process challenging. When consumers can buy online and pick up their purchased goods at a store, the stores are often visited by a vehicle that supplies the pick-up points (PUPs) and by a vehicle that replenishes the store's inventory. We study the benefit of exploiting any spare capacity in the vehicles replenishing store inventories to reduce online order fulfillment cost by transferring online orders to these vehicles at one or more of the stores visited. This involves choosing transfer locations and the set of stores whose online orders are transferred at these locations so as to minimize the online order fulfillment cost. We present a mixed integer linear programming model as well as an effective and efficient heuristic for solving this problem. An extensive computational study shows that significant benefits can be achieved by sharing capacity across the two channels.

Download or read book Optimal Fulfillment Strategies in an Omnichannel Retail Supply Chain written by and published by . This book was released on 2020 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the development of digital technologies, more and more brick-and-mortar stores are starting to offer the online channel to sell their products. For example, Walmart and Whole Foods are selling fresh groceries from both their websites and store locations. As a result, such omni-channel retailers need to serve both online and in-store demand. To do that, the retailer may choose to fulfill online demand from a centralized distribution center (DC), or by utilizing inventory of stores. In this thesis, I explore the optimal fulfillment strategies of an omni-channel retailer. Firstly, consider customers' behavior when they face online and in-store purchase options. Using utility theory, model customers' behavior in preferring either channel. Secondly, I explore the impacts of retailers' fulfillment choices on its inventory cost, shipping and delivery cost, as well as overall profitability. This thesis identifies conditions under which either fulfillment strategy (i.e., from DC or stores) is optimal. And find that the optimal fulfillment strategy is dependent on the total number of stores, unit inventory cost at the stores and DC, unit delivery cost, product prices and number of stores. Case studies based on Manhattan and Los Angeles are provided to further investigate the retailer's fulfillment decision as well as the impacts of its pricing decision, and geographic and cost characteristics. For Manhattan, for both exogenous and endogenous price cases, the regions where store fulfillment are optimal first decrease and then increases as the total number of stores increases. For Los Angeles, the region where store fulfillment is optimal always increases with the total number of stores.

Download or read book Real Time Omnichannel Fulfillment Optimization written by Zuguang Gao and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: To successfully implement an omnichannel fulfillment strategy, it is important to protect offline customers from stock-outs due to over-fulfillment of online customers. A natural question is when to fulfill online orders by using in-store inventory. In practice, retailers usually implement a so-called booking limit algorithm that imposes a threshold (i.e., booking limit) on the maximum number of online orders of a product that can be fulfilled from stores, and this booking limit is usually static. In this paper, we aim to theoretically quantify the performance of online booking limit algorithms in the context of omnichannel fulfillment. We first prove that for the continuous version of the problem where partial fulfillment is allowed, a booking limit algorithm with static booking limits can achieve tight competitive ratio when initial inventory is identical across stores, which extends the celebrated tightness result of booking limit algorithms in the context of single-leg two-fare revenue management studied by Ball and Queyranne (2009) from one dimension to higher dimensions. We then show that static booking limit algorithms cannot achieve tight competitive ratio when initial inventory is non-identical even for the two-store setting, and develop a more sophisticated algorithm where booking limits can be adjusted over time based on realized demands via solving a math program. This adaptive booking limit algorithm can achieve tight competitive ratio. To extend our analysis and algorithm to the discrete setting, we propose a novel online rounding scheme, and prove that the expected profit of this “randomized booking limit” algorithm exactly matches the corresponding deterministic fractional algorithm. Finally, we conduct a concise numerical study to demonstrate the performance of booking limit algorithms under realistic (non-worst-case) demand sequences.

Download or read book Omni Channel Retail and the Supply Chain written by Paul Myerson and published by CRC Press. This book was released on 2020-11-25 with total page 283 pages. Available in PDF, EPUB and Kindle. Book excerpt: Omni-Channel Retail and the Supply Chain The days of going to the local department store to buy a television, view the options available, and make a purchase now seem "quaint." The emergence of the internet, smartphones, social media, and other technologies has opened a world of new options for consumers (and businesses) to review, research, and buy online with an ever-increasing array of delivery options. The emergence of e-commerce has resulted in what is commonly known today as "omni-channel" marketing, in which customers engage with companies in a variety of ways, including in a physical store or online via websites and mobile apps. This process puts the supply chain "front and center," as consumers are increasingly demanding and browsing, buying, and returning goods through various channels, not just the traditional "brick and mortar" way. To accomplish this with high levels of service while remaining profitable requires real-time visibility of inventory across the supply chain and a single view of consumers as they continuously move from one channel to another. While this is a boon to consumers, it has made the already complex global supply chain even more challenging to manage. On top of that, the 2020 Covid19 pandemic has accelerated this omni-channel retail trend, as consumers need even more ways to order and additional options for last-mile delivery, such as curbside pickup. Covid19 has exposed a lack of flexibility and readiness, resulting in shortages of everything from toilet paper and meats to personal protective equipment (PPE) and ventilators. It has been a real-life example of the "bullwhip effect," where variability at the consumer end of the supply chain results in increased variability as one goes upstream towards distributors, manufacturers, and suppliers. This results in shortages, misallocations, and increased costs. No longer can a manufacturer, distributor, or retailer of consumer products just "fill the pipeline" and wait for orders to come in. Now, they must anticipate various purchases and delivery items, while at the same time minimizing costs. To do this is no easy task, requiring a Lean, agile, and responsive supply chain. Until now, there was no existing "playbook" for organizations to navigate their way through this new world. This book describes the impact of omni-channel marketing on the supply chain and logistics functions, and is intended to help management meet the needs of not only today’s ever-changing world but to anticipate what may be required in the future to achieve superior customer service, profitability, and a competitive advantage.

Download or read book Omni Channel Retailing and Its Requirements in the Supply Chain written by Carina Sauter and published by GRIN Verlag. This book was released on 2015-12-30 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2014 in the subject Business economics - Supply, Production, Logistics, grade: 1,1, IE Business School, Madrid, course: Production & Supply Chain Management, language: English, abstract: This thesis is a description of the state of the art of the Omnichannel retail strategy with a focus on the changes necessary in supply chain design. Its purpose is to provide a comprehensive overview on omnichannel retailing that can serve as a first source of information for companies thinking about adapting this strategy. There is no single external source that combines the description of omnichannel retailing with details of how to implement this strategy yet, so this thesis makes it significantly easier for retailers to familiarize with the topic and get impulses for further research. The introduction shows the developments that led to the strategic move, which eases understanding the concept and its purpose. The thesis finds that technological innovations, changing shopping behavior, increasing expectations, and intensifying online competition were the major drivers affecting this shift. It continues to describe the common omnichannel initiatives before it gets into more detail on what supply chain and logistics changes are necessary to support them. First, it shows that the application of RFID technology and IT platforms creates an end-to-end transparent supply chain, which delivers the core capability to pursue this strategy: complete inventory visibility. Second, the solutions to improve fulfillment speed are presented. Both upgrades in order processing inside the warehouse and innovative last mile solutions are discussed in detail. Describing the benefits of omnichannel retailing, the paper shows that it perfectly meets the requirements of today’s retailers. Not only does the strategy improve profitability and productivity, it also helps them meet expectations, learn more about their customers and use this knowledge to sustainably compete in the market. It also finds that there are significant challenges to overcome before reaping these benefits. Large investments and added complexity need to be faced during setup and a non-aligned organization and the inability to engage employees are major problems during execution. As the retail environment evolves at a rapid pace, the paper finally presents strategies for companies that have fully developed omnichannel capabilities. These ensure that retailers can also compete once omnichannel is the new normal.

Download or read book Optimizing Order routing Decisions written by Federico Markowicz and published by . This book was released on 2017 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis provides a deep mathematical analysis of the diverse alternatives for routing models considering an Omni-channel supply chain. The natural evolution of supply chains from traditional brick-and-mortar stores to an omni-channel supply chain, encompassing and merging e-commerce together with a multi-channel concept, allows businesses to reach new levels of operational efficiency by leveraging inventory closer to the customer and making decisions on the fly on how to better and more cheaply provide a service/product to the final consumer. The flexibility and benefits, unfortunately, do not come without a certain dose of complexity and further development of the supply chain tactical implementation and systems. New alternatives to fulfill customer orders are available, which require greater screening among the different alternatives. An effective routing model becomes essential to make sure these alternatives are properly considered in order to satisfy both the consumer and retailer objectives, such as on-time delivery of orders, retail stores' service levels, and fulfillment costs.

Download or read book Operations in an Omnichannel World written by Santiago Gallino and published by Springer Nature. This book was released on 2019-10-15 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: The world of retailing has changed dramatically in the past decade. Sales originating at online channels have been steadily increasing, and even for sales transacted at brick-and-mortar channels, a much larger fraction of sales is affected by online channels in different touch points during the customer journey. Shopper behavior and expectations have been evolving along with the growth of digital channels, challenging retailers to redesign their fulfillment and execution processes, to better serve their customers. This edited book examines the challenges and opportunities arising from the shift towards omni- channel retail. We examine these issues through the lenses of operations management, emphasizing the supply chain transformations associated with fulfilling an omni-channel demand. The book is divided into three parts. In the first part, “Omni-channel business models”, we present four studies that explore how retailers are adjusting their fundamental business models to the new omni-channel landscape. The second part, “Data-driven decisions in an omni-channel world”, includes five chapters that study the evolving data opportunities enabled by omni-channel retail and present specific examples of data-driven analyses. Finally, in the third part, “Case studies in Omni-channel retailing”, we include four studies that provide a deep dive into how specific industries, companies and markets are navigating the omni-channel world. Ultimately, this book introduces the reader to the fundamentals of operations in an omni-channel context and highlights the different innovative research ideas on the topic using a variety of methodologies.

Download or read book Logistics and Retail Management written by John Fernie and published by Kogan Page Publishers. This book was released on 2014-04-03 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 21st century has witnessed important changes in retail logistics. Supply chain managers are presented with key challenges as retailers have recognised the strategic role that supply chains play in cost reduction and customer service. The 4th edition of Logistics and Retail Management has been substantially updated to take account of these recent developments in retail logistics. Logistics and Retail Management provides the most up-to-date thinking in retail supply chain management, reflecting the changing needs of the global marketplace and the challenges faced by retailers in the 21st century. With contributions from acclaimed academics and practitioners, it covers global logistics, fashion logistics, e-logistics and green supply chains. The 4th edition features brand new chapters on supply chain management in international fashion and corporate social responsibility in the textile supply chain.

Download or read book Distribution System Design for Omnichannel Retailing written by Jia Guo and published by . This book was released on 2019 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: Omnichannel retailing - serving customers via a combination of physical stores and web-based stores- offers new opportunities and forces traditional retailers to rethink their supply chain design, operational efficiency, revenue/cost streams, and operations/marketing interface. While omnichannel supply chain management has received some attention recently, the role of cross-channel fulfillment, the layout of the omnichannel retail supply chain, and revenue management considering customer channel choice behavior have not been widely studied. This dissertation investigates these three streams in omnichannel supply chain design. In the cross-channel fulfillment stream, we study the optimal supply chain design for a dual-channel retailer that combines the operations of both channels in an omnichannel environment considering demand segmentation, cost structure, and more importantly, the execution ability of the firm. We formulate this problem as a two-stage stochastic programming model and use first-order optimality conditions to study the optimal inventory replenishment decisions and omnichannel strategy decisions under perfect and imperfect demand information. For the second chapter, we extend the dual-channel setting from a single store to N retail stores. We study the transshipment problem based on a two-store case by reformulating the problem into a large scale mixed-integer linear programming model. The third chapter addresses the revenue management stream by focuses on the interface between the retailer's operations and customer's demand. Specifically, this chapter explores the right role for a physical store in an omnichannel environment for an online-first retailer. The main result relates to the trade-off between the increased profits from the newly acquired demand (from the new channel) and the increased fulfillment and operations costs from cannibalized demand.

Download or read book Effective Online Order Acceptance Policies for Omni Channel Fulfillment written by Su Jia and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Problem Definition: Omni-channel retailing has led to the use of traditional stores as fulfillment centers for online orders. Omni-channel fulfillment problems have two components: (1) accepting a certain number of on-line orders prior to seeing store demands, and (2) satisfying (or filling) some of these accepted on-line demands as efficiently as possible with any leftover inventory after store demands have been met. Hence, there is a fundamental trade-off between store cancellations of accepted online orders and potentially increased profits due to more acceptances of online orders. We study this joint problem of online order acceptance and fulfillment (including cancellations) to minimize total costs, including shipping charges and cancellation penalties in single-period and limited multi-period settings.Academic/Practical Relevance: Despite the growing importance of omni-channel fulfillment via online orders, our work provides the first study incorporating cancellation penalties along with fulfillment costs. Methodology: We build a two-stage stochastic model. In the first stage, the retailer sets a policy specifying which online orders it will accept. The second stage represents the process of fulfilling online orders once the uncertain quantities of in-store purchases are revealed. We analyze two classes of threshold policies that accept online orders as long as the inventories are above a global threshold, or a local threshold per region. Results: Total costs are unimodal as a function of the global threshold, and unimodal as a function of a single local threshold holding all other local thresholds at constant values, motivating a gradient search algorithm. Reformulating as an appropriate linear program with network flow structure, we estimate the derivative (using infinitesimal perturbation analysis) of the total cost as a function of the thresholds. We validate the performance of the threshold policies empirically using data from a high-end North American retailer. Our two-store experiments demonstrate that Local Thresholds perform better than Global Thresholds in a wide variety of settings. Conversely, in a narrow region with negatively correlated online demand between locations and very low shipping costs, Global Threshold outperforms Local Thresholds. A hybrid policy only marginally improves on the better of the two. In multiple periods, we study one- and two-location models and provide insights into effective solution methods for the general case.Managerial Implications: Our methods give an effective way to manage fulfillment costs for online orders, demonstrating a significant reduction compared to policies that treat each store separately, reflecting the significant advantage of incorporating shipping in computing thresholds.

Download or read book Essays on Omnichannel Sale written by Elnaz Jalilipour Alishah and published by . This book was released on 2016 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, we study three problems related to omnichannel sale. In the first two chapters, we study omnichannel fulfillment where a retailer can use either the online or the offline channel to back up the other one by fulfilling its demand, because of stockout or low inventory availability. In the last chapter, we study an incentive problem where sales agents compete for a common customer base. This problem is loosely related to similar problems in omnichannel sales – when an online order is filled by an offline store, or vice versa, how should sales credit be shared? In the first chapter, we study store fulfillment strategy of an omnichannel retailer that would like to leverage its established offline retail channel infrastructure to capture online sales after stockout. We consider a single newsvendor-type product that is sold in both online and offline channels to non-overlapping markets with independent Poisson demand. The offline store can fulfill online demand at an additional handling and fulfillment cost, k, but not vice versa. We characterize the optimal rationing policy which determines whether online demand should be fulfilled or not given the remaining time and inventory. Due to the challenges of implementing the optimal policy, we further propose two simple and effective heuristics. We also show that integrating the rationing policy into retailer’s higher-level inventory stocking and supply chain design decisions can have a significant impact on the retailer’s inventory level and profitability. As a result, we propose an integrated policy, where the retailer builds separate inventory stocks for each channel but can use the offline inventory to back up online sales, subject to a rationing heuristic. In the second chapter, we study discounted home delivery strategy of an omnichannel retailer that would like to leverage its online channel to help with offline sales when offline store has limited inventory. We consider a single newsvendor-type product that is sold in both online and offline channels to non-overlapping markets with independent Poisson demand. Store has option to offer customers discount d to incentivize them to accept home delivery of item rather than taking an inventory unit from the store. We assume customers are heterogeneous in their discount sensitivity, ranging from price sensitive to leadtime sensitive. We characterize the optimal dynamic discounting policy which determines at any point in season whether the offline store should offer discount or not, and if yes, the optimal discount level. Again, due to the challenges of implementing the optimal policy, we propose two simple and effective heuristics. We conduct an extensive numerical study and find that retailers can considerably benefit from discounted home delivery policy. In the last chapter, we study sales agent’s competition for a common customer base when sales agents are heavily paid by commission. We assume agents can affect customers perceived service quality through their service time. We build a simple model that captures agents time and quality trade off while competing for a common customer base. We assume that the agent’s service time can increase sales probability, but the agents incur cost for their effort. We show that agent’s speed up in the decentralized setting, in comparison to the central solution, which results in lower expected sale for the system. We suggest financial, operational, and informational tools that can align agent’s incentive with that of the service provider’s.

Download or read book Network and Discrete Location written by Mark S. Daskin and published by John Wiley & Sons. This book was released on 2011-02-14 with total page 519 pages. Available in PDF, EPUB and Kindle. Book excerpt: The comprehensive introduction to the art and science of locating facilities to make your organization more efficient, effective, and profitable. For the professional siting facilities, the task of translating organizational goals and objectives into concrete facilities requires a working familiarity with the theoretical and practical fundamentals of facility location planning and modeling. The first hands-on guide to using and developing facility location models, Network and Discrete Location offers a practiceoriented introduction to model-building methods and solution algorithms, complete with software to solve classical problems of realistic size and end-of-chapter exercises to enhance the reader's understanding. The text introduces the reader to the key classical location problems (covering, center, median, and fixed charge) which form the nucleus of facility location modeling. It also discusses real-life extensions of the basic models used in locating: production and distribution facilities, interacting services and facilities, and undesirable facilities. The book outlines a host of methodological tools for solving location models and provides insights into when each approach is useful and what information it provides. Designed to give readers a working familiarity with the basic facility location model types as well as an intuitive knowledge of the uses and limits of modeling techniques, Network and Discrete Location brings students and professionals alike swiftly from basic theory to technical fluency.

Download or read book Harnessing Omni Channel Marketing Strategies for Fashion and Luxury Brands written by Wilson Ozuem and published by Universal-Publishers. This book was released on 2019-11-15 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a contemporary theoretical insight into the fashion and luxury industry, addressing potential gray areas within the literature. The authors analyze the luxury and fashion industry using multiple perspectives, allowing for a critical comprehensive overview of the phenomenon across diverse streams. The book provides insight into fashion and luxury retailing in the context of both online and brick and mortar retailers based on a variety of market scenarios. It deciphers the rationale of customer behavioral and decision making in online and offline luxury and fashion purchasing contexts. It provides an overview of the challenges that the industry faces with the advent of the evolving omni-channel environment. The multiple theoretical and practical nuances of the fashion and luxury industry are presented. In this sense, the book is a fundamental reference point for the students and academics. This book will be of interest to practitioners in the fashion and luxury retailing sectors. Also, many policy makers will find the conceptual and exploratory insight of this book relevant to their organizational and retailing policies. The new knowledge that is produced in this book is a ground breaker in the fashion and luxury literature. It offers insight from both theoretical and practical perspectives from both retailer and customer perspectives.

Download or read book Exploring Omnichannel Retailing written by Wojciech Piotrowicz and published by Springer. This book was released on 2018-12-05 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book compiles the current state of knowledge on omnichannel retailing, a new concept in which all sales and interaction channels are considered together, and which aims to deliver a seamless customer experience regardless of the channel. It highlights case studies and examples related to each of the many barriers to an omnichannel approach, demonstrating not just success stories, but also failures. While omnichannel has already been recognized as an emerging retail trend, the articles in this book fill an important gap in research on the topic. Providing readers with essential insights on the omnichannel strategy and its implementation, the book will also stimulate academic discussion on this emerging trend.

Download or read book Logistics Operations and Management written by Reza Farahani and published by Elsevier. This book was released on 2011-05-25 with total page 486 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive overview of how to strategically manage the movement and storage of products or materials from any point in the manufacturing process to customer fulfillment. Topics covered include important tools for strategic decision making, transport, packaging, warehousing, retailing, customer services and future trends. An introduction to logistics Provides practical applications Discusses trends and new strategies in major parts of the logistic industry

Download or read book Research Methodologies in Supply Chain Management written by Herbert Kotzab and published by Springer Science & Business Media. This book was released on 2006-01-16 with total page 616 pages. Available in PDF, EPUB and Kindle. Book excerpt: For reseach in all subjects and among different philisopical paradigms, research methodologies form one of the key issues to rely on. This volume brings a series of papers together, which present different research methodologies as applied in supply chain management. This comprises review oriented papers that look at what kind of methodologies have been applied, as well as methodological papers discussing new developments needed to successfully conduct research in supply chain management. The third group is made up of applications of the respective methodologies, which serve as examples on how the different methodological approaches can be applied. All papers have undergone a review process to ensure their quality. Therefore, we hope that this book will serve as a valid source for current and future researchers in the field. While the workshop on “Research Methodologies in Supply Chain Management” took place at the Supply Chain Management Center, Carl von Ossietzky Univ- sity in Oldenburg, Germany, it is based on a collaboration with the Supply Chain Management Group of the Department of Operations Management at the Cop- hagen Business School and the Department of Production Management at the Vienna University of Economics and Business Administration. We would like to thank all those who contributed to the workshop and this book.

Download or read book Multiple Criteria Analysis for Agricultural Decisions Second Edition written by C. Romero and published by Elsevier. This book was released on 2003-03-21 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the Multiple Criteria Decision Making (MCDM) paradigm for modelling agricultural decision-making in three parts. The first part, comprising two chapters, is philosophical in nature and deals with the concepts that define the underlying structure of the MCDM paradigm. The second part is the largest part consisting of five chapters, each of which presents the logic of a specific MCDM technique, and demonstrates how it can be used to model a particular decision problem. In the final part, some selected applications of the MCDM techniques to agricultural problems are presented and thus reinforce the development of an understanding of the MCDM paradigm. The book has been designed for use at different levels: as a textbook for final year undergraduate and postgraduate courses in modelling for decision-making; as a manual for researchers and practising modellers; and, as general reference on the application of MCDM techniques. Readers with basic appreciation of algebra and linear programming can easily follow the contents of this book.