Order fulfillment policies for ship-from-store implementation in omni-channel retailing

Name: Order fulfillment policies for ship-from-store implementation in omni-channel retailing
Author: Bayram, A., Cesaret, Bahriye

İsim	Order fulfillment policies for ship-from-store implementation in omni-channel retailing
Yazar	Bayram, A., Cesaret, Bahriye
Basım Tarihi:	2021-11-01
Basım Yeri	- Elsevier
Konu	Dynamic programming, Omni-channel retailing, Order fulfillment, Retailing, Ship-from-store
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0377-2217
Kayıt Numarası	ca010310-3912-40b8-961c-5a538416ac26
Lokasyon	Business Administration
Tarih	2021-11-01
Örnek Metin	One of the recent trends in omni-channel retailing is ship-from-store which allows a retailer to fulfill online orders by using inventory from a nearby store. The benefits of this fulfillment model include faster delivery, lower shipment costs, higher in-stock probability, increased sales and customer satisfaction, etc. Despite its many benefits, this fulfillment model introduces many new operational challenges to the retailer, including the need to identify from which location to fulfill an online order when it arrives. In this study, we consider a retailer having both online and store operations, with each channel carrying its own inventory. Store orders are fulfilled from store inventories, whereas an online order can be shipped either from an online fulfillment center or from any other store that maximizes the retailer's overall profit. Our study investigates dynamic fulfillment decisions: from which location to fulfill an online order when it arrives. We incorporate the uncertainty both in demand and in the cost of shipment to individual customers to characterize the optimal cross-channel fulfillment policy. Due to the optimal policy being computationally intractable for large-sized problems, we construct an intuitive heuristic policy to guide the retailers in their fulfillment decisions. We find that the proposed heuristic method is effective and obtains solutions within a reasonable amount of time for the cross-channel fulfillment problem.
DOI	10.1016/j.ejor.2020.01.011
Cilt	294

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Order fulfillment policies for ship-from-store implementation in omni-channel retailing

Yazar Bayram, A., Cesaret, Bahriye

Basım Tarihi 2021-11-01

Basım Yeri - Elsevier

Konu Dynamic programming, Omni-channel retailing, Order fulfillment, Retailing, Ship-from-store

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0377-2217

Kayıt Numarası ca010310-3912-40b8-961c-5a538416ac26

Lokasyon Business Administration

Tarih 2021-11-01

Örnek Metin One of the recent trends in omni-channel retailing is ship-from-store which allows a retailer to fulfill online orders by using inventory from a nearby store. The benefits of this fulfillment model include faster delivery, lower shipment costs, higher in-stock probability, increased sales and customer satisfaction, etc. Despite its many benefits, this fulfillment model introduces many new operational challenges to the retailer, including the need to identify from which location to fulfill an online order when it arrives. In this study, we consider a retailer having both online and store operations, with each channel carrying its own inventory. Store orders are fulfilled from store inventories, whereas an online order can be shipped either from an online fulfillment center or from any other store that maximizes the retailer's overall profit. Our study investigates dynamic fulfillment decisions: from which location to fulfill an online order when it arrives. We incorporate the uncertainty both in demand and in the cost of shipment to individual customers to characterize the optimal cross-channel fulfillment policy. Due to the optimal policy being computationally intractable for large-sized problems, we construct an intuitive heuristic policy to guide the retailers in their fulfillment decisions. We find that the proposed heuristic method is effective and obtains solutions within a reasonable amount of time for the cross-channel fulfillment problem.

DOI 10.1016/j.ejor.2020.01.011

Cilt 294