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Controlling inventories in omni/multi-channel distribution systems with variable customer order-sizes
Linnaeus University, School of Business and Economics, Department of Management (MAN). NTNU, Norway;Lund University, Sweden.ORCID iD: 0000-0001-6945-608x
Lund University, Sweden.
Lund University, Sweden.
2023 (English)In: Omega, ISSN 0030-2228, E-ISSN 1541-3764, Vol. 114, article id 102745Article in journal (Refereed) Published
Abstract [en]

The fast growth of e-commerce and omni/multi-channel retailing brings new challenges for efficient inventory management. One such challenge concerns service differentiation across channels when up-stream central warehouses satisfy both direct customer demand and replenishment orders from down-stream retailers. Motivated by industry collaboration, we address this issue by developing a combined stock method for control of one-warehouse-multiple-retailer inventory systems with direct customer de-mand at the central warehouse. The combined stock method, used for service differentiation at the cen-tral warehouse, may be described as a critical level policy. The computationally efficient heuristics we present are designed to deal with real-life one warehouse multiple retailer inventory systems character-ized by highly variable customer order-sizes, ( R, Q) policies at all stock points, and fill rate constraints. A numerical study, including real data from two different companies, illustrates that the heuristics perform well; offering near optimal solutions close to target fill rates, with significant opportunities to reduce total inventory costs compared to existing methods. (c) 2022 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 114, article id 102745
Keywords [en]
Inventory, Multi-channel, Multi-echelon, Stochastic, Service level
National Category
Business Administration
Research subject
Economy, Business Informatics
Identifiers
URN: urn:nbn:se:lnu:diva-116644DOI: 10.1016/j.omega.2022.102745ISI: 000889148000002Scopus ID: 2-s2.0-85137305774OAI: oai:DiVA.org:lnu-116644DiVA, id: diva2:1701505
Available from: 2022-10-06 Created: 2022-10-06 Last updated: 2024-04-08Bibliographically approved

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Berling, Peter

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CiteExportLink to record
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Citation style
  • apa
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