Internet book retailing and supply chain management: an analytical study of inventory location speculation and postponement

Internet book retailing and supply chain management: an analytical study of inventory location speculation and postponement

0.00 Avg rating0 Votes
Article ID: iaor2006714
Country: United Kingdom
Volume: 41
Issue: 3
Start Page Number: 159
End Page Number: 177
Publication Date: May 2005
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors: ,
Keywords: organization, optimization, e-commerce
Abstract:

Internet retailing models support supply chains where consumer order locations are decoupled from inventory locations. In this setting, retailers dynamically consider inventory location speculation and postponement to fulfill their orders. Particularly, retailers can manage to fulfill orders through two opposing strategies: in-stock inventory and drop-shipping. This paper extends the supply chain management literature by modeling Internet retailers' decisions to balance their offerings between these two strategies. The results show how retailers depend more on both of these strategies as their market share and product popularity increase. Thus, both inventory management strategies may be considered simultaneously to better manage Internet retailers' inventory.

Reviews

Required fields are marked *. Your email address will not be published.