A model for analyzing multi-channel distribution systems

Alptekinoğlu, Aydın; Tang, Christopher S.

doi:10.1016/j.ejor.2003.11.005

Cited by 119 publications

(52 citation statements)

References 13 publications

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“…Successful OC retailers need to be able to fulfill demand from any channel and from any inventory location (Baird and Kilcourse 2011). In the context of multi-channel network design, Alptekinoglu and Tang (2005) and Liu et al (2010) conclude that expanding bricks-and-mortar DCs for online distribution and fulfilling online orders from physical stores pools inventory risks. Our research contributes to further development in this direction by identifying which areas of OC distribution are necessary to achieving excellence in fulfillment and logistics.…”

Section: Qualitative Analyses Of Distribution Design Conceptsmentioning

confidence: 99%

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Distribution systems in omni-channel retailing

Hübner

Holzapfel

Kühn

2016

Bus Res

196

153

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The growing importance of online sales means that traditional bricksand-mortar retailers need to create new distribution systems to serve customers through multiple channels. Building an effective and efficient omni-channel (OC) distribution system, however, leads to multiple challenges. The questions arise for example, from where online orders should be fulfilled, how delivery and return processes can be organized, and which context-specific OC distribution systems exist. Answering these questions retail research and practice require an overall view of the distribution concepts for direct-to-customer and store deliveries in OC retailing, including the associated return processes. This overall picture is still missing in the literature. We conducted an exploratory study to close this observable gap in the literature. This exploratory study is based on semi-structured interviews with major OC retailers in German-speaking countries and was complemented by market data research and discussions with further experts in the field of OC retailing. Based on the results of the study, the forward distribution system in OC retailing is characterized by the sources (supplier DCs, retailer DCs, stores) and destinations (home, store) which describe the options for store delivery, home delivery, and store pickup. Return processes are likewise characterized by the sources (store, home) and destinations (store, DC, return center). This framework forms the foundation for analyzing contextual criteria, identifying when the different conceptual designs are applied, determining industry-specific characteristics, 123Business Research (2016) 9:255-296 DOI 10.1007 and illustrating ways to further advance OC retailing. The present paper, therefore, contributes to the literature in three main areas: (1) it identifies and systematizes the forward and backward concepts in OC retailing, (2) it reveals application and development areas for achieving excellence in OC fulfillment and logistics, and (3) shows the need for developing sector-and context-specific OC distribution systems.

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Section: Qualitative Analyses Of Distribution Design Conceptsmentioning

confidence: 99%

“…Alptekinoglu and Tang (2005) analytically study whether online orders should be fulfilled from physical stores or from a DC. They conclude that expanding bricksand-mortar DCs for OC distribution pools inventory risks.…”

Section: Literature On Forward Distributionmentioning

confidence: 99%

Distribution systems in omni-channel retailing

Hübner

Holzapfel

Kühn

2016

Bus Res

196

153

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“…Specifically, they consider divergent two-echelon systems with a central warehouse at the top echelon and retail stores at the bottom echelon. Alptekinoglu and Tang (2005) show the dual-channel strategy to outperform both of the single channels.…”

mentioning

confidence: 99%

E-fulfillment and multi-channel distribution – A review

Agatz

Fleischmann

Nunen

2008

European Journal of Operational Research

463

309

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This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricksand-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering. E-Fulfillment and Multi-Channel Distribution -A Review AbstractThis review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricks-and-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.

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“…Research on dual channel environment problem is relatively rare. [5] considered ordering and allocation policies for multi-echelon systems with two sales channels. [6] reviewed an inventory equilibrium performance or the inventory control policy within dual sale channel.…”

Section: Literatures Reviewsmentioning

confidence: 99%

Multi-objective Dual-Sale Channel Supply Chain Network Design Based on NSGA-II

Hsieh

Liao

2014

Modern Advances in Applied Intelligence

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Abstract. In this study, we propose a two-echelon multi-objective dual-sale channel supply chain network (DCSCN) model. The goal is to determine (i) the set of installed DCs, (ii) the set of customers the DC should work with, how much inventory each DC should order and (iv) the distribution routes for physical retailers or online e-tailers (all starting and ending at the same DC). Our model overcomes the drawback by simultaneously tackling location and routing decisions. In addition to the typical costs associated with facility location and the inventory-related costs, we explicitly consider the pivotal routing costs between the DCs and their assigned customers. Therefore, a multiple objectives location-routing model involves two conflicting objectives is initially proposed so as to permit a comprehensive trade-off evaluation. To solve this multiple objectives programming problem, this study integrates genetic algorithms, clustering analysis, Non-dominated Sorting Genetic Algorithm II (NSGA-II). NSGA-II searches for the Pareto set. Several experiments are simulated to demonstrate the possibility and efficacy of the proposed approach.

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A model for analyzing multi-channel distribution systems

Cited by 119 publications

References 13 publications

Distribution systems in omni-channel retailing

Distribution systems in omni-channel retailing

E-fulfillment and multi-channel distribution – A review

Multi-objective Dual-Sale Channel Supply Chain Network Design Based on NSGA-II

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