Joint optimization of inventory control and product placement on e-commerce websites using genetic algorithms

Chen, Yan‐Kwang; Chiu, Fei-Rung; Liao, Hung‐Chang; Yeh, Chien-Hua

doi:10.1007/s10660-016-9216-9

Cited by 5 publications

(5 citation statements)

References 39 publications

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“…For online retailing, the color, shape, size, and spatial arrangement of different product images are believed to influence the customer’s attention, which, in turn, affects their purchasing decisions [25]. According to this, Chen et al [29] considered the product stored in its own warehouse and proposed a visual-attention-dependent demand (VADD) inventory model, where the demand rate is a function of the display area and size assigned to the product image. Chen et al [30] extended Chen et al’s model [29] to a drop-shipping environment.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to this, Chen et al [29] considered the product stored in its own warehouse and proposed a visual-attention-dependent demand (VADD) inventory model, where the demand rate is a function of the display area and size assigned to the product image. Chen et al [30] extended Chen et al’s model [29] to a drop-shipping environment.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Optimization of this model will assist online pharmacies in determining the placement of items in the online catalogue, the price of the item, and the quantity of each item replenished. This research topic is similar to Chen et al [29], but in Chen et al [29], it is assumed that the products sold by the online retailer are non-deteriorating items and developed the model based on the multi-product EOQ framework. Considering that cosmeceuticals have a validity period, this sustainable inventory model is developed based on the single-period multi-product newsboy framework.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Considering that cosmeceuticals have a validity period, this sustainable inventory model is developed based on the single-period multi-product newsboy framework. In addition, this study considers the pricing of products, but Chen et al [29] assumed that the price is known and fixed. At last, the sustainable inventory model focuses on both economic and environmental aspects.…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Implementing Green Supply Chain Management for Online Pharmacies through a VADD Inventory Model

Chen

Chiu

Chang

2019

IJERPH

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Online pharmacies are an important part of the modern healthcare system. They interact with customers through well-designed web interfaces to deliver the healthcare customers need. In addition to well-designed web interfaces, online pharmacies rely on an effective supply chain system to provide medical supplies and services, and especially effective inventory management for supply systems. As green supply chain management (GSCM) becomes increasingly considered by countries, how to develop a sustainable inventory model that takes into account the revenue growth of an online pharmacy while preventing waste and reducing energy costs has become very important. In line with this trend, the study develops a sustainable inventory model that focuses on both economic aspect (profit) and environmental aspect (losses from excessive inventory) within a framework of a single period multi-product inventory model. Specifically, the sustainable inventory model applies the visual-attention-dependent demand (VADD) rate to characterize customer demand in an online trading environment, thereby seeking a profitable marketing strategy and reducing losses due to excessive inventory. Since the complexity of model optimization will drastically increase due to the inclusion of many products in the problem, a Genetic Algorithm (GA) based solution procedure is proposed to increase the feasibility of the proposed model in solving real problems. The sustainable inventory model and the solution procedure are illustrated, compared, and discussed with an online pharmacy example. Additionally, a sensitivity analysis is formulated to study the influence of model parameters on the model solution, the loss of unsold inventory that results in a waste of resources and energy, and the profit of online pharmacies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Implementing Green Supply Chain Management for Online Pharmacies through a VADD Inventory Model

Chen

Chiu

Chang

2019

IJERPH

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“…However, we cannot ascertain that such behaviour is the result of real loyalty towards these countries, grape varieties and brands, or if the algorithms managing the wine sales online favour (in one way or another) or facilitate the choice of these specific countries, grape varieties, and brands. For example, Chen et al (2016) have developed a model using genetic algorithms to optimise online sales under the constraint of an inventory of the SKUs available for sale. On a different perspective, Balakrishnan et al (2018) have worked on a co-clustering algorithm to determine efficient product recommendations for groups of buyers with similar purchasing patterns.…”

Section: Discussionmentioning

confidence: 99%

Do wine buyers behave differently in brick and mortar vs online stores?

Higuet

Remaud

2020

BFJ

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PurposeTo measure the extent to which wine buyers behave differently when purchasing wine online vs in two brick and mortar stores. The article aims to extend the use of the Double Jeopardy principle and empirical-based methodology to the wine category in a European retailing context.Design/methodology/approachCustomer loyalty data of two brick and mortar stores and the website orders of a Belgian retailer have been gathered for a one-year period. Data have been analysed based on three specific wine attributes: country of origin, grape variety and brand. Double Jeopardy measurements have been calculated for each of these attributes.FindingsThis study enlarges the scope of use of the Dirichlet principles. All three hypotheses derived from the Double Jeopardy patterns across all attributes are confirmed. From the perspective of these principles, we demonstrated that wine buyers do not behave differently in brick and mortar vs online stores.Originality/valueVery few studies have analysed and understood wine buyers' behaviour using actual purchasing data from retail stores, and none have been released comparing online and brick and mortar stores owned by the same retail brand. From that perspective, our study demystifies the way people really buy, and confirms what has been found in other product categories.

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