An Analysis of E-commerce Applied to the Management of Hospitality Industry Based on Optimal Solutions

At present total usually charges the retailers the same per-unit cost for drop shipping as the regular replenishment orders. The drop-shipping option is only currently offered to large retail customers. The hospitality industry is contemplating offering drop shipping to all its retail customers at a premium over the per-unit cost of the regular replenishment orders. The problem the retailers facing is to develop an inventory policy which takes into account the drop-shipping option. In order to investigate the effect of inventory pattern on non-perishable inventory systems, we can consider using the quantity reorder-point inventory pattern in a continuous-review order. In this paper, hospitality industry will be researched in which condition that the retailers use an inventory pattern option when a shortage occurs during lead-time. And we can derive closed-form expressions for the optimal solutions under exponential and uniform demand distributions.