Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11012417 | European Journal of Operational Research | 2019 | 36 Pages |
Abstract
Store-based retailers have been concerned about the high fulfillment costs and low gross margins of their online sales. This paper incorporates such issues in a non-linear mixed-integer profit maximization model of the online order fulfillment process for multi-channel retailers. A solution approach based on an iterative outer-approximation technique is developed. Using empirical data from a large U.S. retailer, the profitability of different options used by multi-channel retailers to fill online orders is evaluated. Managerial insights are developed through a factorial research design that highlights the effect of relevant logistics processes and fulfillment methods on the profitability of online sales for retailers.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Rafay Ishfaq, Naeem Bajwa,