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Open Access
Article
Publication date: 21 September 2021

Camillo Loro and Riccardo Mangiaracina

Considering the growing momentum of online marketplaces worldwide, the purpose of this paper is to develop a model to identify the main activities impacted by the implementation…

3743

Abstract

Purpose

Considering the growing momentum of online marketplaces worldwide, the purpose of this paper is to develop a model to identify the main activities impacted by the implementation of an e-marketplace in the business-to-business relationship and assess the savings on costs for the main actors involved (i.e. manufacturer, distributor and retailer).

Design/methodology/approach

The methodology used in the study is a quantitative one. The analytical model used to evaluate B2b e-marketplace's impacts followed three main steps: (1) model settings and general assumptions, (2) cost structure and (3) model simulation.

Findings

The findings reveal that beyond stock-out costs and inventory levels also other operating costs (i.e. transportation, penalty and administrative costs) play a significant role in determining overall impacts of B2b e-marketplace, and as such should be considered by managers in their process of e-marketplace evaluation, selection and performance optimisation. The model shows that compared with the offline scenario the B2b e-marketplace is expected to bring value to the overall supply chain, which tends to increase as the share of e-sales penetration is increased, ranging from a cost reduction of 0.1% (€ 229.2k) in the base-case of 10% e-sales adoption, up to 0.9% (€ −2.2 M) in case of full e-marketplace adoption.

Originality/value

This study aims to shed light and foster the adoption of B2b e-marketplace by providing some practical tools to support (1) research in future studies, filling the existing gaps on the topic, and (2) managers in the process of adoption and execution of e-sales through online marketplaces.

Details

Industrial Management & Data Systems, vol. 122 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 21 August 2023

Yue Zhou, Xiaobei Shen and Yugang Yu

This study examines the relationship between demand forecasting error and retail inventory management in an uncertain supplier yield context. Replenishment is segmented into…

1476

Abstract

Purpose

This study examines the relationship between demand forecasting error and retail inventory management in an uncertain supplier yield context. Replenishment is segmented into off-season and peak-season, with the former characterized by longer lead times and higher supply uncertainty. In contrast, the latter incurs higher acquisition costs but ensures certain supply, with the retailer's purchase volume aligning with the acquired volume. Retailers can replenish in both phases, receiving goods before the sales season. This paper focuses on the impact of the retailer's demand forecasting bias on their sales period profits for both phases.

Design/methodology/approach

This study adopts a data-driven research approach by drawing inspiration from real data provided by a cooperating enterprise to address research problems. Mathematical modeling is employed to solve the problems, and the resulting optimal strategies are tested and validated in real-world scenarios. Furthermore, the applicability of the optimal strategies is enhanced by incorporating numerical simulations under other general distributions.

Findings

The study's findings reveal that a greater disparity between predicted and actual demand distributions can significantly reduce the profits that a retailer-supplier system can earn, with the optimal purchase volume also being affected. Moreover, the paper shows that the mean of the forecasting error has a more substantial impact on system revenue than the variance of the forecasting error. Specifically, the larger the absolute difference between the predicted and actual means, the lower the system revenue. As a result, managers should focus on improving the quality of demand forecasting, especially the accuracy of mean forecasting, when making replenishment decisions.

Practical implications

This study established a two-stage inventory optimization model that simultaneously considers random yield and demand forecast quality, and provides explicit expressions for optimal strategies under two specific demand distributions. Furthermore, the authors focused on how forecast error affects the optimal inventory strategy and obtained interesting properties of the optimal solution. In particular, the property that the optimal procurement quantity no longer changes with increasing forecast error under certain conditions is noteworthy, and has not been previously noted by scholars. Therefore, the study fills a gap in the literature.

Originality/value

This study established a two-stage inventory optimization model that simultaneously considers random yield and demand forecast quality, and provides explicit expressions for optimal strategies under two specific demand distributions. Furthermore, the authors focused on how forecast error affects the optimal inventory strategy and obtained interesting properties of the optimal solution. In particular, the property that the optimal procurement quantity no longer changes with increasing forecast error under certain conditions is noteworthy, and has not been previously noted by scholars. Therefore, the study fills a gap in the literature.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 2
Type: Research Article
ISSN: 2631-3871

Keywords

Content available
Article
Publication date: 14 September 2021

Kyle C. McDermott, Ryan D. Winz, Thom J. Hodgson, Michael G. Kay, Russell E. King and Brandon M. McConnell

The study aims to investigate the impact of additive manufacturing (AM) on the performance of a spare parts supply chain with a particular focus on underlying spare part demand…

1315

Abstract

Purpose

The study aims to investigate the impact of additive manufacturing (AM) on the performance of a spare parts supply chain with a particular focus on underlying spare part demand patterns.

Design/methodology/approach

This work evaluates various AM-enabled supply chain configurations through Monte Carlo simulation. Historical demand simulation and intermittent demand forecasting are used in conjunction with a mixed integer linear program to determine optimal network nodal inventory policies. By varying demand characteristics and AM capacity this work assesses how to best employ AM capability within the network.

Findings

This research assesses the preferred AM-enabled supply chain configuration for varying levels of intermittent demand patterns and AM production capacity. The research shows that variation in demand patterns alone directly affects the preferred network configuration. The relationship between the demand volume and relative AM production capacity affects the regions of superior network configuration performance.

Research limitations/implications

This research makes several simplifying assumptions regarding AM technical capabilities. AM production time is assumed to be deterministic and does not consider build failure probability, build chamber capacity, part size, part complexity and post-processing requirements.

Originality/value

This research is the first study to link realistic spare part demand characterization to AM supply chain design using quantitative modeling.

Details

Journal of Defense Analytics and Logistics, vol. 5 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Open Access
Article
Publication date: 13 July 2021

Emmelie Gustafsson, Patrik Jonsson and Jan Holmström

This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit…

4539

Abstract

Purpose

This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit uncertainty.

Design/methodology/approach

The paper analyzes the current performance of a retailer's e-commerce and return operations by estimating costs generated by product returns, including product handling costs, tied-up capital, inventory holding costs, transportation costs, and order-picking costs. The estimated costs were built on 2,229 return transactions from a Scandinavian fashion footwear retailer. A digital product fitting technology was tested with the retailer’s products and resulted in estimations on how such technology could affect product returns.

Findings

The cost of a return is approximately 17% of the prime cost. The major cost elements are product handling costs and transportation costs, which together amount to 72% of the total costs. If well calibrated, the fitting technology can cut fit-related return costs by up to 80%. The findings show how customers reacted to the fitting technology: it was unable to verify fit every time, but it serves as a useful and effective support tool for customers when placing orders.

Research limitations/implications

Virtual fit verification using digital product fitting is key to retailers to reduce fit-related returns. Digital product fitting using three-dimensional scanning is more appropriate for some products, but it is unsuitable for products that are difficult to measure and scan.

Originality/value

The paper contributes an empirical estimate of retail supply chain costs associated with fit uncertainty, as well as theoretical understanding of the role of pre-sales fit verification in avoiding product returns.

Details

International Journal of Physical Distribution & Logistics Management, vol. 51 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 30 April 2012

Dong-Kyu Kim and Minyoung Park

Sustainable transport has become a new paradigm offering efficient, equitable, and pro-environment transport services. Many intermodal freight systems, especially those for…

Abstract

Sustainable transport has become a new paradigm offering efficient, equitable, and pro-environment transport services. Many intermodal freight systems, especially those for port-to-rail networks, consist of multiple routes starting from and ending at the same port in order to exploit economies of scale. It is of interest to railway operators, therefore, to improve the efficiency of the system by finding the optimal fleet size (the number of cars assigned to a route) and frequency for each route. This paper proposes a model which determines the optimal frequency of each route under the total fleet size constraint for the one-to-many distribution. Trains carry items from one port to their destinations on their predetermined routes. This paper focuses on situations in which items from one port are transported to many destinations via railroads. The tradeoffs between transportation and inventory costs determine optimal frequency under the total fleet size and capacity constraints. The optimal frequency and fleet size of each route are calculated and then updated at the end of each step of the model. The model that we have developed in this paper is validated by port-to-rail freight data from actual shipments in Korea. The results of the analysis show that the proposed model can provide a more reliable and realistic representation of the real one-to-many distribution than the other alternatives which are commonly used. This study not only forms the theoretical basis of an effective and rational freight operation, but it also contributes to the assessment of the existing and planned logistics systems.

Details

Journal of International Logistics and Trade, vol. 10 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 21 February 2020

Florian Kellner

Due to the growing percentage share of urban dwellers, the physical distribution of products faces altering conditions. This research explores the effects that urbanization has on…

6282

Abstract

Purpose

Due to the growing percentage share of urban dwellers, the physical distribution of products faces altering conditions. This research explores the effects that urbanization has on the performance of a fast-moving consumer goods distribution network. A focus is set on changes in distribution cost, the cost-minimal network design, and greenhouse gas emissions.

Design/methodology/approach

The analyses are based on a quantitative distribution network model of an existing manufacturer of consumer goods.

Findings

The results indicate that the foreseen population shift will affect the network's economic and environmental performance. Effects are, among others, due to differences in the efficiency of supplying urban and nonurban regions. The combined effects of urbanization and the development of the population size will even more affect the network's performance.

Originality/value

Research dealing with distribution logistics and urbanization primarily focuses on city logistics. In this paper, the object of analysis is the entire distribution system.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 2
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 26 September 2023

Tobias Winkler, Manuel Ostermeier and Alexander Hübner

Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or…

1599

Abstract

Purpose

Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.

Design/methodology/approach

The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.

Findings

The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.

Practical implications

The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.

Originality/value

This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 11
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 30 April 2012

Lu Chen and Theo Notteboom

A number of literature contributions have underlined the importance of developing value-added logistics activities or VALS in order to help improve customers’ satisfaction…

Abstract

A number of literature contributions have underlined the importance of developing value-added logistics activities or VALS in order to help improve customers’ satisfaction. However, there is usually very little attention given regarding where to perform these VALS. This study aims to: (1) identify a comprehensive set of factors which may influence the location of VALS, (2) to analyze to what extent those factors influence location decisions, and (3) to distinguish the determinants behind the location choices for distribution centers and for the kind of VALS that will be developed in these distribution centers.

In this paper, we will present a conceptual framework on the locations of VALS in view of the identifying determinants for assigning VALS to logistical centers. We argue that the optimal location of VALS is determined by complex interactions between the determinants at the level of the choice of a distribution system, distribution center location factors, and different logistical characteristics regarding products.

Details

Journal of International Logistics and Trade, vol. 10 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 28 February 2023

Md. Kausar Alam, Oli Ahad Thakur and Fakir Tajul Islam

Inventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The…

12302

Abstract

Purpose

Inventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and medium enterprises (SMEs) in Bangladesh.

Design/methodology/approach

The study applied a qualitative case study design. Data were collected from ten SME owners in Bangladesh. The study employed a purposive sampling technique to collect data. This study used semi-structured interviews to generate data. The NVivo software was used to analyze the data.

Findings

The findings show that most SME business owners collect raw materials from the local market. Along with the local sources, they collect raw materials from international markets. Some SME entrepreneurs collect raw materials throughout the country as they dealt with recycled products. Frequently, they used digital technologies and online media to manage raw materials. SME owners could not buy many raw materials due to financial crisis, wastage, and damage, leading to a ratio of 10–15% losses.

Research limitations/implications

This research contributes greatly to the government, SME Foundation, and trade associations concerning the SME IM system. The study recommends the government should reduce the tax rate on importing SME raw materials and inventories and exporting SME products.

Originality/value

This is the first study that focuses on the IM systems of SMEs in Bangladesh.

Details

Rajagiri Management Journal, vol. 18 no. 1
Type: Research Article
ISSN: 0972-9968

Keywords

Open Access
Article
Publication date: 20 October 2021

Tomi Solakivi, Ain Kiisler and Olli-Pekka Hilmola

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The…

1456

Abstract

Purpose

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.

Design/methodology/approach

The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.

Findings

Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.

Research limitations/implications

The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.

Social implications

Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.

Originality/value

This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

Details

Journal of Global Operations and Strategic Sourcing, vol. 15 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

1 – 10 of over 2000