Internet book retailing and supply chain management: an analytical study of inventory location speculation and postponement
Internet retailing models support supply chains where consumer order locations are decoupled from inventory locations. In this setting, retailers dynamically consider inventory location speculation and postponement to fulfill their orders. Particularly, retailers can manage inventory to fulfill orders through two opposing strategies: in-stock inventory and drop-shipping. This paper extends the supply chain management literature by modeling Internet retailers' decisions to balance their offerings between these two strategies. The results show how retailers depend more on both of these strategies as their market share and product popularity increase. Thus, both inventory management strategies may be considered simultaneously to better manage Internet retailers' inventory.
Year of publication: |
2005
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Authors: | Bailey, Joseph P. ; Rabinovich, Elliot |
Published in: |
Transportation Research Part E: Logistics and Transportation Review. - Elsevier, ISSN 1366-5545. - Vol. 41.2005, 3, p. 159-177
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Publisher: |
Elsevier |
Subject: | Inventory management Electronic commerce Postponement |
Saved in:
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