EURO-Online login
- New to EURO? Create an account
- I forgot my username and/or my password.
- Help with cookies
(important for IE8 users)
1974. Inventory control of end-of-sales-life products with integrated online and offline sales channels
Invited abstract in session MC-50: Retail Inventory Management II, stream Retail Operations.
Monday, 12:30-14:00Room: M2 (building: 101)
Authors (first author is the speaker)
| 1. | Ben Lowery
|
| Department of Mathematics and Statistics, Lancaster University | |
| 2. | Anna-Lena Sachs
|
| Management Science, Lancaster University | |
| 3. | Idris Eckley
|
| Mathematics and Statistics, Lancaster University | |
| 4. | Louise Lloyd
|
| Tesco Mobile |
Abstract
In a business with integrated online and offline storefronts, the management and control of stock for end-of-sales-life products facing uncertainty and decline in demand poses important operational challenges. The retailer sells items through its stores and its warehouse. The stores satisfy demand from its available stock, while the warehouse fulfils online orders as well as a proportion of excess customer demand if the stores did not have enough stock on hand; with remaining unsatisfied demand at the store becoming lost-sales.
We develop a two-echelon divergent, periodic-review inventory model, with partial lost-sales at the store level, to determine order quantities during the end-of-sales-life period. We solve small instances to optimality using dynamic programming techniques. Due to the curse of dimensionality, we develop novel heuristics to make ordering decisions that balance accuracy and interpretability for larger instances.
Keywords
- Inventory
- Supply Chain Management
Status: accepted
Back to the list of papers