EURO 2024 Copenhagen
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4245. Lateral Trans-Shipments within an Apparel Retail Chain

Contributed abstract in session WB-50: Retail Distribution II, stream Retail Operations.

Wednesday, 10:30-12:00
Room: M2 (building: 101)

Authors (first author is the speaker)

1. Waldemar Kaczmarczyk
Faculty of Management, AGH University

Abstract

In the middle of the season, apparel retail chains can increase sales by trans-shipment of unsold commodities between different stores. Planning of such an operation may be described with the help of a many-to-many transportation model. However, the product and its size variety are tremendous, while the amount of any product in a specific size that any store may send to another one is small. In the considered company, all shipments should go directly from one store to another (drop-ship) rather than through the central warehouse. A forecast of the demand is unavailable, first, because the product collection changes very often, and second, because the sales of the same product differ significantly among different stores. Therefore, decisions must be based on rules proposed by managers and verified over several seasons by experimentation. Moreover, the trans-shipment plan must keep employees' workload acceptable. This paper presents the general concept of the trans-shipment approach, mixed integer programming models of the considered problem, and the proposed hierarchical planning approach.

Keywords

Status: accepted

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