Optimization of a Dual-Channel Retailing System with Customer Returns

A plethora of retailers have begun to embrace a dual-channel retailing strategy wherein items are provided to consumers through both an online store and a physical store. As a result of standards and competitive measures, many retailers provide buyers who are unhappy with their purchases with the ability to achieve a full refund. In a dualchannel retailing system, full reimbursements can be done through what is called a crosschannel return, when a buyer purchases a product from an online store and returns it to a physical store. They can also be done through what is called a same-channel return, when a buyer purchases a product from a physical store and returns it back to the physical store, or purchases a product from an online store and returns it back to the online store. No existing research has examined all common types of customer returns in the context of a dual-channel retailing system. Be notified that the practice of cross-returning an item purchased from the physical store back to the online store is not common. Thus, it is not considered in this dissertation. We first study the optimal pricing policies for a centralized and decentralized dual-channel retailer (DCR) with same- and cross-channel returns. We consider two factors: the dual-channel retailer’s performance under centralization with unified and differential pricing schemes, and the dual-channel retailer’s performance under decentralization with the Stackelberg and Nash games. How dual-channel pricing behaviour is impacted by customer preference and rates of customer returns is discussed. In this study, a channel’s sales requests is a linear function of a channel’s own pricing strategy and a cross-channel’s pricing strategy. The second problem is an extension of the first problem. The optimal pricing policies and online channel’s responsiveness level for a centralized and decentralized dual-channel retailer with same- and cross-channel returns are studied. Indeed, the online store is normally the distribution centre of the enterprise and is not limited to the customers in its neighbourhood. Also, the online store experiences a much higher return rate compared to the physical store. Thus, it has the capability and the need to optimize its responsiveness to customer returns along with its pricing strategy. A channel’s sales requests, in the second problem, is a linear function of a channel’s own price, a crosschannel’s price, and the online store’s responsiveness level. The third problem studies the dilemma of whether or not to allow unsatisfactory online purchases to be cross-returned to the physical store. If not properly considered, those returns may create havoc to the system and a retailer might overestimate or underestimate a channel’s order quantity. Therefore, we study and compare between four vi different strategies, and propose models to determine optimal order quantities for each strategy when a dual-channel retailer offers both same and cross-channel returns. Several decision making insights on choosing between the different cross-channel return strategies and some properties of the optimal solutions are presented. From the retailer’s perspective of outsourcing the e-channel’s management to a third party logistics and service provider, we finally study three different inventory strategies, namely transaction-based fee, flat-based fee, and gain sharing. For each strategy, we find both channels’ optimal inventory policies and expected profits. The performances of the different strategies are compared and the managerial insights are given using analytical and numerical analysis. Methodologies, insights, comparative analysis, and computational results are delivered in this dissertation for the above aforementioned problems

Parcel Transportation Services: Performance Evaluation and Improvement Using Markov Models

Ph.DDOCTOR OF PHILOSOPH

The Management of Strategic Alliances - Performance Impact Factors and Alliance Management Capabilities in the Context of Logistics Alliances

The proliferation of logistics alliances has continued to grow, due to ongoing deregulation, globalization, increasingly demanding customers, and the constant pressure for efficiency improvements in logistics operations. Logistics alliances are voluntary and long-term agreements in which two or more independent supply chain entities render logistics activities together to achieve strategic goals for mutual competitive advantages. Partnering firms strive for revenue and/or costs gains, service improvements and better market positions through resource, information, and risk sharing among them. Every second Logistics Service Provider (LSP) already engages in a logistics partnership (either vertical or horizontal). The majority of German LSP (about 60%) cooperates with at least one competitor. Despite this proliferation of logistics alliances, about 70 per cent of logistics alliances have difficulties in meeting partners’ expectations and may even be considered failures. While scholars have spent considerable efforts over the last decades studying logistics alliances, major gaps remain in our understanding and explanation of logistics alliances and their evolution (both success and failure). Given the wide acknowledgement and increasing importance of logistics alliances on the one hand, but their well-established diagnosis of high failure rate on the other hand, this thesis identified four central research questions: (1) What are performance impact factors of logistics alliances? (2) Why are some firms more successful in their logistics alliances than others? And how may specific logistics alliance management capabilities explain these differences? (3) What are reasons for logistics alliance failure? And how can firms prevent failure and improve logistics alliance performance? (4) What are logistics-specific alliance management capabilities? And why are some firms not able to deploy them successfully? To answer the identified research questions, the aim of this thesis is to identify and explain logistics-specific (1) alliance performance impact factors, (2) alliance management capabilities, (3) reasons for alliance failure, and (4) barriers for the deployment of logistics alliance management capabilities. Thereby, the thesis wants to elaborate the current understanding and explanation of logistics alliances, and to help firms to prevent logistics alliance failure and to improve logistics alliance performance. Accordingly, the thesis builds on four independent research studies. Each of these four independent research studies provides a comprehensive account of logistics alliances. Thereby, this thesis adds to our understanding and explanation of logistics alliances and their performance. More specifically, it contributes to the logistics alliances scholarship in three ways: (1) Explanation of performance impact factors of logistics alliances (2) Introduction of new theoretical constructs (3) Providing empirical insights. Thereby, the thesis contributes both to the existing logistics alliance scholarship and to practice by helping firms to prevent failure and improve logistics alliance performances

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications