Supply Chain and Revenue Management for Online Retailing

This dissertation focuses on optimizing inventory and pricing decisions in the online retail industry. Motivated by the importance of great customer service quality in the online retail marketplace, we investigate service-level-constrained inventory control problems in both static and dynamic settings. The first essay studies multi-period production planning problems (with or without pricing options) under stochastic demand. A joint service-level constraint is enforced to restrict the joint probability of having backorders in any period. We use the Sample Average Approximation (SAA) approach to reformulate both chance-constrained models as mixed-integer linear programs (MILPs). Via computations of diverse instances, we demonstrate the effectiveness of the SAA approach, analyze the solution feasibility and objective bounds, and conduct sensitivity analysis. The approaches can be generalized to a wide variety of production planning problems. The second essay investigates the dynamic versions of the service-level-constrained inventory control problems, in which retailers have the flexibility to adjust their inventory policies in each period. We formulate two periodic-review stochastic inventory models (backlogging model and remanufacturing model) via Dynamic Programs (DP), and establish the optimality of generalized base-stock policies. We also propose 2-approximation algorithms for both models, which is computationally more efficient than the brute-force DP. The core concept developed in our algorithms is called the delayed marginal cost, which is proven effective in dealing with service-level-constrained inventory systems. The third essay is motivated by the exploding use of sales rank information in today's internet-based e-commerce marketplace. The sales rank affects consumers' shopping preference and therefore, is critical for retailers to utilize when making pricing decisions. We study periodic-review dynamic pricing problems in presence of sales rank, in which customers' demand is a function of both prices and sales rank. We propose rank-based pricing models and characterize the structure and monotonicity of optimal pricing policies. Our numerical experiments illustrate the potential of revenue increases when strategic cyclic policy is used.PHDIndustrial & Operations EngineeringUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttps://deepblue.lib.umich.edu/bitstream/2027.42/144159/1/ycjiang_1.pd

The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems

Recent years have witnessed companies abandon traditional open-loop supply chain structures in favour of closed-loop variants, in a bid to mitigate environmental impacts and exploit economic opportunities. Central to the closed-loop paradigm is remanufacturing: the restoration of used products to useful life. While this operational model has huge potential to extend product life-cycles, the collection and recovery processes diminish the effectiveness of existing control mechanisms for open-loop systems. We systematically review the literature in the field of closed-loop supply chain dynamics, which explores the time-varying interactions of material and information flows in the different elements of remanufacturing supply chains. We supplement this with further reviews of what we call the three ‘pillars’ of such systems, i.e. forecasting, collection, and inventory and production control. This provides us with an interdisciplinary lens to investigate how a ‘boomerang’ effect (i.e. sale, consumption, and return processes) impacts on the behaviour of the closed-loop system and to understand how it can be controlled. To facilitate this, we contrast closed-loop supply chain dynamics research to the well-developed research in each pillar; explore how different disciplines have accommodated the supply, process, demand, and control uncertainties; and provide insights for future research on the dynamics of remanufacturing systems

Revenue Management and Demand Fulfillment: Matching Applications, Models, and Software

Recent years have seen great successes of revenue management, notably in the airline, hotel, and car rental business. Currently, an increasing number of industries, including manufacturers and retailers, are exploring ways to adopt similar concepts. Software companies are taking an active role in promoting the broadening range of applications. Also technological advances, including smart shelves and radio frequency identification (RFID), are removing many of the barriers to extended revenue management. The rapid developments in Supply Chain Planning and Revenue Management software solutions, scientific models, and industry applications have created a complex picture, which appears not yet to be well understood. It is not evident which scientific models fit which industry applications and which aspects are still missing. The relation between available software solutions and applications as well as scientific models appears equally unclear. The goal of this paper is to help overcome this confusion. To this end, we structure and review three dimensions, namely applications, models, and software. Subsequently, we relate these dimensions to each other and highlight commonalities and discrepancies. This comparison also provides a basis for identifying future research needs.Manufacturing;Revenue Management;Software;Advanced Planning Systems;Demand Fulfillment

The Future of Retail Operations

Retailing consists of all the activities associated with the selling of goods to the final consumer. In this article, we review the research on retail operations published in Manufacturing & Service Operations Research (M&SOM) since 1999. We then discuss the current retail landscape and the new research directions it offers, in which M&SOM can play a prominent role

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

The extent to which businesses in New Zealand are willing to pay carbon tax and other related mechanisms of carbon pricing.

Global climate change is the most critical environmental and economic problem that must be addressed. Failure to address the issue of climate change will result in catastrophic and irreversible damage to natural resources. Issues around climate change have been created by problems caused by industrial pollution and reckless deforestation for commercial gains. Therefore, corporations and businesses should be held accountable for damage they cause. The release of greenhouse gasses should be eliminated or reduced and one way to achieve this is by introducing carbon tax. The aim of this research is to determine the awareness and acceptance of carbon tax and carbon related pricing for businesses in New Zealand. This research included different businesses from different sectors to obtain generalisable results. Quantitative data was gathered from 15 businesses using a closed questionnaire. The data gathered by the survey were than analysed using a percentage approach. The research found that the businesses were aware of carbon tax and its importance. The majority of the businesses were prepared to incur extra carbon tax cost however, preferring the upstream method of taxation as they will be taxed based on quantum of emission. The literature and survey agree that revenue collected from carbon tax and related pricing should be used to fund research to reduce carbon emission and present carbon levels to the desired levels to protect the environment and ensure human existence

Daily operations management at a takeaway organisation

The aim of this research project is to distinguish various aspects of the newly established start-up of a takeaway shop and its various activities, in which we will look at the daily operation, consistency in taste, supply chain and delivery related problems. The personality behind this venture had worked with various franchises of the pizza industry. The vision behind the establishment of the takeaway was to introduce the new taste of the pizza on the streets of Hamilton. This franchise has 3 more outlets in Auckland. So, at the end of the study, the outcomes will be helpful for all the outlets. We will look for things that the takeaway does well and do not do well. A SWOT analysis was conducted, and a qualitative approach used to find solutions for problems. Personal observation was also under consideration for the purpose of solutions. The whole research gives a brief idea about problems and suitable solutions for the longer term. Giving some level of responsibility to every employee will make a huge impact on the operations side of the business. Business start-up research is not enough, and still it is under progress for some parts like pizza delivery and consistent supply chain. Its wide spread is a subject for further research

Understanding customer satisfaction based on the way they evaluate service delivery

With the development of society, the service industry has become the pillar of the world economy. People's demand for service products is getting higher and higher because people are becoming increasing lazy. Through this research, an immigration organisation showed most customers are not satisfied with the price of service, so the aim of the research is to understand customer satisfaction through their interaction with the service provider. This paper used qualitative method and unstructured interviews. Six interviewees obtained through email were used. The results showed that most customers are satisfied with member engagement in service delivery and credibility of the business, and that the organisation should improve staff response to customers’ questions. There are some recommendations. Firstly, that the company needs to have a strategy for training staff to improve customer satisfaction. Secondly, the organisation needs to think about how they can improve credibility because it is essential to customer satisfaction. Finally, the company needs to improve communication quality to reduce customer waiting time by increasing staff numbers for customer satisfaction

Health and safety in hospitality

Health and safety involves rules and regulations at the workplace. It is important at workplaces to protect employers and employees from accidents and injuries. The aim of this research project is to identify health and safety issues at motels, identify possible causes of those problems, provide some potential solutions to solve those problems, and suggest ways to develop a safe work environment. Observation was used as a primary research method. Results show that staff are not following the health and safety rules properly and managers do not inspect or observe properly. Common hazards in motels are slips, trips and falls, forceful exertions, and musculoskeletal disorders. Lack of health and safety education and training prior to commencement of work, carelessness, ignorance, lack of inspections, are some of the reasons for workplace accidents. Both managers and workers are responsible for keeping the workplace safe and healthy. Recommendations include frequent and timely inspections at the workplace, verbal warnings to workers, a health and safety meeting prior to starting work, and meeting to remind them every day, as well as motivating and rewarding employees to encourage them to develop a safe working culture