Centralized Decision Making in an Omnichannel Supply Chain with Stochastic Demand

Rui Song and Zhongming Wu ()
Additional contact information
Rui Song: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Zhongming Wu: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China

Sustainability, 2023, vol. 15, issue 17, 1-21

Abstract: With retailers increasingly adopting the omnichannel retailing model as a core strategy in their daily operations, this study investigates the impact of random demand on the omnichannel supply chain that employs a combination of the online channel, retail channel, and buy online and pick up in store (BOPS) channel, in light of the more stochastic market after the occurrence of COVID-19. To enhance the sustainable profitability of the omnichannel supply chain, this study considers price and lead time dependent demand with both known and unknown distributions, and establishes mathematical models to maximize profit under centralized situations. The study analyzes the variations in demand with lead time in the three channels and examines the effects of price and lead time on profit. Additionally, it investigates the interactions between price and lead time. Through numerical examples, the study illustrates the effects of the mean and variance of random demand on decision variables and examines the influence of potential demand and the sensitivity of lead time. Overall, this analysis provides valuable insights into the impact of demand randomness on the profitability of an omnichannel supply chain, highlighting the importance of considering price and lead time in the decision-making process.

Keywords: omnichannel supply chain; BOPS; stochastic demand; supply chain management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/17/13113/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/17/13113/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:17:p:13113-:d:1229825

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().