A system dynamics model for optimum time, profitability, and customer satisfaction in omni-channel retailing

Seyed Ghiasuddin Taheri, Mehrzad Navabakhsh, Hamid Tohidi and Davood Mohammaditabar

Journal of Retailing and Consumer Services, 2024, vol. 78, issue C

Abstract: Omnichannel Retailing (OCR) places a strong emphasis on how different channels work together to offer seamless purchasing experiences for customers. Nevertheless, retailers will incur significant costs in implementing it. This study investigates the variables influencing OCR by examining the executive perspectives required by retailers to realize, expand, and improve OCR. To achieve this, system dynamics is employed, and a model is created to determine the factors influencing three stock variables— profitability, delivery time, and customer satisfaction—as well as the degree to which these effects are present and the connections among them. Before designing the model, the influential variables were extracted from the literature by considering the experts’ opinions. Then, the optimal values of the variables were evaluated by creating two different scenarios and three policies. The findings showed that utilizing OCR contributes to both the highest possible profit and level of customer satisfaction. Moreover, to achieve the lowest level of delivery time, we proposed three policies: 1) the creation of a distribution center, 2) inventory management and safety stock, and 3) demand management. The results of the implementation of these policies are given at the end of the article.

Keywords: Omni-channel retailing; System dynamics; Customer satisfaction; Profitability; Delivery time (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969698924000808
Full text for ScienceDirect subscribers only

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:eee:joreco:v:78:y:2024:i:c:s0969698924000808

DOI: 10.1016/j.jretconser.2024.103784

Access Statistics for this article

Journal of Retailing and Consumer Services is currently edited by Harry Timmermans

More articles in Journal of Retailing and Consumer Services from Elsevier
Bibliographic data for series maintained by Catherine Liu ().