Abstract
Customer service, based on economical logistics operations across the supply chain, is key to the realization of sustainable levels of profitability in Internet retailing. Concentrating on inventory and product-release operations, an empirical simulation model suggests that inventory centralization and market demand growth positively affect the level of cost-effective service received by online shoppers. The results also show that under increasing demand levels, Internet retailers can provide optimal service to consumers by fulfilling orders through inventories located at their own facilities and avoid relying on inventories held elsewhere in the supply chain.
Original language | English (US) |
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Pages (from-to) | 205-236 |
Number of pages | 32 |
Journal | Journal of Business Logistics |
Volume | 24 |
Issue number | 2 |
DOIs | |
State | Published - Sep 1 2003 |
Keywords
- Centralization
- Fulfillment
- Internet Retailing
- Postponement
- Supply Chain Management
- Vertical Integration
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Management Science and Operations Research