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Case study: Optimizing order fulfillment in a global retail supply chain

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Listed:
  • Amer, Yousef
  • Luong, Lee
  • Lee, Sang-Heon

Abstract

This paper demonstrates a model which uses an adaption of Design for six sigma and fuzzy logic to optimize, monitor and control the order fulfillment process in the supply chain of a global retail firm. Even though the firm has advanced SCM practices in place retail stores suffer from stock outs of popular items and excessive stock of lower selling items. The order fulfillment optimization model presented enhances supply chain integration and collaboration across supply chain partners through effective monitoring and controlling of supply chain variables. It considers the critical to customer requirements at the supply chain design onset making it a useful model for dealing with customer differentiation and channel separation. With 47% of firms only focusing on developing smooth internal processes this model offers opportunities for external supply chain improvements and partial integration across the chain to improve business outcomes.

Suggested Citation

  • Amer, Yousef & Luong, Lee & Lee, Sang-Heon, 2010. "Case study: Optimizing order fulfillment in a global retail supply chain," International Journal of Production Economics, Elsevier, vol. 127(2), pages 278-291, October.
    • Handle: RePEc:eee:proeco:v:127:y:2010:i:2:p:278-291
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    References listed on IDEAS

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    1. Xu, Henry & Koh, Lenny & Parker, David, 2009. "Business processes inter-operation for supply network co-ordination," International Journal of Production Economics, Elsevier, vol. 122(1), pages 188-199, November.
    2. Yousef Amer & Muhammad Azeem Ashraf & Lee Luong & Sang-Heon Lee & William Y.C. Wang, 2007. "A systems approach to order fulfilment using design for six sigma methodology," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 1(3), pages 302-316.
    3. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
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