IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i5p2875-d512149.html
   My bibliography  Save this article

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

Author

Listed:
  • Damla İzmirli

    (Department of Industrial Engineering, Faculty of Engineering, Yasar University, Izmir 35100, Turkey)

  • Banu Y. Ekren

    (Department of Industrial Engineering, Faculty of Engineering, Yasar University, Izmir 35100, Turkey)

  • Vikas Kumar

    (Bristol Business School, University of the West of England, Bristol BS16 1QY, UK
    Faculty of Accounting, Ton Duc Thang University, District 7, Ho Chi Minh City 729000, Vietnam)

  • Siwarit Pongsakornrungsilp

    (Department of Business Administration, School of Management, Walailak University, Nakhon Si Thammarat 80160, Thailand)

Abstract

In this paper, we study inventory share policies in an omni-channel supply network, to contribute to the circular economy (CE) concept. Lateral inventory share implementation provides flexibility and profitability in the supply chain by allowing inventory share between the same echelon locations in a network. Total holding costs and transportation costs can be reduced by lateral inventory share applications, which also contribute to decreased material usage for production over time, as well as reduced CO 2 emission released by transportation. Technological and Internet of Things (IoT) developments make it possible for companies to share their real-time information with each other for uninterrupted marketing experiences. With such a connected network, companies aim to increase their profitability and responsiveness to their customers. We explore a well-designed inventory share policy towards the CE concept under an ( s, S ) inventory control policy. We simulate several pre-defined share designs by Arena 16.0 commercial software and compare their performances in terms of cost, responsiveness, transportation frequency, inventory held, etc. The results show that, by the implementation of a well-designed lateral inventory share policy, an omni-channel network can benefit from decreased holding cost and transportation cost, contributing to the CE concept.

Suggested Citation

  • Damla İzmirli & Banu Y. Ekren & Vikas Kumar & Siwarit Pongsakornrungsilp, 2021. "Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies," Sustainability, MDPI, vol. 13(5), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2875-:d:512149
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/5/2875/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/5/2875/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fenna Blomsma & Geraldine Brennan, 2017. "The Emergence of Circular Economy: A New Framing Around Prolonging Resource Productivity," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 603-614, June.
    2. Lee, Young Hae & Jung, Jung Woo & Jeon, Young Sang, 2007. "An effective lateral transshipment policy to improve service level in the supply chain," International Journal of Production Economics, Elsevier, vol. 106(1), pages 115-126, March.
    3. Anonymous, 2014. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 9(2), pages 109-110, August.
    4. Genovese, Andrea & Acquaye, Adolf A. & Figueroa, Alejandro & Koh, S.C. Lenny, 2017. "Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications," Omega, Elsevier, vol. 66(PB), pages 344-357.
    5. Dilupa Nakandala & Henry Lau & Paul K.C. Shum, 2017. "A lateral transshipment model for perishable inventory management," International Journal of Production Research, Taylor & Francis Journals, vol. 55(18), pages 5341-5354, September.
    6. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    7. Anonymous, 2014. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 9(1), pages 1-2, May.
    8. Beck, Norbert & Rygl, David, 2015. "Categorization of multiple channel retailing in Multi-, Cross-, and Omni†Channel Retailing for retailers and retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 170-178.
    9. Trevor Zink & Roland Geyer, 2017. "Circular Economy Rebound," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 593-602, June.
    10. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    11. Soysal, M. & Bloemhof-Ruwaard, J.M. & van der Vorst, J.G.A.J., 2014. "Modelling food logistics networks with emission considerations: The case of an international beef supply chain," International Journal of Production Economics, Elsevier, vol. 152(C), pages 57-70.
    12. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    13. Damla İzmirli & Banu Yetkin Ekren & Vikas Kumar, 2020. "Inventory Share Policy Designs for a Sustainable Omni-Chanel E-Commerce Network," Sustainability, MDPI, vol. 12(23), pages 1-16, December.
    14. Emilio Abad-Segura & Ana Batlles de la Fuente & Mariana-Daniela González-Zamar & Luis Jesús Belmonte-Ureña, 2020. "Effects of Circular Economy Policies on the Environment and Sustainable Growth: Worldwide Research," Sustainability, MDPI, vol. 12(14), pages 1-27, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gianmarco Bressanelli & Federico Adrodegari & Daniela C. A. Pigosso & Vinit Parida, 2022. "Circular Economy in the Digital Age," Sustainability, MDPI, vol. 14(9), pages 1-6, May.
    2. Gianmarco Bressanelli & Federico Adrodegari & Daniela C. A. Pigosso & Vinit Parida, 2022. "Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda," Sustainability, MDPI, vol. 14(9), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armaghan Chizaryfard & Paolo Trucco & Cali Nuur, 2021. "The transformation to a circular economy: framing an evolutionary view," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 475-504, April.
    2. Jochen Wulf, 2020. "Development of an AHP hierarchy for managing omnichannel capabilities: a design science research approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 39-68, April.
    3. Kim, Sehoon & Connerton, Timothy Paul & Park, Cheongyeul, 2022. "Transforming the automotive retail: Drivers for customers' omnichannel BOPS (Buy Online & Pick up in Store) behavior," Journal of Business Research, Elsevier, vol. 139(C), pages 411-425.
    4. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.
    5. Mirzabeiki, Vahid & Saghiri, Soroosh Sam, 2020. "From ambition to action: How to achieve integration in omni-channel?," Journal of Business Research, Elsevier, vol. 110(C), pages 1-11.
    6. von Briel, Frederik, 2018. "The future of omnichannel retail: A four-stage Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 217-229.
    7. Marco Melacini & Elena Tappia, 2018. "A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions," Sustainability, MDPI, vol. 10(2), pages 1-15, January.
    8. Yini Chen & Ting Chi, 2021. "How Does Channel Integration Affect Consumers’ Selection of Omni-Channel Shopping Methods? An Empirical Study of U.S. Consumers," Sustainability, MDPI, vol. 13(16), pages 1-29, August.
    9. Saghiri, Soroosh & Wilding, Richard & Mena, Carlos & Bourlakis, Michael, 2017. "Toward a three-dimensional framework for omni-channel," Journal of Business Research, Elsevier, vol. 77(C), pages 53-67.
    10. Julián Chaparro-Peláez & Emiliano Acquila-Natale & Ángel Hernández-García & Santiago Iglesias-Pradas, 2020. "The Digital Transformation of the Retail Electricity Market in Spain," Energies, MDPI, vol. 13(8), pages 1-18, April.
    11. Sina Leipold & Anna Petit‐Boix & Anran Luo & Hanna Helander & Machteld Simoens & Weslynne S. Ashton & Callie W. Babbitt & Alba Bala & Catharina R. Bening & Morten Birkved & Fenna Blomsma & Casper Boks, 2023. "Lessons, narratives, and research directions for a sustainable circular economy," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 6-18, February.
    12. Xu, Xun & Jackson, Jonathan E., 2019. "Investigating the influential factors of return channel loyalty in omni-channel retailing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 118-132.
    13. Huré, Elodie & Picot-Coupey, Karine & Ackermann, Claire-Lise, 2017. "Understanding omni-channel shopping value: A mixed-method study," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 314-330.
    14. Chang, Ya Ping & Li, Jingwen, 2022. "Seamless experience in the context of omnichannel shopping： scale development and empirical validation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    15. Hallikainen, Heli & Alamäki, Ari & Laukkanen, Tommi, 2019. "Individual preferences of digital touchpoints: A latent class analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 386-393.
    16. Gaetano Aiello, 2017. "Products moving along channels, consumers cross channels," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(1), pages 7-11.
    17. Alexander, Bethan & Blazquez Cano, Marta, 2020. "Store of the future: Towards a (re)invention and (re)imagination of physical store space in an omnichannel context," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    18. Li, Gang & Zhang, Tao & Tayi, Giri Kumar, 2020. "Inroad into omni-channel retailing: Physical showroom deployment of an online retailer," European Journal of Operational Research, Elsevier, vol. 283(2), pages 676-691.
    19. Lopes de Sousa Jabbour, Ana Beatriz & Chiappetta Jabbour, Charbel Jose & Choi, Tsan-Ming & Latan, Hengky, 2022. "‘Better together’: Evidence on the joint adoption of circular economy and industry 4.0 technologies," International Journal of Production Economics, Elsevier, vol. 252(C).
    20. Tueanrat, Yanika & Papagiannidis, Savvas & Alamanos, Eleftherios, 2021. "A conceptual framework of the antecedents of customer journey satisfaction in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2875-:d:512149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.