IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v58y2020i18p5579-5600.html
   My bibliography  Save this article

Single-period assortment and stock-level decisions for dual sales channels with capacity limits and uncertain demand

Author

Listed:
  • Joseph Geunes
  • Yiqiang Su

Abstract

This paper addresses a dual channel, clicks-and-mortar retailer's problem of determining which among a set of products with seasonal demand will occupy limited retail shelf space, which products will be offered via an online channel, and which items will be available through both channels. Using a consumer choice model in which the set of products offered influences each product's demand in each channel, we consider stocking and price decisions under uncertain demand in a single-period setting with a constraint on the probability of stocking out. The resulting model is a large-scale, chance-constrained, two-stage stochastic programme. We propose a sample average approximation (SAA) method that permits quickly arriving at near-optimal solutions for this complex problem class. We also exercise the proposed model to gain insights on the problem's key tradeoffs and properties of optimal solutions.

Suggested Citation

  • Joseph Geunes & Yiqiang Su, 2020. "Single-period assortment and stock-level decisions for dual sales channels with capacity limits and uncertain demand," International Journal of Production Research, Taylor & Francis Journals, vol. 58(18), pages 5579-5600, September.
    • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:18:p:5579-5600
    DOI: 10.1080/00207543.2019.1693648
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2019.1693648
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207543.2019.1693648?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Sheshadri Chatterjee & Ranjan Chaudhuri & Sachin Kamble & Shivam Gupta & Uthayasankar Sivarajah, 2023. "Adoption of Artificial Intelligence and Cutting-Edge Technologies for Production System Sustainability: A Moderator-Mediation Analysis," Information Systems Frontiers, Springer, vol. 25(5), pages 1779-1794, October.
    2. Hense, Jonas & Hübner, Alexander, 2022. "Assortment optimization in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 301(1), pages 124-140.
    3. Guan, Zhimin & Mou, Yuxia & Zhang, Jun, 2024. "Incorporating risk aversion and time preference into omnichannel retail operations considering assortment and inventory optimization," European Journal of Operational Research, Elsevier, vol. 314(2), pages 579-596.
    4. Hübner, Alexander & Hense, Jonas & Dethlefs, Christian, 2022. "The revival of retail stores via omnichannel operations: A literature review and research framework," European Journal of Operational Research, Elsevier, vol. 302(3), pages 799-818.
    5. Çömez-Dolgan, Nagihan & Dağ, Hilal & Fescioglu-Unver, Nilgun & Şen, Alper, 2023. "Multi-plant manufacturing assortment planning in the presence of transshipments," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1033-1050.
    6. Schäfer, Fabian & Hense, Jonas & Hübner, Alexander, 2023. "An analytical assessment of demand effects in omni-channel assortment planning," Omega, Elsevier, vol. 115(C).

    More about this item

    Statistics

    Access and download statistics

    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:taf:tprsxx:v:58:y:2020:i:18:p:5579-5600. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    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.