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Across many industries, e-commerce generates substantial modifications in supply chain structures. The aim of this article is to assess different forms of existing organizations when a store-based sales network coexists with a web site order network. Three main organizational models can be detected: “store-picking”, “dedicated warehouse-picking” and “drop-shipping”. We use a “newsboy” order policy...
This text summarizes the PhD thesis defended by the author in October 2007 under the supervision of Gerrit K. Janssens at Hasselt University, Belgium. The thesis is written in English and is available from the author upon request. The overall objective of this thesis is twofold. First, the demand process is described under the condition of incomplete information. Then a framework is developed for...
In this paper, a supply chain management problem from a real case study is modeled and solved. A company in Pakistan wanted to outsource part of its warehousing activity to a third party logistics (3PL) provider. Consequently, the company had to decide on where to rent space in the 3PL warehouses. Knowing that such a strategic decision is affected by tactical and operational decisions, the problem...
We consider a newsvendor that can increase the mean demand with advertising and reduce the variability in the demand by forecasting or market research. We analyze the problem under uniform and normal demand distributions. We also study the distribution-free case by using a lower bound on the newsvendor profit function. We show that when the budget is unlimited, the forecasting expenditure increases...
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