Abstract

In the retail industry, to increase sales and the number of users, it is common practice to regularly or irregularly carry out sales promotion measures such as discount sales and point return. The fluctuation in demand due to such sales promotion measures is amplified compared to when it is not implemented. This wave propagates along with the lead time (difference between the order receipt date and the designated delivery date), since the order is placed on the EC site and shipped on the designated delivery date, unlike in the real store sales. This wave of late-propagating fluctuations not only has a major impact on the scheduling of workers shipping at the warehouse, but also has a negative impact on the business. In other words, excessive staffing increases shipping costs, and staffing shortages cause delivery delays, resulting in lower customer satisfaction. Therefore, we propose a method to trade-off between customer satisfaction and shipping cost by formulating an appropriate shipping plan that anticipates fluctuations in demand due to sales promotion measures.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.