Dynamic order allocation in E-commerce supply network
The rising popularity of E-commerce caused huge demand surges for the retailers to effectively fulfil orders. With the growing competition and supply disruptions in E-commerce, retailers are concerned about high fulfilment costs and low gross margins, prompting the need for flexibilities in the supp...
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2023
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sg-ntu-dr.10356-1677782023-06-10T16:50:04Z Dynamic order allocation in E-commerce supply network Loo, Jia Lin Chen Songlin School of Mechanical and Aerospace Engineering Advanced Remanufacturing and Technology Centre (ARTC) Songlin@ntu.edu.sg Engineering::Industrial engineering::Supply chain The rising popularity of E-commerce caused huge demand surges for the retailers to effectively fulfil orders. With the growing competition and supply disruptions in E-commerce, retailers are concerned about high fulfilment costs and low gross margins, prompting the need for flexibilities in the supply chain networks to mitigate against disruptions. In this paper, we aim to design and analyse several supply chain order fulfilment networks such as static, static with lateral transhipments, dynamic and dynamic with order spitting order fulfilment models. The supply chain simulation models will be based on real business cases to derive analysis insights and provide the optimal solution. The analysis revealed that dynamic models offer the highest cost savings, particularly when inventory levels are high. For situations with low inventory levels, the static model with transhipments is recommended despite the high variation in demand, albeit with longer lead times is required. In contrast, when the lead time is short, the dynamic model with order splitting provides the maximum flexibility in the transportation network despite the high variability in demand, inventory and lead time while providing the highest order fulfilment rates with low transportation costs if the penalty costs were kept low. In the event where the customers does not welcome partial orders or has high penalty costs with short lead times, the dynamic order fulfilment model can be implemented with scenarios with low demand variability. Higher flexibilities must be incorporated into the supply chain network to provide higher service levels and lower transportation costs. Bachelor of Engineering (Mechanical Engineering) 2023-06-05T00:08:36Z 2023-06-05T00:08:36Z 2023 Final Year Project (FYP) Loo, J. L. (2023). Dynamic order allocation in E-commerce supply network. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/167778 https://hdl.handle.net/10356/167778 en B315 application/pdf Nanyang Technological University |
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Engineering::Industrial engineering::Supply chain Loo, Jia Lin Dynamic order allocation in E-commerce supply network |
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The rising popularity of E-commerce caused huge demand surges for the retailers to effectively fulfil orders. With the growing competition and supply disruptions in E-commerce, retailers are concerned about high fulfilment costs and low gross margins, prompting the need for flexibilities in the supply chain networks to mitigate against disruptions. In this paper, we aim to design and analyse several supply chain order fulfilment networks such as static, static with lateral transhipments, dynamic and dynamic with order spitting order fulfilment models. The supply chain simulation models will be based on real business cases to derive analysis insights and provide the optimal solution. The analysis revealed that dynamic models offer the highest cost savings, particularly when inventory levels are high. For situations with low inventory levels, the static model with transhipments is recommended despite the high variation in demand, albeit with longer lead times is required. In contrast, when the lead time is short, the dynamic model with order splitting provides the maximum flexibility in the transportation network despite the high variability in demand, inventory and lead time while providing the highest order fulfilment rates with low transportation costs if the penalty costs were kept low. In the event where the customers does not welcome partial orders or has high penalty costs with short lead times, the dynamic order fulfilment model can be implemented with scenarios with low demand variability. Higher flexibilities must be incorporated into the supply chain network to provide higher service levels and lower transportation costs. |
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Chen Songlin |
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Chen Songlin Loo, Jia Lin |
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Final Year Project |
author |
Loo, Jia Lin |
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Loo, Jia Lin |
title |
Dynamic order allocation in E-commerce supply network |
title_short |
Dynamic order allocation in E-commerce supply network |
title_full |
Dynamic order allocation in E-commerce supply network |
title_fullStr |
Dynamic order allocation in E-commerce supply network |
title_full_unstemmed |
Dynamic order allocation in E-commerce supply network |
title_sort |
dynamic order allocation in e-commerce supply network |
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Nanyang Technological University |
publishDate |
2023 |
url |
https://hdl.handle.net/10356/167778 |
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1772826098167447552 |