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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Main Author: Loo, Jia Lin
Other Authors: Chen Songlin
Format: Final Year Project
Language:English
Published: Nanyang Technological University 2023
Subjects:
Online Access:https://hdl.handle.net/10356/167778
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Institution: Nanyang Technological University
Language: English
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spelling 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
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic Engineering::Industrial engineering::Supply chain
spellingShingle Engineering::Industrial engineering::Supply chain
Loo, Jia Lin
Dynamic order allocation in E-commerce supply network
description 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.
author2 Chen Songlin
author_facet Chen Songlin
Loo, Jia Lin
format Final Year Project
author Loo, Jia Lin
author_sort 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
publisher Nanyang Technological University
publishDate 2023
url https://hdl.handle.net/10356/167778
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