옴니채널 추진에 따른 최적 공급사슬 구조

Hag-Soo Kim

(First Author) Dept. of Bus. Admin. Gyeonsang National University bbhskim@naver.com

Optimizing Supply Chain Structure To Embrace Omnichannel Marketing

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We investigate the optimal supply chain structure in inventory location with the advance of omnichannel in the retail industry. Based on a dyadic supply chain consisting of a supplier and buyer(s) considering asymmetric information and flexible production lead times, we show that a dichotomous inventory location, combining VMI (Vendor Managed Inventory) and RMI(Retailer Managed Inventory), is optimal for the whole system in the presence of nonstationary demand across periods and asymmetric information between the suppplier and the buyer(s). Next, on the request of mass merchandisers to increase material availability under omnichannel initiatives, we show that more investment in reducing the production lead time is necessary when customer demands are less correlated across periods. It seems that such guideline for the investment in material availability can be more valuable with an increasing trend of omnichannel initiatives to revamp consumer experience in an uncertain market environment.

Keywords:

Omnichannel, Supply Chain, Vendor Managed Inventory, Asymmetric Information

Acknowledgments

This research was supported by development fund foundation, Gyeongsang National University, 2021. The author appreciates anonymous reviewers for providing valuable comments.

References

Baljko, J.(2003), “VMI Study Shows Cost Disparity Among Partners-Inventory Programs Benefit OEMs, Not Suppliers,” Electronic Buyer’s News, 7 April 2003.
Barnes-Schuster D, Y. Bassok, and R. Anupindi(2006), “Optimizing Delivery Lead Time/Inventory Placement in a Two-Stage Production/Distribution System,” European Journal of Operational Research, 174(33), pp.1664-1684. [https://doi.org/10.1016/j.ejor.2002.08.002]
Bell, D. R., S. Gallino, and A. Moreno(2014), “How to Win in an Omnichannel World,” Sloan Management Review, 56, pp.45-53.
Bourland, K., S. Powell, and D. Pyke(1996), “Exploring Timely Demand Information to Reduce Inventories,” Eur. J. Oper. Res., 92, pp.239-253. [https://doi.org/10.1016/0377-2217(95)00136-0]
Brynjolfsson, Erik, Yu Jeffrey Hu and Mohammad S. Rahman(2013), “Competing in the Age of Omnichannel Retailing,” Sloan Management Review, 54(4), 2 pp.3-29.
Cachon, G., and M. Fisher(2000), “Supply Chain Inventory Management and the Value of Shared Information,” Management Science, 46, pp.1032-1048. [https://doi.org/10.1287/mnsc.46.8.1032.12029]
Chen, F., A. Federgruen, and Y. S. Zheng(2001), “Coordination Mechanisms for a Distribution System with One Supplier and Multiple Retailers,” Management Science, 47, pp.693-708. [https://doi.org/10.1287/mnsc.47.5.693.10484]
Fry, M. J., R. Kapuscinski, and T. L. Olsen(2001), “Coordinating Production and Delivery Under a(z, Z)-Type Vendor-Managed Inventory Contract,” Manufacturing & Service Operations Management, 3(2), pp.151-173. [https://doi.org/10.1287/msom.3.2.151.9989]
Gallino, S., A. Moreno, and I. Stamatopoulos(2016), “Channel Integration, Sales Dispersion, and Inventory Management,” Management Science, 63(9), pp.2813-2831. [https://doi.org/10.1287/mnsc.2016.2479]
Gao, F., and X. Su(2016), “Omnichannel Retail Operations with Buy-Online-and-Pick-up-in-Store,” Management Science, 63(8), pp.2478-2492. [https://doi.org/10.1287/mnsc.2016.2473]
Goyal, S. K.(1988), “A Joint Economic-Lot-Size Model for Purchase and Vendor: A Comment,” Decision Sciences, 19, pp.236-241. [https://doi.org/10.1111/j.1540-5915.1988.tb00264.x]
Graves, S.(1996), “A Multi-Echelon Inventory Model with Fixed Replenishment Intervals,” Management Science, 42, pp.1-18. [https://doi.org/10.1287/mnsc.42.1.1]
Herhausen, D., J. Binder, M. Schoegel, A. Herrmann(2015), “Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration,” Journal of Retailing, 91(2), pp.309-325. [https://doi.org/10.1016/j.jretai.2014.12.009]
Jalbar, B. A, J. Gutierrez, and J. Sicilia(2005), “Integer-Ratio Policies for Distribution/Inventory Systems,” International Journal of Production Economics, 93-94, pp.407-415. [https://doi.org/10.1016/j.ijpe.2004.06.037]
Lee, H. L, K. So, and C.Tang(2000), “The Value of Information Sharing in a Two-Level Supply Chain,” Management Science, 46, pp.626-643. [https://doi.org/10.1287/mnsc.46.5.626.12047]
Lee, H. L, and S. Whang(1999), “Decentralized Multi-Echelon Inventory Control Systems: Incentives and Information,” Management Science, 45, pp.633-640. [https://doi.org/10.1287/mnsc.45.5.633]
Lu, L.(1995), “A One-Vendor Multi-Buyer Integrated Inventory Model,” European Journal of Operational Research, 81, pp.312-323. [https://doi.org/10.1016/0377-2217(93)E0253-T]
Radhi, M., and G. Zhang(2019), “Optimal Cross-Channel Return Policy in Dual-Channel Retailing Systems,” International Journal of Production Economics, 210, pp.184-198 [https://doi.org/10.1016/j.ijpe.2019.01.014]
Raghunathan, S.(2001), “Information Sharing in a Supply Chain: A Note on its Value when Demand is Nonstationary,” Management Science, 47, pp.605-610. [https://doi.org/10.1287/mnsc.47.4.605.9833]
Raghunathan, S., and A. B. Yeh(2001), “Beyond EDI: Impact of Continuous Replenishment Program (CRP) Between a Manufacturer and Its Retailers,” Information Systems Research, 12(4), pp.406-419. [https://doi.org/10.1287/isre.12.4.406.9701]
Raghunathan S.(2003), “Impact of Demand Correlation on the Value of and Incentives for Information Sharing in a Supply Chain,” European Journal of Operational Research, 146(3), pp.634-649. [https://doi.org/10.1016/S0377-2217(02)00365-X]
River Logic(2022), “10 Things about Omni Channel Supply Chain You may not have Known,” https://www.riverlogic.com/blog/10-things–about-omni-channel-supply-chain-you-may-not-have-known, (retrieved April 2022).
Schenck, J., and J. McInerney(1998), “Applying Vendor Managed Inventory to the Apparel Industry: What’s Working, What’s Not and What’s Next,” Automatic I. D. News, 14(6), pp.36-38.
Shao, X. F.(2020), “Online and Offline Assortment Strategy for Vertically Differentiated Products,” IISE Transactions, 52(6), pp.617-637. [https://doi.org/10.1080/24725854.2019.1665758]
Shao, X.F.(2021), “Omnichannel Retail Move in a Dual-Channel Supply Chain,” European Journal of Operational Research, 294(3), pp.936-950. [https://doi.org/10.1016/j.ejor.2020.12.008]
Yao, Y, P. T. Evers, and M. E. Dresner(2007), “Supply Chain Integration in Vendor-Managed Inventory,” Decision Support Systems, 43, pp.663-674. [https://doi.org/10.1016/j.dss.2005.05.021]
Walmart(2019), “Nestle Purina-Beefing up their Walmart Partnership,” https://www.walmartmedia.com/nestle-purina-case-study, (retrieved Jan 2021).
WalmartMediaGroup(2020), “Inside Look: Walmart media group continues to gain momentum,” https://corporate.walmart.com/newsroom/2020/12/16/inside-look-walmart-mediagroup-continues-to-gain-momentum, (retrieved Jan 2021).
Zhang, T., L. Liang, Y. Yu, and Y.Yu(2007), “An Integrated Vendor-Managed Inventory Model for a Two-echelon System with Order Cost Reduction,” International Journal of Production Economics, 109, pp.241-253. [https://doi.org/10.1016/j.ijpe.2006.12.051]

∙ The author Hag-Soo Kim is a professor at Dept. of Bus. Admin. Gyeongsang National University. He got a Ph.D. from Northwestern University and published papers in leading journals such as Management Science. His current work includes Big Data strategy of supply chains under information asymmetry, strategy of SaaS solutions under supply chain competition, and Platform based competition in digital business.