Optimisation of cross-channel order fulfilment for click-and-collect practice in omnichannel retailing

Fitri, Ulfa (2018) Optimisation of cross-channel order fulfilment for click-and-collect practice in omnichannel retailing. [Dissertation (University of Nottingham only)]

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Retailing business thrives on the implementation of click-and-collect service as one

of the main options for the online orders. The primary concern in this service of

omnichannel practice is the costly picking operations while at the same time it plays

the major role in customer satisfaction. Therefore, the need to pursue an efficient

picking configuration arises. To cope up with this issue, retailers convey the

advantages of using the cross-channel fulfilment to serve the online demand.

This study is oriented towards the formulation of a mathematical model to obtain the

cost-optimal settings and configuration of picking operations for click-and-collect in

omnichannel retailing. The Voronoi diagram approach is employed in the problem

formulation to cluster the customer demand into hexagon region in a hierarchical

facilities level. A suggestion regarding the degree of centralisation for picking activity

has been made by incorporating three primary costs: picking cost, inbound

transportation cost and the fixed cost for setting up picking and collection points.

The result reveals the optimal order picking rate and order accumulation time in each

level of centralisation for the picking facility with a predefined maximum tolerable

distance for customers to collect the orders. Moreover, this output can be used to

identify the attractive offers for customers which complement the needs of internal

fulfilment operations. The result is further supported by the sensitivity analysis

showing the pattern of behaviour changes on the optimal solution given various

values of the model parameters. It is inferred that centralised picking configuration

befits the operations when the maximum tolerable collection distance is low, the fixed

cost is high, optimal picking rate is low and orders accumulation time is high. The

study also highlights the comparison of fully decentralised, centralised and hybrid

configuration which can be an insight for decision-making processes at the

managerial level.

Item Type: Dissertation (University of Nottingham only)
Keywords: Omni-Channel, Order Fulfillment, Click-and-collect
Depositing User: Fitri, Ulfa
Date Deposited: 21 Nov 2022 15:57
Last Modified: 21 Nov 2022 15:57
URI: https://eprints.nottingham.ac.uk/id/eprint/54692

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