Ying Lu
School of Automotive and Traffic Engineering, Jiangsu University, Zhenjiang, China
Junping Xie
School of Automotive and Traffic Engineering, Jiangsu University, Zhenjiang, China
ABSTRACT
Manufacturers today are increasingly adopting hybrid distribution channels to sell their different types of products. This study focuses on the inventory decision problem in hybrid distribution channels involving partial postponement strategy. We develop a decision model for finding the optimal inventory levels of different types of finished products and generic products. Then, a procedure for solving this model is proposed. By using a numerical example we discuss the impact of demand characteristics on the performance of partial postponement. The results show that partial postponement can reduce the decline of the total expected profit in hybrid distribution channels resulting from demand uncertainty and effectively cut down the total inventory cost. Finally, we set future research directions on partial postponement in the context of hybrid distribution channels suggested by our results.
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How to cite this article
Ying Lu and Junping Xie, 2013. Inventory Decision in Hybrid Distribution Channels Involving Partial Postponement Strategy. Information Technology Journal, 12: 8256-8262.
DOI: 10.3923/itj.2013.8256.8262
URL: https://scialert.net/abstract/?doi=itj.2013.8256.8262
DOI: 10.3923/itj.2013.8256.8262
URL: https://scialert.net/abstract/?doi=itj.2013.8256.8262
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