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A system dynamics model for optimum time, profitability, and customer satisfaction in omni-channel retailing

Author

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  • Taheri, Seyed Ghiasuddin
  • Navabakhsh, Mehrzad
  • Tohidi, Hamid
  • Mohammaditabar, Davood

Abstract

Omnichannel Retailing (OCR) places a strong emphasis on how different channels work together to offer seamless purchasing experiences for customers. Nevertheless, retailers will incur significant costs in implementing it. This study investigates the variables influencing OCR by examining the executive perspectives required by retailers to realize, expand, and improve OCR. To achieve this, system dynamics is employed, and a model is created to determine the factors influencing three stock variables— profitability, delivery time, and customer satisfaction—as well as the degree to which these effects are present and the connections among them. Before designing the model, the influential variables were extracted from the literature by considering the experts’ opinions. Then, the optimal values of the variables were evaluated by creating two different scenarios and three policies. The findings showed that utilizing OCR contributes to both the highest possible profit and level of customer satisfaction. Moreover, to achieve the lowest level of delivery time, we proposed three policies: 1) the creation of a distribution center, 2) inventory management and safety stock, and 3) demand management. The results of the implementation of these policies are given at the end of the article.

Suggested Citation

  • Taheri, Seyed Ghiasuddin & Navabakhsh, Mehrzad & Tohidi, Hamid & Mohammaditabar, Davood, 2024. "A system dynamics model for optimum time, profitability, and customer satisfaction in omni-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:joreco:v:78:y:2024:i:c:s0969698924000808
    DOI: 10.1016/j.jretconser.2024.103784
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