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Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?

Author

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  • Sarkar, Biswajit
  • Kar, Sumi
  • Pal, Anita

Abstract

Nowadays, industries attempt to give satisfaction to customers by providing a conditional free home delivery strategy in a dual-channel as recent customers want to get home delivery facility without going to the retail store. In a supply chain management model under a dual-channel retailing strategy, data sharing policy between the supply chain members play a vital role. Asymmetric data sharing causes the bullwhip effect, which affects the whole supply chain. In this study, a supply chain making up of a manufacturer and a retailer is developed. The manufacturer sells products through offline, while the retailer sells products through both online and offline channels by giving a conditional home delivery policy in both channels. That means customers can get a free home delivery policy from both channels if customers purchase an extra amount than a certain amount which the retailer fixes. The supply chain model is examined both analytically and numerically. A classical optimization technique and an integer programming problem are used to solve the model numerically. From the numerical section, it is found that if there is no bullwhip effect, the system gives a 0.17% better result. If the retailer allows a free home delivery policy, then the system provides 54.75% less profit and if the retailer allows a fully paid home delivery policy then the system provides 54.58% less profit.

Suggested Citation

  • Sarkar, Biswajit & Kar, Sumi & Pal, Anita, 2024. "Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:joreco:v:78:y:2024:i:c:s0969698924000043
    DOI: 10.1016/j.jretconser.2024.103708
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