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Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics

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  • Pourya Pourhejazy

    (Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan)

Abstract

The Internet has brought about new possibilities for innovation and radically changed business activities. Internet shopping is a prime example of increasing popularity, which is exacerbated due to the recent pandemic. It is expected that e-commerce will accommodate more than a quarter of the total retail sales worldwide in the next few years. Given the characteristics of e-commerce, inventory management is of paramount importance for an effective and timely response to the online customers’ demand. Despite its relevance, the issue of warehouse excess inventory is not sufficiently studied in the operations management literature. This study explores the factors, including sustainability and strategic considerations, that influence the inventory destruction decisions as one of the alternatives for managing excess inventory. Applying the Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) method, the interrelationships between the decision factors are investigated and the decisive considerations are identified. Overall, the outcomes provide insights for the e-commerce practitioners and offer directions for modeling and managing inventory destruction decisions.

Suggested Citation

  • Pourya Pourhejazy, 2020. "Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics," Sustainability, MDPI, vol. 12(20), pages 1-12, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8365-:d:426442
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    4. Pourhejazy, Pourya & Zhang, Dali & Zhu, Qinghua & Wei, Fangfang & Song, Shuang, 2021. "Integrated E-waste transportation using capacitated general routing problem with time-window," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    5. Giammanco, Maria Daniela & Gitto, Lara, 2020. "Government measures and economic activity during the COVID-19 outbreak: some preliminary short-term evidence from Europe," MPRA Paper 105072, University Library of Munich, Germany.
    6. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Maryam Aziz & Abdul Basit & Ifra Aziz Khan Niazi, 2023. "Using the Binary Matrices for Modeling the Supply Chain Issues of Virtual Shops: An Evidence from Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 548-564.
    7. Yugang He & Renhong Wu & Yong-Jae Choi, 2021. "International Logistics and Cross-Border E-Commerce Trade: Who Matters Whom?," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    8. Erik Schulze-González & Juan-Pascual Pastor-Ferrando & Pablo Aragonés-Beltrán, 2021. "Testing a Recent DEMATEL-Based Proposal to Simplify the Use of ANP," Mathematics, MDPI, vol. 9(14), pages 1-23, July.

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