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Comparative analysis of omnichannel and multichannel networks: a system dynamics approach
Faculty
Engineering
Year:
2024
Type of Publication:
ZU Hosted
Pages:
29
Authors:
Staff Zu Site
Abstract In Staff Site
Journal:
Production Engineering Springer
Volume:
Keywords :
Comparative analysis , omnichannel , multichannel networks: , system
Abstract:
The exponential rise in online demand has led to a big change in the transformation of the commerce landscape, compelling businesses to respond strategically by implementing omnichannel strategies. These strategies, designed to integrate physical and digital retail experiences seamlessly, align with the continuously evolving expectations of consumers. This study introduces a system dynamics model to comprehensively investigate the intricate details of omnichannel network design, elucidating the complex interconnections and feedback loops among customer behavior, facility integration, and inventory management. Furthermore, a system dynamics framework is employed to analyze omnichannel behavior and evaluate the impacts of integrating market share, costs, profts, and inventory levels. The utilization of this framework and its fndings can assist in policy formulation and decision-making processes concerning the omnichannel network. After running several scenarios over 32 distinctive product cases, it was determined that durable, slow-moving products with high proftability generate better revenue in a multichannel environment than in an omnichannel one. On the other hand, bulky commodities with low margins and high replenishment costs perform much better in an omnichannel than in a multichannel. However, there are no concrete statistical clues that other product types perform diferently in either environment
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