Bi-objective optimization model for store selection for BOPS service in omni-channel retail chain

Ramanathan, U. ORCID: 0000-0002-7473-4643, Jain, A., Darbari, J. and Jha, P.C., 2022. Bi-objective optimization model for store selection for BOPS service in omni-channel retail chain. IEEE Transactions on Engineering Management. ISSN 0018-9391

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Owing to the relentless stress on innovative solutions for businesses to succeed in a highly customer-dominated market, the process of having an omni-channel supply chain has become crucial for the Indian retail industry. But channel integration requires careful restructuring of the supply chains. Thus, retailers are finding ways for launching services like Buy Online Pickup in Store (BOPS) in such a way that they are beneficial for them. The problem addressed in the current research is that of a multi-channel retailer who wants to provide a BOPS fulfilment option to its customers. The pickup points are to be set up at the existing retail store locations of the retail firm. For this purpose, a bi-objective mathematical programming model is developed for: (i) identifying existing retail stores which should be expanded as pick-up points, and (ii) determining the expansion capacity of the selected retail stores. Weighted goal programming technique is utilized to achieve a trade-off between the objectives of cost minimization and utility achievement of retail stores under various constraints incorporating demand requirements, budgetary restrictions on expansion, optimum capacity utilization, and the performance scores of the retail stores evaluated by the decision makers on the basis of criteria like accessibility, attractiveness, etc. The model is validated with the help of a case of an Indian multi-channel retail firm. From the results obtained, it can be concluded that adopting an all-inclusive strategy for retail store selection is not beneficial for retailers. Also, the results point out that the performance of the retail store is an important factor to consider while selecting the retail store for pickup points.

Item Type: Journal article
Publication Title: IEEE Transactions on Engineering Management
Creators: Ramanathan, U., Jain, A., Darbari, J. and Jha, P.C.
Publisher: Institute of Electrical and Electronics Engineers
Date: 2 September 2022
ISSN: 0018-9391
Rights: © 2022 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 29 Jun 2022 10:18
Last Modified: 24 Aug 2023 14:33

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