Optimizing order-routing decisions : leveraging omni-channel supply chain fulfillment

Abstract

This thesis provides a deep mathematical analysis of the diverse alternatives for routing models considering an Omni-channel supply chain. The natural evolution of supply chains from traditional brick-and-mortar stores to an omni-channel supply chain, encompassing and merging e-commerce together with a multi-channel concept, allows businesses to reach new levels of operational efficiency by leveraging inventory closer to the customer and making decisions on the fly on how to better and more cheaply provide a service/product to the final consumer. The flexibility and benefits, unfortunately, do not come without a certain dose of complexity and further development of the supply chain tactical implementation and systems. New alternatives to fulfill customer orders are available, which require greater screening among the different alternatives. An effective routing model becomes essential to make sure these alternatives are properly considered in order to satisfy both the consumer and retailer objectives, such as on-time delivery of orders, retail stores' service levels, and fulfillment costs.