S-Space College of Business Administration/Business School (경영대학/대학원) Institute of Information and Operation Management (경영정보연구소) Journal of information and operations management (경영정보논총) Journal of information and operations management vol.09 (1999) (경영정보논총)
RISK-POOLING EFFECTS OF DIRECT SHIPPING IN A ONE-WAREHOUSE N-RETAILER DISTRIBUTION SYSTEM
- Park, Sangwook
- Issue Date
- 서울대학교 경영정보연구소
- Journal of information and operations management, Vol.09, pp. 43-52
- The other day I visited one of discount stores in my area. Service Merchandise to buy a humidifier. I decided to buy one of the models exhibited in the store. filled out an order form, and submitted it to a cashier. But the cashier told me that the model I chose was out of stock. After checking its availability at other places (i.e.. the company distribution center and other stores), she suggested that she could ship what I wanted to me directly without additional shipping and handling charge. I did so and the humidifier arrived in about a week. Through this experience, I got to know that this type of direct shipping from a distribution center or a retail store with available inventory is very common in the U.S retail industry. This paper models direct shipping in a multi-echelon distribution system.