Skip to main content
SpringerLink
Log in

The Impacts of an Electronic Marketplace with Multiple Independent Retailers for Smart Grocery Ordering Systems

  • Published:
Wireless Personal Communications Aims and scope Submit manuscript

Abstract

This study investigates the impacts of an electronic marketplace with multiple independent retailers for a smart grocery ordering system. Apart from replenishing products from suppliers, the system can also purchase/sell products from/to the electronic marketplace through ‘spot shops’. Both static and dynamic pricing models for the electronic marketplace are developed. An extensive numerical experiment is conducted and the results show that under both static and dynamic pricing, (i) the inventory cost of the aggregated supply chain is significantly reduced; (ii) each participant also enjoys significant cost savings from employing the electronic marketplace. Furthermore, the cost savings increase as the lead times from suppliers increase and/or the variability of their demands increases. The participants’ cost savings also increase as more participants employ the electronic marketplace.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Barankin E. W. (1961) A delivery-lag inventory model with an emergency provision. Naval Research Logistics Quarterly 8: 285–311

    Article  MathSciNet  MATH  Google Scholar 

  2. Chiang C. (2001) A note on optimal policies for a periodic inventory system with emergency orders. Computers and Operations Research 28: 93–103

    Article  MathSciNet  MATH  Google Scholar 

  3. Chiang C. (2003) Optimal replenishment for a periodic review inventory system with two supply modes. European Journal of Operational Research 149: 229–244

    Article  MathSciNet  MATH  Google Scholar 

  4. Chiang C., Gutierrez G. J. (1996) A periodic review inventory system with two supply modes. European Journal of Operational Research 94: 527–547

    Article  MATH  Google Scholar 

  5. Chiang C., Gutierrez G. J. (1998) Optimal control policies for a periodic review inventory system with emergency orders. Naval Research Logistics 45: 187–204

    Article  MathSciNet  MATH  Google Scholar 

  6. Daniel K. H. (1962) A delivery-lag inventory model with emergency. In: Scarf H. E., Gilford D. M., Shelly M. W. (eds) Multistage inventory models and techniques. Stanford University Press, Stanford, CA

    Google Scholar 

  7. Dong, L., & Durbin, E. (2001). Markets for surplus components with a strategic supplier. Working paper, Olin School of Business, Washington University, St. Louis, MO. Available online at: http://www.olin.wustl.edu/workingpapers/pdf/2003-10-003.pdf.

  8. Fukuda Y. (1964) Optimal policies for the inventory problem with negotiable leadtime. Management Science 10(4): 690–708

    Article  Google Scholar 

  9. Geoffrion A. M., Krishnan R. (2003) E-business and management science: Mutual impacts (Part 1 of 2). Management Science 49(10): 1275–1286

    Article  Google Scholar 

  10. Geoffrion A. M., Krishnan R. (2003) E-business and management science: Mutual impacts (Part 2 of 2). Management Science 49(11): 1445–1456

    Article  Google Scholar 

  11. Grieger M. (2003) Electronic marketplaces: A literature review and a call for supply chain management research. European Journal of Operational Research 144: 280–294

    Article  MATH  Google Scholar 

  12. Hong K., Kim H. J., Lee C. (2007) Automated grocery ordering systems for smart home. Future Generation Communication and Networking 2: 87–92

    Article  Google Scholar 

  13. Johnson, C., Delhagen, K., & Dash, A. (2002). US e-commerce: The next five years. Forrester Report, August 27, 2002.

  14. Kaplan, S., & Sawhney, M. (2000). E-hubs: The new B2B marketplaces. Harvard Business Review (May/June), 97–104.

  15. Keskinocak P., Tayur S. (2001) Quantitative analysis for internet-enabled supply chains. Interfaces 31(2): 70–89

    Article  MathSciNet  Google Scholar 

  16. Lee L. H., Lee C., Bao J. (2006) Inventory control in the presence of an electronic marketplace. European Journal of Operational Research 174: 797–815

    Article  MathSciNet  MATH  Google Scholar 

  17. Lee H. L., Whang S. (2002) The impact of the secondary market on the supply chain. Management Science 48(6): 719–731

    Article  Google Scholar 

  18. Neuts M. F. (1964) An inventory model with optional lag time. Journal of SIAM 12(1): 179–185

    MathSciNet  MATH  Google Scholar 

  19. Peleg B., Lee H. L., Hausman W. H. (2002) Short-term e-procurement strategies versus long-term contract. Production and Operations Management 11(4): 458–479

    Article  Google Scholar 

  20. Simchi-Levi D., Wu D., Shen Z. (2004) Handbook of quantitative supply chain analysis: Modeling in the e-business era. Kluwer, Dordrecht

    MATH  Google Scholar 

  21. Tagaras G., Vlachos D. (2001) A periodic review inventory system with emergency replenishment. Management Science 47(3): 415–429

    Article  Google Scholar 

  22. Veinott A. F. Jr. (1966) The status of mathematical inventory theory. Management Science 12(11): 745–777

    Article  MathSciNet  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Industrial and Systems Engineering, National University of Singapore, Singapore, Republic of Singapore

    Loo Hay Lee

  2. School of Industrial Management Engineering, Korea University, Seoul, Republic of Korea

    Chulung Lee

  3. Supply Chain Solution Asia Team, Intel Corporation, Beijing, People’s Republic of China

    Jie Bao

Authors
  1. Loo Hay Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Chulung Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Jie Bao
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Chulung Lee.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lee, L.H., Lee, C. & Bao, J. The Impacts of an Electronic Marketplace with Multiple Independent Retailers for Smart Grocery Ordering Systems. Wireless Pers Commun 60, 475–487 (2011). https://doi.org/10.1007/s11277-011-0303-x

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11277-011-0303-x

Keywords

Search

Navigation