Supply Chain Configuration and Optimization for Dual-Channel Commerce

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At the internet age, e-commerce has become one of major marketing channels for many firms and increases dramatically in recent years. As firms integrate e-business into their existing businesses, they migrate from traditional physical retail channel to combined physical and virtual channels. This shift brings the new significant challenges to supply chain and logistics management because the customers from e-commerce are widely distributed geographically, and the implied uncertainty and variation of demands from both channels are much higher than traditional. This research aims to analyze the impact of dual-channel commerce on supply chain and logistics management, and to provide solutions on how to configure effective supply chain network under dual-channel business environment. It covers key strategic, tactic, and operational decision problems for supply network design and supply chain coordination under dual-channel commerce. In details, this research will cover the following topics: • Configuration of supply network for dual-channel commerce with stochastic demand, including the facility location, inventory, warehousing, transportation, market allocation, and sourcing decision; • Study of closed loop supply chain for dual-channel commerce with stochastic returns from both channels and remanufacturing; • Design of the pricing strategies under dual-channel business and impact analysis on supply network design and supply chain coordination; • Modeling, algorithms, and analytics for supply chain configuration and optimization in dual-channel commerce environment, including optimization, big data analysis, and game theory models. The study on supply network design under dual-channel commerce will lead a significant contribution to the research on supply chain management, and provide insights and guidance for retail and manufacturing industry that are under pressure to transfer traditional single channel to integrated dual-channel commerce.