Impact of Replenishment Strategies on Supply Chain Performance under e-Shopping Scenario

Abstract

TSL and EOQ scenarios confirm the existence of bullwhip effect in e-shopping supply chains.Managerial decisions influence supply chain performance in the e-shopping environment.Research indicates to prefer TSL over EOQ replenishment strategy in the Online Shopping Platform based businesses. With the development of Information and communication technologies (ICT), the supply chain performance and its management techniques have significantly transformed. The internet revolution has bought the surge in online shopping platforms attracting millions of small size manufactures to engage in the nascent business models. The research attempts to identify the factors influencing the supply chain performance for small size manufacturers under e-shopping scenario. The system dynamics simulation approach is attempted to assess the impact of replenishment strategies on supply chain performance indicators. The results reveal the existence of bullwhip effect in the e-shopping supply chains due to backlogged orders and management decisions. The comparison between two different inventory control strategies with replenishment patterns indicates that the target stock level method performs better over economic order quantity method under e-shopping scenario.