Three Essays on Assortment Planning in Omni-Channel Retail Supply Chains

Aslani, Amin

Three Essays on Assortment Planning in Omni-Channel Retail Supply Chains

dc.contributor.advisor	Alp, Osman
dc.contributor.author	Aslani, Amin
dc.contributor.committeemember	Alp, Osman
dc.contributor.committeemember	Bijvank, Marco
dc.contributor.committeemember	Sabouri Bagh Abbas, Alireza
dc.contributor.committeemember	Bagga, Charan Kamal
dc.contributor.committeemember	Pun, Hubert
dc.date	2023-11
dc.date.accessioned	2023-08-23T21:42:39Z
dc.date.available	2023-08-23T21:42:39Z
dc.date.issued	2023-08
dc.description.abstract	In omni-channel retail systems, comprising an online sales website and brick-and-mortar (physical) stores, a physical store typically faces limited shelf-space capacity, while capacity is not an issue for the online channel. Consequently, a crucial aspect of such retail systems is to choose a subset of products present online for showcasing in the physical store (i.e., assortment planning). In my first research stream, I investigate the omni-channel assortment problem when product returns are allowed. Assortment decisions influence product returns, as showcased products provide information to online shoppers who visit the physical store. Therefore, although product returns can be a factor for profit loss, effective assortment planning can mitigate the returns’ adverse impact and optimize profitability. My results indicate that even with sufficient capacity, showcasing all products in the physical store may not be optimal. Additionally, retailers generally fare better when customers undervalue hidden attribute levels. In my second research stream, I explore a decentralized retail supply chain (RSC) comprising an online channel managed by a manufacturer setting wholesale prices, and an independent retailer managing the physical store and making assortment decisions. As a benchmark, I examine a centralized setting where both channels are under a central authority aiming to maximize overall profit. My findings show fundamental differences in optimal centralized and decentralized assortments, indicating inefficiency in the decentralized approach. I propose scope contracts for coordination, wherein the manufacturer offers discounts on wholesale prices for products with specific attribute levels, incentivizing the retailer to adopt the centralized assortment. The scope contracts ensure both parties' profitability and coordinate the RSC. In the third stream, I suppose that the magnitude of inaccuracy in online assessment of products due to the lack of physical encounter is unknown to the RSC parties, and they make decisions with asymmetric information. I investigate the assortment and wholesale price decisions along with profit regrets. My findings under the decentralized setting indicate that while both parties cannot fare better simultaneously, each party can be advantaged under certain conditions. Under the centralized setting, when supposing accurate online assessments, showcasing an assortment of the highest utility attribute levels possibly minimizes system-wide regret.
dc.identifier.citation	Aslani, A. (2023). Three essays on assortment planning in omni-channel retail supply chains (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.
dc.identifier.uri	https://hdl.handle.net/1880/116887
dc.identifier.uri	https://dx.doi.org/10.11575/PRISM/41729
dc.language.iso	en
dc.publisher.faculty	Haskayne School of Business
dc.publisher.institution	University of Calgary
dc.rights	University of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.
dc.subject	Assortment Planning, Omni-Channel Retail, Supply Chain Management, Coordination, Information Asymmetry
dc.subject.classification	Business Administration--Management
dc.subject.classification	Engineering--Operations Research
dc.subject.classification	Education--Business
dc.title	Three Essays on Assortment Planning in Omni-Channel Retail Supply Chains
dc.type	doctoral thesis
thesis.degree.discipline	Haskayne School of Business: Management
thesis.degree.grantor	University of Calgary
thesis.degree.name	Doctor of Philosophy (PhD)
ucalgary.thesis.accesssetbystudent	I do not require a thesis withhold – my thesis will have open access and can be viewed and downloaded publicly as soon as possible.