Optimal in-store fulfillment policies for online orders in an omni-channel retail environment

The explosive growth of e-commerce creates a need for increasingly responsive omni-channel fulfillment capabilities, which raises new challenges in inventory management and order retailers. In response to these challenges, many retailers attempt establish so-called ship-from-store concepts, leverage their physical store networks fulfill online orders. this study, we analyze the optimal setup in-store processes orders an retailer. We use simulation-based approach combined with exploratory modeling prescribe policies under variety sources uncertainty. apply our proposed model case study informed by real data from leading sports fashion retailer New York City illustrate practical applicability value approach. Our results determine (i) amount time allow batching prior starting picking process; (ii) readily picked delivery (iii) number pickers; (iv) packers, related performance measures. Finally, build on analysis derive set managerial implications applicable problems.