An empirical study on demand and supply integration
The LCL invites you to a Research seminar by Prof. Martin Dresner.
Abstract
This study empirically assesses the impact of delivery variety on sales.
We find that a decision to increase delivery variety will indirectly improve sales through the mediating role of the fill rate. Furthermore, our results suggest that decisions on order variety moderates this mediation effect. We estimate our models using archival data of 14,908 distribution center-week observations including deliveries, order fulfillment, sales records, and other operational data over three years.
When the number of delivery methods increases from 1 to 3, fill rates increase by 1.22% and sales increase by 15.39%, and when the number of order methods increases from 1 to 4, the impact of delivery variety on fill rates increases by an additional 0.39% and on sales by an additional 4.68%.
These findings provide empirical support for the need for top management to consider the complementary benefits of delivery variety and order variety on order fulfillment and sales.
About the speaker
Dresner’s research focuses on two broad areas, air transport policy and logistics management.
He has published papers in leading transportation and logistics journals, as well as journals in related fields, and has co-authored a book on supply chain management. Professionally, he is Series Editor for Research in Transportation Economics, and is active in several organisations, including the Air Transport Research Society and the Transportation Research Forum.
He has testified before the House Aviation Subcommittee and has worked on consulting projects for a number of organisations, including the Maryland Aviation Administration and the U.S. Department of Energy.