Managing Perishability in Omnichannel Retailing: A Case Study of the Yarn Production Industry.
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| Title: | Managing Perishability in Omnichannel Retailing: A Case Study of the Yarn Production Industry. |
|---|---|
| Authors: | Dehghan, Abolfazl1 (AUTHOR) abolfazldehghan.ie@gmail.com, Fakhrzad, Mohammad Bagher1 (AUTHOR), Sen, Smritijit1 (AUTHOR) smsen@wiley.com |
| Source: | Modelling & Simulation in Engineering. 6/23/2026, Vol. 2026, p1-19. 19p. |
| Subjects: | Supply chain management, Yarn manufacturing, Supply chains, Optimization algorithms, Retail industry |
| Abstract: | This study investigates supply chain coordination for high‐tenacity polyethylene terephthalate industrial yarns in omnichannel retailing environments, with a focus on the reserve online, pick‐up in store (ROPS) strategy. A novel buyback and online profit‐sharing (BOP) contract is developed. This contract addresses two main challenges: customer order cancellations and the gradual loss of yarn tenacity. The research compares decentralized, centralized, and coordinated supply chain structures, demonstrating that the proposed BOP contract significantly enhances overall supply chain performance. The Karush–Kuhn–Tucker (KKT) conditions are used to find optimal values for the decision variables. An optimization algorithm is also developed to solve the model efficiently. Our findings indicate that the coordinated approach increases total profit and optimizes pricing and deposit decisions, with the contract maintaining effectiveness across varying levels of customer loyalty to offline channels and rates of product quality deterioration. Higher customer loyalty to physical stores narrows the feasible range of profit‐sharing parameters. Nevertheless, the BOP contract consistently outperforms decentralized operations. Furthermore, the study shows that while tenacity deterioration negatively impacts both retailers and suppliers, the coordinated structure provides better protection against these effects. Numerical results based on real data from a POY yarn producer demonstrate that the BOP contract can increase total supply chain profit by up to 42%, simultaneously reducing customer deposits by 93% and increasing fulfilled orders by 68% compared to a decentralized system. This research offers valuable managerial insights for implementing ROPS strategies in the retail of high‐tenacity fibers, illustrating how effective contract design can align incentives across supply chain members while addressing operational challenges. [ABSTRACT FROM AUTHOR] |
| Copyright of Modelling & Simulation in Engineering is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
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| Header | DbId: egs DbLabel: Engineering Source An: 194783681 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Managing Perishability in Omnichannel Retailing: A Case Study of the Yarn Production Industry. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Dehghan%2C+Abolfazl%22">Dehghan, Abolfazl</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> abolfazldehghan.ie@gmail.com</i><br /><searchLink fieldCode="AR" term="%22Fakhrzad%2C+Mohammad+Bagher%22">Fakhrzad, Mohammad Bagher</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Sen%2C+Smritijit%22">Sen, Smritijit</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> smsen@wiley.com</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Modelling+%26+Simulation+in+Engineering%22">Modelling & Simulation in Engineering</searchLink>. 6/23/2026, Vol. 2026, p1-19. 19p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Supply+chain+management%22">Supply chain management</searchLink><br /><searchLink fieldCode="DE" term="%22Yarn+manufacturing%22">Yarn manufacturing</searchLink><br /><searchLink fieldCode="DE" term="%22Supply+chains%22">Supply chains</searchLink><br /><searchLink fieldCode="DE" term="%22Optimization+algorithms%22">Optimization algorithms</searchLink><br /><searchLink fieldCode="DE" term="%22Retail+industry%22">Retail industry</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: This study investigates supply chain coordination for high‐tenacity polyethylene terephthalate industrial yarns in omnichannel retailing environments, with a focus on the reserve online, pick‐up in store (ROPS) strategy. A novel buyback and online profit‐sharing (BOP) contract is developed. This contract addresses two main challenges: customer order cancellations and the gradual loss of yarn tenacity. The research compares decentralized, centralized, and coordinated supply chain structures, demonstrating that the proposed BOP contract significantly enhances overall supply chain performance. The Karush–Kuhn–Tucker (KKT) conditions are used to find optimal values for the decision variables. An optimization algorithm is also developed to solve the model efficiently. Our findings indicate that the coordinated approach increases total profit and optimizes pricing and deposit decisions, with the contract maintaining effectiveness across varying levels of customer loyalty to offline channels and rates of product quality deterioration. Higher customer loyalty to physical stores narrows the feasible range of profit‐sharing parameters. Nevertheless, the BOP contract consistently outperforms decentralized operations. Furthermore, the study shows that while tenacity deterioration negatively impacts both retailers and suppliers, the coordinated structure provides better protection against these effects. Numerical results based on real data from a POY yarn producer demonstrate that the BOP contract can increase total supply chain profit by up to 42%, simultaneously reducing customer deposits by 93% and increasing fulfilled orders by 68% compared to a decentralized system. This research offers valuable managerial insights for implementing ROPS strategies in the retail of high‐tenacity fibers, illustrating how effective contract design can align incentives across supply chain members while addressing operational challenges. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Modelling & Simulation in Engineering is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1155/mse/1867654 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 19 StartPage: 1 Subjects: – SubjectFull: Supply chain management Type: general – SubjectFull: Yarn manufacturing Type: general – SubjectFull: Supply chains Type: general – SubjectFull: Optimization algorithms Type: general – SubjectFull: Retail industry Type: general Titles: – TitleFull: Managing Perishability in Omnichannel Retailing: A Case Study of the Yarn Production Industry. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Dehghan, Abolfazl – PersonEntity: Name: NameFull: Fakhrzad, Mohammad Bagher – PersonEntity: Name: NameFull: Sen, Smritijit IsPartOfRelationships: – BibEntity: Dates: – D: 23 M: 06 Text: 6/23/2026 Type: published Y: 2026 Identifiers: – Type: issn-print Value: 16875591 Numbering: – Type: volume Value: 2026 Titles: – TitleFull: Modelling & Simulation in Engineering Type: main |
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