Profit Analyzing in E-commerce Supply Chain Organization

E-commerce is linked with great expectations of sustained improvements in economic organization, and in the same time, e-commerce also modified supply chain structures. In this article, we assess different forms of existing organizations when a store-based sales network coexists with a Web site order network. Three main organizational models can be detected: ldquostore-pickingrdquo, ldquodedicated warehouse-pickingrdquo and ldquodrop-shippingrdquo. We use a ldquonewsboyrdquo order policy model to compare the advantages of these different models and to note the impact of some parameters on inventory and flow management policies throughout the supply chain. The results show that we can adopt an economic supply chain organization corresponding to the size of the market.