Results | Advanced Topics in End User Computing, Vol. 3

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The organizational performance (inventory level, order cycle, and availability) construct from the research model is operationalized through inventory data obtained. A sample is collected from a retail organization in order to examine the distributor-retail outlet and retail outlet-customer links in the SC. Validity and reliability tests verify that the data is useful; therefore further analyses are conducted.

Sample

The sample represents a large retailer with stores throughout the United States. Sample data is collected from the retailer's website (SC) replenishment system and reflects all of the organization's distributors (both company based and outside vendors) and customers (end users) that use that system (i.e., the distributor-retail outlet link and the retail outlet-customer link in the SC). The inventory replenishment system used by the organization is extensive, with a large amount of data for every product sold. The information is automatically updated when the product is sold.

In order to determine the effectiveness of electronic SC replenishment using the Internet (i.e., website retailing) when comparing different replenishment options, a sample is taken that consists of inventory data collected, measuring organizational performance for the distributor-retail outlet link and the retail outlet-customer link. The sample represents both organization replenishment and vendor replenishment. Specific performance data sampled for the SC are: (1) on-hand quantity (inventory level at the retail outlet), (2) on-order quantity (order cycle from the distributor), and (3) total units sold (availability to the customer). The sample data is for a seven-month period, from the time of the website (retailing) implementation (February) for the organization until seven months later (August). Data is collected for 515 products across 24 product categories based on the replenishment option (filled by the organization or by an outside vendor).

On-hand quantity (inventory level) is the item balance on-hand at the retail outlet. On-hand quantity has a total sample of 3,605 observations. On-order quantity (order cycle) is the planned product quantity on order from the distributor and has a total sample of 3,605 observations. Total units sold (availability) is the number of product units sold to the end user (customer). Total units sold has a total sample of 3,581 observations. Table 1 details the means and sample sizes of the performance measures by replenishment option for each variable. These variables are also assessed to determine inventory management and customer (end user) buying habits when conducting business (i.e., electronic retailing) via a website.

Table 1: Sample Means by Replenishment Option ^[*]
	Replenishment Option
	Organization	Vendor
On-hand quantity	19.95	7.86
On-hand quantity	(3458)	(147)
On-order quantity	1.80	0.00
On-order quantity	(3458)	(147)
Total units sold	2.18	0.34
Total units sold	(3436)	(145)
^[]Mean value (n)*

Analysis

The following analyses examine the differences in organizational performance measures given the replenishment option. Moreover, total units sold is explored over time (monthly), as well as by product category, and on-hand quantity and on-order quantity is analyzed over time and by product category to investigate inventory management and end user buying habits via a website.

On-hand quantity, on-order quantity, and total units sold are analyzed using the inventory data from the sample. Using z-tests, on-hand quantity (p-value<.0001) and on-order quantity (p-value=.0119) are significantly lower for the vendor replenishment as compared to the organization replenishment, but total units sold (p-value=.0670) is greater when using the organization's replenishment option. Table 2 summarizes the z-test findings.

Table 2: Analysis of Differences ^[*]
	Replenishment Option
	Organization	Vendor
On-hand quantity	19.95	7.86
	(3458)	(147)
	p<.0001
On-order quantity	1.80	0.00
	(3458)	(147)
	p=.0119
Total units sold	2.18	0.34
	(3436)	(145)
	p=.0670
^[]Mean value (n)*

The significance of the results of this study is realized through further analysis of total units sold. Table 3 shows total units sold over the seven-month period given the replenishment option, and Table 4 summarizes the z-tests of total units sold analyzed across the seven-month period. Table 3 indicates that the organization replenishment option has resulted in more products being sold over the website from the time of the website implementation in February until August of the same year, and Table 4 shows a significant difference in the total units sold as the months progress (between months May and June and months July and August). These tables indicate that more products have been sold via the website as consumers become more familiar with it.

Table 3: Total Units Sold over Time and by Replishment Option ^[*]
	Replenishment Option
	Organization	Vendor
February	0.87 (494)	0.74 (20)
March	2.01 (494)	0.29 (21)
April	1.37 (494)	0.24 (21)
May	1.44 (494)	0.24 (21)
June	3.25 (494)	0.33 (21)
July	2.44 (494)	0.48 (21)
August	3.40 (494)	0.10 (21)
^[]Mean value (n)*

Table 4: Total Units Sold Analyzed Across Months ^[*]
	Month Set 1		Month Set 2		Month Set 3		Month Set 4		Month Set 5		Month Set 6
	Feb	March	March	April	April	May	May	June	June	July	July	Aug
Total Units Sold	0.86 (514)	2.01 (515)	2.01 (515)	1.37 (515)	1.37 (515)	1.44 (515)	1.44 (515)	3.25 (515)	3.25 (515)	2.44 (515)	2.44 (515)	3.40 (515)
Total Units Sold	p=.2514		p=.3434		p=.8828		p=.0158		p=.2825		p=.0387
^[]Mean value (n)*

Table 5 further explores total units sold in terms of what product categories are being utilized. In other words, what product categories are being sold from via the website to end consumers. Clearly, electronics (office electrics, electronic accessories, and electronics) are purchased most often, followed by small appliances, video games, sporting goods, and computer software. Hardware, domestics, automotive, jewelry, toys, housewares, office supplies, seasonal hardware, health and beauty aids, furniture, books, and luggage are also represented as being purchased via the website.

Table 5: Total Units Sold Count based on the Product Category^[*]

	Health and Beauty Aids	Office Supplies	Electronics	Electronic Accessories	Toys	Sporting Goods	Automotive	Hardware	Seasonal Hardware	Janitorial	Housewares	Small Appliances
February	0	0	80	48	2	12	11	4	1	0	14	35
February	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
March	0	0	109	516	33	3	27	27	15	0	18	67
March	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
April	0	0	76	195	22	9	18	32	5	0	18	92
April	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
May	0	0	72	214	29	12	16	25	4	0	4	99
May	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
June	1	15	191	408	52	62	42	30	15	0	14	89
June	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
July	12	34	149	275	1	69	28	22	9	0	18	94
July	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
August	31	26	263	371	3	100	23	57	21	0	25	120
August	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
Total	44	75	940	2027	142	267	165	197	70	0	111	596
Total	(35)	(56)	(518)	(476)	(112)	(140)	(98)	(154)	(14)	(7)	(70)	(154)
^[]Count (n)*

	Horticulture	Furnture	Seasonal	Domestics	Computer Software	Office Electrics	Pharmacy OTC	Luggage	Cookies / Crackers	Video Games	Jewelry	Books
February	0	2	0	36	19	144	0	0	0	0	30	1
February	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(83)	(1)
March	0	5	0	32	18	137	0	0	2	0	14	9
March	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
April	0	2	0	15	23	181	0	0	1	0	15	1
April	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
May	0	2	0	18	23	184	0	4	2	0	26	1
May	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
June	0	1	0	32	46	608	0	0	0	35	27	0
June	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
July	0	1	0	22	42	327	0	0	0	106	27	1
July	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
August	0	1	0	34	33	467	0	1	0	142	18	0
August	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
Total	0	14	0	189	204	2048	0	5	5	283	157	13
Total	(28)	(21)	(14)	(182)	(154)	(672)	(21)	(14)	(7)	(63)	(587)	(7)
^[]Count (n)*

Table 6 examines the on-hand quantity average based on the product category over time. This table indicates that some items are being held that are not necessarily being sold (Table 5). Clearly, a number of pharmacy products are being held, but as Table 5 indicates, those pharmacy items are yet to be sold.

Table 6: On-Hand Quantity (Avg) based on the Product Category^[*]

	Health and Beauty Aids	Office Supplies	Electronics	Electronic Accessories	Toys	Sporting Goods	Automotive	Hardware	Seasonal Hardware	Janitorial	Housewares	Small Appliances
February	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
February	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
March	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	248.2
March	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
April	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
April	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
May	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
May	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
June	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
June	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
July	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
July	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
August	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
August	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
Total Avg	63	18	20.15	21.28	38.56	23.85	15.86	22.27	6.5	25	34	24.82
Total Avg	(35)	(56)	(518)	(476)	(112)	(140)	(98)	(154)	(14)	(7)	(70)	(154)
^[]Count (n)*

	Horticulture	Furniture	Seasonal	Domestics	Computer Soft-ware	Office Electrics	Pharmacy OTC	Luggage	Cookies / Crackers	Video Games	Jewelry	Books
February	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
February	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
March	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
March	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
April	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
April	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
May	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
June	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
June	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
July	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
July	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
August	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
August	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
Total Avg	31	7	30	17.08	20.82	16.88	165.33	15.5	156	21.67	2.72	58
Total Avg	(28)	(21)	(14)	(182)	(154)	(672)	(21)	(14)	(7)	(63)	(587)	(7)
^[]Count (n)*

Table 7 examines the number of orders being made based on product category. Here again, more orders are being made for products that have not necessarily been sold (Table 5). Jewelry, computer software, domestics have the greatest number of orders generated.

Table 7: Order Count (where order>0) based on the Product Category^[*]


	Health and Beauty Aids	Office Supplies	Electronics	Electronic Accessories	Toys	Sporting Goods	Automotive	Hardware	Seasonal Hardware	Janitorial	House-wares	Small Appliances
February	1	3	7	6	2	3	4	1	1	1	10	1
February	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
March	1	3	7	6	2	3	4	1	1	1	10	1
March	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
April	1	3	7	6	2	3	4	1	1	1	10	1
April	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
May	1	3	7	6	2	3	4	1	1	1	10	1
May	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
June	1	3	7	6	2	3	4	1	1	1	10	1
June	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
July	1	3	7	6	2	3	4	1	1	1	10	1
July	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
August	1	3	7	6	2	3	4	1	1	1	10	1
August	(5)	(8)	(74)	(68)	(16)	(20)	(14)	(22)	(2)	(1)	(10)	(22)
Total Avg	7	21	49	42	14	21	98	7	7	7	70	7
Total Avg	(35)	(56)	(518)	(476)	(112)	(140)	(98)	(154)	(14)	(7)	(70)	(154)
^[]Count (n)*

	Horticulture	Furniture	Seasonal	Domestics	Computer Software	Office Electrics	Pharmacy OTC	Luggage	Cookies/Crackers	Video Games	Jewelry	Books
February	4	3	2	26	22	13	3	2	1	3	83	1
February	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(83)	(1)
March	4	3	2	26	22	13	3	2	1	3	84	1
March	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
April	4	3	2	26	22	13	3	2	1	3	84	1
	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
May	4	3	2	26	22	13	3	2	1	3	84	1
May	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
June	4	3	2	26	22	13	3	2	1	3	84	1
June	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
July	4	3	2	26	22	13	3	2	1	3	84	1
	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
August	4	3	2	26	22	13	3	2	1	3	84	1
August	(4)	(3)	(2)	(26)	(22)	(96)	(3)	(2)	(1)	(9)	(84)	(1)
Total Avg	28	21	14	182	154	91	21	14	7	21	587	7
Total Avg	(28)	(21)	(14)	(182)	(154)	(672)	(21)	(14)	(7)	(63)	(587)	(7)
^[]Count (n)*

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