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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.
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.
Replenishment Option | ||
---|---|---|
Organization | Vendor | |
On-hand quantity | 19.95 | 7.86 |
(3458) | (147) | |
On-order quantity | 1.80 | 0.00 |
(3458) | (147) | |
Total units sold | 2.18 | 0.34 |
(3436) | (145) | |
[*]Mean value (n) |
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.
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.
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) |
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) |
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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(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 |
(28) | (21) | (14) | (182) | (154) | (672) | (21) | (14) | (7) | (63) | (587) | (7) | |
[*]Count (n) |
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