Operations Research, Systems Engineering and Industrial Engineering Commons^™

Drop-Shipping At A Promotional Products Distributor, Ramanan Veeraragavan

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During the current economic times, companies are trying to reduce costs by incorporating new strategies into their business plan. Supply chain, in particular the distribution network is one area where an improvement can bring in a healthy return on investment to a company. Drop-shipping is a distribution strategy whereby customer orders are fulfilled by directly delivering products from manufacturer's facility, instead of storing these products at the warehouse. Drop-shipping helps in reducing inventory and material handling costs at the warehouse, but may increase transportation costs due to frequent shipments. This research was motivated by the current operations at a promotional …