E-tailer's Inventory Location and Pricing With Strategic Consumers

• 成果类型: Article
• 署名作者: Chen, Yuxin; Li, Meng; Liang, Chao
• 署名单位: New York University; NYU Shanghai; University of Houston System; University of Houston; China Europe International Business School
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1177/10591478241274644
• 发表日期: 2025
• 页码: 30-44
• 关键词: Pricing; Inventory Storage Location; Demand uncertainty

摘要

This research examines how strategic consumer behavior influences e-tailers' decisions on inventory storage locations, pricing strategies, and inventory levels. The e-tailer opts for either a single central warehouse, which has lower holding but higher shipping costs due to its distance from consumers, or a mix of central and proximal local warehouses, which reduces shipping costs but incurs higher holding costs. We find that local warehousing prompts consumers to delay purchases in hopes of discounts, compelling e-tailers to lower prices to encourage early buying. Consequently, the firm may not utilize the local warehouse, even when it comes at no cost. Intriguingly, we find that increased local storage expenses or diminished product durability could paradoxically elevate firm profits. Our numerical analysis highlights the benefits of strategically distributing inventory across both central and local warehouses, especially under conditions of reduced demand uncertainty. Moreover, we establish that our key insights persist in the case of multiple local warehouses.