The distribution strategy selection for an e-tailer using a hybrid DANP VIKOR MCDM model

Abstract

Purpose \n \n \n \n \nThe purpose of this paper is to apply a multi-criteria decision-making (MCDM) framework to evaluate distribution strategies for an e-tailer. An application of MCDM method, the hybrid DANP–VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) model, is used for e-tailers’ distribution strategy evaluation. The choice of distribution strategies under various dimensions is evaluated. \n \n \n \n \nDesign/methodology/approach \n \n \n \n \nThe authors used a hybrid MCDM model to solve the decision-making framework, which combines Decision-Making Trial and Evaluation Laboratory (DEMATEL), DEMATEL-based analytic network process and VIKOR method. Data were collected from the experts (e-tail manager, logistics manager, operations manager and distribution center (DC) manager) using two questionnaires, first for the influential relationship among the criteria and dimensions and second for a performance rating of each alternative (distribution strategies) against each criterion. \n \n \n \n \nFindings \n \n \n \n \nDANP with VIKOR method prioritizes the distribution strategies in the following order: DC shipment, drop shipment, click and collect, store shipment and click and reserve. Performance gap was calculated based on the VIKOR method to provide distribution strategies to an e-tailer under different situations. The authors infer that in developing country, product characteristics and transportation have a major influence on deciding the distribution strategy. \n \n \n \n \nPractical implications \n \n \n \n \nDecision-making framework will provide e-tail mangers a knowledge-based understanding to select the distribution strategy under the different situations related to the performance, product, e-tailer and external characteristics for smooth order fulfillment process. The insights developed by this research provide a framework for rational decision making in distribution strategy selection in e-business. \n \n \n \n \nOriginality/value \n \n \n \n \nThis is the first kind of a study which offers a decision framework for e-tail managers on how to choose distribution strategies under different situations which are related to the performance, product, e-tailer and external characteristics.