Inventory Optimization in E-Commerce: A Dual-Sourcing Collaborative Replenishment Model Under Demand Uncertainty

Purpose: This study aims to develop a cost-efficient inventory optimization model for e-commerce enterprises facing uncertain demand. The objective is to enhance operational responsiveness and service levels while minimizing total inventory-related costs through a dual-sourcing replenishment strategy that combines lean and flexible suppliers. Design/methodology/approach: A dynamic collaborative replenishment model is formulated using optimization theory and stochastic demand modeling. The model integrates dual sourcing and service-level constraints and is solved through nonlinear programming via a bounded objective method. Matrix Laboratory (MATLAB) is used for implementation and simulation, with a real-world case study from a Chinese e-commerce firm to validate the model. Findings: Simulation results demonstrate that the proposed model significantly reduces total inventory costs-by up to 36%-compared to traditional single-source or fixed-cycle replenishment strategies. The model also improves inventory responsiveness and service reliability, effectively balancing cost control and customer service in volatile demand environments. Practical implications: This model provides a practical decision-support tool for inventory managers in e-commerce. By dynamically allocating orders between lean and flexible suppliers based on real-time demand and service level targets, firms can reduce holding and stockout costs while improving overall supply chain performance, particularly in fast-paced, digitally driven markets.

Authors

Institutions

Publication Details

Journal
Contemporary Mathematics
Published
2025-09-28
DOI
https://doi.org/10.37256/cm.6520257779
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Inventory Optimization in E-Commerce: A Dual-Sourcing Collaborative Replenishment Model Under Demand Uncertainty

Fatima Sayeeda Ahmad, Muhammad Hamza Naseem, Zongyi Xing
Contemporary Mathematics
Supply Chain and Inventory Management
article

Inventory Optimization in E-Commerce: A Dual-Sourcing Collaborative Replenishment Model Under Demand Uncertainty

Fatima Sayeeda Ahmad, Muhammad Hamza Naseem, Zongyi Xing
article en

Abstract

Purpose: This study aims to develop a cost-efficient inventory optimization model for e-commerce enterprises facing uncertain demand. The objective is to enhance operational responsiveness and service levels while minimizing total inventory-related costs through a dual-sourcing replenishment strategy that combines lean and flexible suppliers. Design/methodology/approach: A dynamic collaborative replenishment model is formulated using optimization theory and stochastic demand modeling. The model integrates dual sourcing and service-level constraints and is solved through nonlinear programming via a bounded objective method. Matrix Laboratory (MATLAB) is used for implementation and simulation, with a real-world case study from a Chinese e-commerce firm to validate the model. Findings: Simulation results demonstrate that the proposed model significantly reduces total inventory costs-by up to 36%-compared to traditional single-source or fixed-cycle replenishment strategies. The model also improves inventory responsiveness and service reliability, effectively balancing cost control and customer service in volatile demand environments. Practical implications: This model provides a practical decision-support tool for inventory managers in e-commerce. By dynamically allocating orders between lean and flexible suppliers based on real-time demand and service level targets, firms can reduce holding and stockout costs while improving overall supply chain performance, particularly in fast-paced, digitally driven markets.

Contemporary Mathematics
University of Nottingham Ningbo China (CN), Guizhou University (CN), Government College Women University Faisalabad (PK)
Openalex Percentile: Top 57%
Supply Chain and Inventory Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Inventory Optimization in E-Commerce: A Dual-Sourcing Collaborative Replenishment Model Under Demand Uncertainty — Fatima Sayeeda Ahmad, Muhammad Hamza Naseem, et al. · Contemporary Mathematics (2025) | TGRS Research Map | TGRS