A Decision-Making Framework for Inventory Positioning in an Omnichannel Business Environment

Literature Review

Technological advancements have facilitated the development of omnichannel businesses which have emerged as state-of-the-art models enjoying popularity among both, retailers and customers (Raynor and Christensen, 2003). Omnichannel denotes a type of business that integrates and uses multiple channels to interact with consumers and fulfill their orders. Verhoef et al. (2015) defined effective omnichannel management as the flexible and cooperative management of a variety of channels and customer touchpoints. As such, customers can access real time information about product offering and their orders through the company’s website. The ‘empowered customers’ require a consistent shopping experience across the retail channels – online, physical stores or both. They can order online, pick up later in-store, or they can choose to have products delivered from nearby stores.