Matching Supply With Demand For Online Retailing

We consider an online retailer selling multiple products over a multi-period setting. At the start of each period, the retailer replenishes her products from multiple suppliers. After receiving the products, the retailer allocates the inventory to different fulfillment centers. At the end of each period when the demands for the products from different zones are realized, the retailer fulfills them from different fulfillment centers. We formulate a robust optimization model to determine the replenishment and allocation decisions at the start of each period and the fulfillment decisions at the end of the period. Our approach can handle large-scale problem instances with good quality solutions.