B2C E-commerce for Home Appliance in The Brazilian Market: A Cost Efficiency Investigation through a DEA-OCT Model
DOI:
https://doi.org/10.18568/internext.v15i2.557Keywords:
E-commerce, Retail, Data Envelopment Analysis (DEA), Optimal Control Theory (OCT), Inventory ManagementAbstract
Objective: to investigate the cost efficiency of inventory management for publicly home appliance retail companies in the Brazilian market that operate, among other channels, with B2C (Business-to-Costumer) and discuss the possible impacts of e-commerce on inventory management.
Method: the first step, construction of a descriptive summary of Magazine Luiza and seven other competitors; the second step, analysis of the optimal cost efficiency of companies' inventory management, through an integrated and dynamic model of Data Envelopment Analysis (DEA) and Optimal Control Theory (OCT). Amounts declared in the Quarterly Financial Statements between the fourth quarter of 2010 and the second quarter of 2018 were considered.
Main Results: the discovery of best practices and the fact that, despite its extraordinary appreciation, Magazine Luiza was not a reference in inventory management and its costs during the analyzed period as a whole.
Relevance/Originality: this article is an initial step to address the lack of studies on e-commerce for emerging markets and inventory management and its costs for e-commerce.
Methodological Contributions: the proposition of a methodology that can be used by other researchers to assess the cost efficiency of inventory management and the impact of e-commerce, highlighting best practices.
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References
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Giuffrida, M., Mangiaracina, R., Perego, A., & Tumino, A. (2017). Cross-border B2C e-commerce to Greater China and the role of logistics: a literature review. International Journal of Physical Distribution & Logistics Management, 47(9), 772–795. https://doi.org/10.1108/IJPDLM-08-2016-0241
Hausman, J. A. (2015). Specification tests in econometrics. Applied Econometrics, 38(2), 112–134. https://doi.org/10.2307/1913827
Huang, H., Li, S., & Yu, Y. (2019). Evaluation of the allocation performance in a fashion retail chain using data envelopment analysis. The Journal of The Textile Institute, 110(6), 901–910. https://doi.org/10.1080/00405000.2018.1532376
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IPEA. (2020). Transformação de séries - macroeconômico. Retrieved March 5, 2020, from http://www.ipeadata.gov.br/iframe_transformacao.aspx?width=1474&height=701
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