Internet SystemTraditional System

Centre

Distribution Centre

Retail Outlet

Customers

• Retailers require wide

• Aisle height as high as fork

• Aid of lasers to eliminate small imbalances

• Aisles are narrow

• Shorter than fork

• Packing is for individual items

CostMinimizer

Professional Shopper

Transportation Sharing

DedicatedSystems

Integrated

Segregated

Bulk Single-Item

Internet Shipping

Traditional/Internet Inventory

Walmart & Macy’s

JC Penny & 7-Eleven

Grolier & Fingerhut

Amazon & Flipkart

Inventory & Shipping Strategies for Combined Internet/Traditional Retailers