The Role of E-Retailers in Modern Manufacturing: Insights from Agent-Based Simulations

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Abstract This study investigates the impact of e-retailers on manufacturers' production and sales dynamics through agent-based modeling and simulation. While traditional retailers have long dominated the retail sector, Industry 4.0 technologies and e-commerce platforms have introduced new dynamics. By comparing manufacturers connected to e-retailers with those linked to traditional retailers, this study highlights the effects on inventory and customer satisfaction in response to changing market conditions and evolving customer preferences, incorporating satisficing behavior. The experiments were conducted under various conditions and random parameter distributions. Manufacturers connected to e-retailers can access more information; however, our model indicates that the accuracy of their sales forecasting methods is crucial. The highest growth was observed in high-quality manufacturers using superior prediction methods and connected to e-retailers, especially when supply exceeded demand. The system became unpredictable when supply and demand were nearly equal. The findings emphasize the importance of e-retailers in reducing unsatisfied customers and inventory levels, alongside the critical role of accurate prediction methods. The model demonstrates the significance of using agent-based models in modern times, as they can capture the complexity of the system and emergent behaviors.
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The Role of E-Retailers in Modern Manufacturing: Insights from Agent-Based Simulations | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Role of E-Retailers in Modern Manufacturing: Insights from Agent-Based Simulations Zahra Asadollahi Sohi, Hossein Raghfar This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5400278/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study investigates the impact of e-retailers on manufacturers' production and sales dynamics through agent-based modeling and simulation. While traditional retailers have long dominated the retail sector, Industry 4.0 technologies and e-commerce platforms have introduced new dynamics. By comparing manufacturers connected to e-retailers with those linked to traditional retailers, this study highlights the effects on inventory and customer satisfaction in response to changing market conditions and evolving customer preferences, incorporating satisficing behavior. The experiments were conducted under various conditions and random parameter distributions. Manufacturers connected to e-retailers can access more information; however, our model indicates that the accuracy of their sales forecasting methods is crucial. The highest growth was observed in high-quality manufacturers using superior prediction methods and connected to e-retailers, especially when supply exceeded demand. The system became unpredictable when supply and demand were nearly equal. The findings emphasize the importance of e-retailers in reducing unsatisfied customers and inventory levels, alongside the critical role of accurate prediction methods. The model demonstrates the significance of using agent-based models in modern times, as they can capture the complexity of the system and emergent behaviors. Industrial Engineering Management Other Economics E-retailers Agent-based modeling Inventory management Sales forecasting Manufacturing dynamics Customer satisfaction Full Text Additional Declarations The authors declare no competing interests. Supplementary Files Appendix.docx Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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