Integrated Simulation and Regression Framework for Delivery Management in E-commerce
Integrated Simulation and Regression Framework for Delivery Management in E-commerce

Summary/Abstract: Problems with commodities and the delivery of products have accompanied trade since its beginnings. Itis not possible to stock up, as there will always be limitations – of storage space, resources or financialresources. The e-commerce sector in the age of Industry 4.0 era faces its own specific problems:on the one hand, customers want customised products fast, on the other hand, shops have to lowerstorage costs and efficiently manage the supply chain. The paper proposes a framework of simulationmodelling with a regression module for shops operating in the e-commerce sector; it is a tool fordecision-makers that simulates the ordering and delivering process with a varying number of products,suppliers and a varying demand. The aim is to define a novel approach where computer simulation andregression models are integrated and combined in order to provide decision-makers with informationabout the average delivery time to customers ordering online products and possible delays. The resultsof analyses show 90% reliability of the regression model in terms of changes in the average deliverytime depending on number of products sold by the shop, demand fluctuation, the number of distributorsand the average delivery time of products from the distributor.

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