Providing a System Dynamics Model to Evaluate Time, Cost, and Customer Satisfaction in Omni-Channel Distribution: A Case Study

The shopping experience in Omni-channel distributions is influenced by the physical environment of the buyer, delivery time, and the cost of production to distribution of the goods which have a significant impact on customer loyalty and customer satisfaction. This study presents a system dynamics approach to identify the variables affecting the three aspects of customer satisfaction, cost, and delivery time, as well as the relationships among these variables in omni-channel distribution. By reviewing previous studies and expert opinions identifying important variables, followed by generating different scenarios in the Vensim software, the optimal values of the important variables are estimated. It is observed that by approaching the values of the fourth scenario – increase in the amount of market competitiveness indices, customer referral rate, marketing costs, technology etc. and decrease in the maintenance costs – the highest customer satisfaction and the lowest cost and delivery time can be achieved.