This paper addresses the optimization of dealer replenishment decisions
in planning their assortment for high-value substitutable products so as
to maximize product availability of dealers in hyperconnected retail
networks. To achieve this, we formalize the problem as a discrete
optimization model, and provide exploratory empirical results based on a
Monte Carlo simulation for a case study of a leading manufacturer of
recreational vehicles. Then, we show that the proposed model achieved
sales increase by 30% in a given network while keeping the same
inventory level as the current business model. Emphasizing availability
rather than inventory, we present the contribution of this paper in
assortment planning, inventory transshipment, customers’ substitution
behavior, and product availability. We conclude the paper with a call
for further research under Physical Internet-enabled settings such as
aiming universal hyperconnectivity in transportation, distribution,
production and supply.