Perfect Competition

Business done on the internet and in an electronic (vs a physical one) environment is called electronic business,
or shortly e-business. It provides unique advantages both to the supplier and to the customer.
Suppliers benefit from logistics advantages such as stock-keeping flexibilities. Without having the
obligation of physical presence in a wide range of geography, they can consolidate their inventory in
strategic and central locations and cater to their customers from those spots. Related cost advantages make
them more competitive in the market.
Customers have the big advantage of having access to all available alternatives quickly. They can compare
different qualities, prices, payment and delivery conditions, product/service guarantee conditions.
Making purchases online brings convenience, location flexibility, and time usage efficiency to its users. Price
advantages suppliers offer thanks to their reduced cost is another plus for customers.
Although it had a constant growth trend over the last 3 decades, Covid 19 has boosted the e-business
tremendously. Companies and organizations that will excel in e-business will be the most successful ones
in the future.
Project Outlines
In this project, you are asked to design an e-business model in the B2C field. Your company is a retailer with a
long history and several physical stores across different regions and cities of Turkey. This retailer is already
in e-business with its website and mobile application for the last 12 years but it wants to undergo a digital
transformation to adopt state-of-the-art Logistics 4.0 concepts.
The retailer has analyzed the Big Data achieved in the last 12 years and concluded that especially milk-based products constituted the largest portion of its revenue and an improvement in the delivery of this
product group would contribute to its business success.
Your company’s business slogan under its logo is ‘’sustainable customer satisfaction’’ and the value
the proposition to its customers is ‘’In your fridge within an hour!”
Following product items have been assigned to the project team you are leading:
1. Milk
2. Butter
3. Yoghurt
4. Cheese
These products have relatively much shorter ‘’best before’’ dates compared to other foodstuff. Therefore
in order to make sure that you achieve
– avoiding the excess amount of inventory in your warehouse
– 99.8 % fill rate (FR) average in deliveries
targets at the same time, you are asked to design your warehouse and logistics systems. The task list is as
follows :
– Suggest a sensor system to keep stock level under constant check-in each warehouse
– Design an information-sharing system among warehouses in which they communicate on the intranet
system to keep stock level balanced across all depots
– Define the Last-Mile Delivery problem. Especially for remote spots of the country suggest a Route
Optimization strategy. Bring alternative solutions (motor courier delivery, cooperation with a
petrol station, -grab your order- kind of new and innovative solutions)
– Suggest an efficient tracing/tracking system to keep control over your delivery operations
– Define the Big Data concept. Suggest an approach to analyze the data you collect from purchases on
your web site and mobile applications
– Define Artificial Intelligence (AI) and suggest an AI system to make accurate forecasts
You need to return the Projects on the ITS Learning system, in Word format. The project should have a minimum
1500 words
Deadline for Submission
The deadline for the submission of the Project is 18.01.2021, Monday, 18.00.
I wish you success in your final exam.
Best regards,
Selim Zeydanl. For more information on Perfect Competition check on this:

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