Abstract Book of the 8th International Conference on Research in Business, Management and Finance
Year: 2025
[PDF]
Disruptions in the Distribution of Wine in a Multi-Echelon Inventory Control System During the Covid Pandemic
Faizul Huq, Vernon Jones, Douglas Hensler
ABSTRACT:
The Covid-19 Pandemic of 2019-2022 disrupted distribution of goods throughout Supply Chains in every industry. The case of the Wine industry is however unique given that the lower priced, for daily consumption wine, is a perishable item with a finite shelf life, and a large number of the small wineries sell their wines through their tasting rooms that were in a lockdown for 2 years, between 2020 and 2022. This led to a large number of small wineries going out of business during the pandemic. The distribution of wine in the United States is dominated by three main distributors, E.J.Gallo, Constellation, and Wine Group. They control some 30% of the wine market. This study looks at the problems with distributions that were experienced by the big three during the pandemic and how they were addressed to mitigate the disruptive effects of Covid-19. A prescriptive Multi-Echelon Fill Rate Optimization Model is proposed.
Keywords: Covid-19, Wine Distribution, Supply Chain Disruptions, Multi-Echelon Fill Rate Optimization