S.M.T. Fatemi Ghomi and B. Asgarian
Finding a rational approach to maintain a freshness of foods and perishable goods and saving their intrinsic attributes during a distribution of these products is one of the main…
Abstract
Purpose
Finding a rational approach to maintain a freshness of foods and perishable goods and saving their intrinsic attributes during a distribution of these products is one of the main issues for distribution and logistics companies. This paper aims to provide a framework for distribution of perishable goods which can be applied for real life situations.
Design/methodology/approach
This paper proposes a novel mathematical model for transportation inventory location routing problem. In addition, the paper addresses the impact of perishable goods age on the demand of final customers. The model is optimally solved for small- and medium-scale problems. Moreover, regarding to NP-hard nature of the proposed model, two simple and one hybrid metaheuristic algorithms are developed to cope with the complexity of problem in large scale problems.
Findings
Numerical examples with different scenarios and sensitivity analysis are conducted to investigate the performance of proposed algorithms and impacts of important parameters on optimal solutions. The results show the acceptable performance of proposed algorithms.
Originality/value
The authors formulate a novel mathematical model which can be applicable in perishable goods distribution systems In this regard, the authors consider lost sale which is proportional to age of products. A new hybrid approach is applied to tackle the problem and the results show the rational performance of the algorithm.
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Thomas Thron, Gábor Nagy and Niaz Wassan
This paper sets out to investigate the impact of various supply chain advancements within a perishable goods environment.
Abstract
Purpose
This paper sets out to investigate the impact of various supply chain advancements within a perishable goods environment.
Design/methodology/approach
The study uses discrete event simulation to evaluate diverse adjustments within the distribution framework of a food manufacturer and their major customers. Analysed aspects include level of safety inventory held, inventory issuing, replenishment and through‐put policies and increased demand transparency due to collaboration between manufacturer and various retailers. The importance and the impact of these factors are investigated using a wide variety of performance measures.
Findings
Several promising practice designs are generated and recommended for implementation to improve the experienced shortcomings. Engaging in collaborative replenishment is emphasized in particular even in cases of limited scope. The analysis further reveals the importance of advanced inventory dispatch policies.
Research limitations/implications
The research focused on the delivery framework of a particular manufacturer and the chosen products. Hence, research findings may differ and need to be modified before drawing conclusions for different products, companies or industries.
Originality/value
Evaluating the impact of various stages of collaboration within a perishable product supply chain environment has not been addressed much within prior SCM research. The analysis tackles a variety of issues that specifically arise within a perishable goods framework and aims to support practitioners by identifying possible pitfalls and areas of improvement.
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Devon DelVecchio, Timothy B. Heath and Max Chauvin
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive…
Abstract
Purpose
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products.
Design/methodology/approach
The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products.
Findings
The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods.
Originality/value
This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.
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Emmanuel D. Adamides, George Papachristos and Nikolaos Pomonis
The purpose of this paper is to show how a critical realist paradigmatic stance and its associated research methodology can contribute to supply‐chain research by providing…
Abstract
Purpose
The purpose of this paper is to show how a critical realist paradigmatic stance and its associated research methodology can contribute to supply‐chain research by providing explanations for specific supply‐chain‐ and logistics‐related dynamic phenomena.
Design/methodology/approach
Initially, the case for a critical realist research paradigm is made, and then a retroductive pluralistic research methodology is used for demonstrating its application. Starting from an observation in the distribution part of a seasonal goods supply chain, ethnographic‐like field research suggested deeper social structures as being responsible for the events observed. The operation of event‐generating mechanisms related to these structures was matched to existing behavioural theories using dynamic modelling and simulation.
Findings
The adoption of the critical realist perspective and its pluralistic research methodology can bring into surface the root causes of, and explain, complex supply chain phenomena. In the particular case presented, it provided an explanation for the inventories observed in a supply chain of perishable seasonal goods as results of two underlying interacting mechanisms: one related to the promotions bias of the manufacturer, and one related to the risk management attitude of resellers.
Research limitations/implications
As far as underpinning philosophy and research methodology are concerned, the research presented is globally significant and valid. Nevertheless, any supply‐chain management policies derived in the demonstrative case as results of the explanation may be significant only to specific industries and geo‐historical contexts.
Practical implications
Results obtained by employing the critical realist perspective may be used in managers' education for developing intellectual frameworks to better understand the causes of complex supply chain phenomena. Of the same importance to practitioners is the methodology and inference process used for explaining real abnormal situations and intervening accordingly.
Originality/value
The paper shows how a critical realist perspective and its associated methodology can be used for extracting/researching deeper mechanisms responsible for observed behaviours in supply chains. Such an approach is in the opposite direction with respect to the hypothetico‐deductive approaches that dominate supply chain research. The paper demonstrates the adoption of the critical realist perspective in supply chain research using a real case.
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Milad Bakhshi, Kambiz Heidarzadeh Hanzaee and Mirahmad Amirshahi
Shopping motivations are considered the primary stimuli for shoppers in the prepurchase stage of the customer journey. This study contributes to the understanding of how cultural…
Abstract
Purpose
Shopping motivations are considered the primary stimuli for shoppers in the prepurchase stage of the customer journey. This study contributes to the understanding of how cultural factors affect shopping motivation. This study aims to understand the effect of cultural factors on shopping motivations in Eastern culture with Islam religion.
Design/methodology/approach
This study is based on the approach of phenomenology, and multiple methods were performed to interpret the phenomenon of shopping motivations. To this aim, 16 observations and 18 in-depth interviews were performed for data collection, and after that, data interpretation was done.
Findings
In this study, the motivations fall into product-related and hedonic motivations which are related to shopper psychology, while environmental motivations are culturally dependent. The influence of cultural factors on the individual concept of shopping motivations was identified in this study. Nine subthemes including product selection, product quality, functional, in-store service, convenience, store environment, value shopping, self-gratifications and role-playing were identified in the categories of product-related, environmental and hedonic motivations.
Practical implications
In non-Western countries, the store environment profoundly influences shoppers’ experience. This study clearly illustrates relationships between theory and practice in grocery shopping motivations in a non-Western context. Retailers who are active in eastern Islamic countries should pay attention to the fact that cultural and contextual factors play a significant impact on the shopping motivation and behavior of these shoppers.
Originality/value
In this study, shopping motivations are not fixed in different societies, and cultural and contextual factors play a significant impact in this regard. In other words, shopping motivations are fluid, and cultural factors play a significant role in their formation. This study makes two important contributions: First, cultural motivations are prominent among Muslim shoppers. Among these motivations, shopping environment motivations, including relationships with others and cleanliness, and staff behavior are very significant. These motivations are highly influenced by the culture of the context and we discover which motivations are not related to psychology alone and that the context has a significant influence on their formation. Second, hedonic motivations are also highlighted in the purchase of utilitarian products. In addition to direct effects, such as Islamic regulations on halal foods, Muslims’ religious tenets also have significant indirect effects on their behaviors and motivations.
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Jeffrey G. Miller, Peter Gilmour and Roland Van Dierdonck
It is now quite widely accepted that there are benefits to be derived from an integrated management perspective of the flows of purchased parts, components and raw materials from…
Abstract
It is now quite widely accepted that there are benefits to be derived from an integrated management perspective of the flows of purchased parts, components and raw materials from suppliers into and through manufacturing facilities, and of finished products through distribution channels to final consumers. There is, however, far less agreement on how an organisation should marshal its resources to actually derive these benefits. Many options exist: the use of computer‐based systems and management information support; the use of analytical tools to help evaluate decision alternatives adjusting the materials and logistics environment to facilitate the exchange between the organisation and its suppliers and the organisation and its customers; establishing more efficient communication networks and coordination methods for interfunctional information exchange; altering the organisational structure to facilitate the administration of materials functions.
Viktor Hugo Elliot, Christiaan De Goeij, Luca Mattia Gelsomino and Johan Woxenius
Logistics service providers (LSPs) have unique resources and capabilities that position them to deliver supply chain finance (SCF) solutions. The study aims to discuss and…
Abstract
Purpose
Logistics service providers (LSPs) have unique resources and capabilities that position them to deliver supply chain finance (SCF) solutions. The study aims to discuss and illustrate the necessary resources and process of value creation and capture of LSPs, potentially offering SCF solutions.
Design/methodology/approach
Relying on a theoretical framework, combining a resource-based view (RBV) with the literature on SCF, the authors apply an abductive case study methodology, including 11 interviews with representatives from four LSPs.
Findings
The main findings are as follow: (1) although an LSP has sufficient resources for value-added SCF solutions, it may not capture enough value to motivate realising them; (2) an LSP considering offering SCF should account for the interaction between its resources and cargo transit times, risk and regulatory restrictions and (3) future studies should distinguish between financing the logistics services and the moved products.
Research limitations/implications
The authors contribute to the growing field of SCF research by analysing motives and barriers for LSPs to offer SCF service to their customers. Because none of our case companies decided to move beyond experimentation further research is needed on the resources and capabilities needed for LSPs to successfully venture into SCF.
Practical implications
The study provides LSPs with clear indications of the difficulties involved when contemplating a move into SCF solutions and discusses the potential value of offering such services.
Originality/value
Despite evidence of LSPs engaging in SCF in various industries, academic contributions do not go beyond operational conditions or quantification of benefits. The authors add evidence on how LSPs are currently evaluating the prominence of adding SCF to their value offerings, including a new perspective on resources, value generation and capture mechanisms.
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Tony Tollington and Philipp Wachter
Considers some of the assumptions underpinning the utilisation of activity‐based costing (ABC) and throughput accounting (TA) systems in relation to Internet retail shopping. It…
Abstract
Considers some of the assumptions underpinning the utilisation of activity‐based costing (ABC) and throughput accounting (TA) systems in relation to Internet retail shopping. It shows that there is a role for both ABC and TA systems depending on where managerial attention is directed towards supply chain efficiency and/or cost control. Internet retail shopping was chosen because it is a new niche market that favours the maximisation of retail inventory “throughput” while, at the same time, favouring “ABC” because of the substantial fixed overhead costs incurred by many of the major supermarket stores.
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Yohan Lee, Alan Morse, Moonsup Hyun, Stephen L. Shapiro and Joris Drayer
Pricing studies have largely focused on sellers' pricing strategies and price determinants. To expand earlier work on sellers' pricing decisions, this study considers time as a…
Abstract
Purpose
Pricing studies have largely focused on sellers' pricing strategies and price determinants. To expand earlier work on sellers' pricing decisions, this study considers time as a major factor driving sellers' ticket prices in the secondary market. Specifically, because most secondary market transactions occur in the last moments before a game, this study considers how resellers adjust ticket prices within a few days prior to a game day including an actual game day.
Design/methodology/approach
To examine the impact of time on secondary market ticket prices for Major League Baseball (MLB), ticket prices were collected from StubHub (one of the largest secondary ticket markets) four times per game: from 3 days to 1 day prior to a game day and on the actual game day. Additionally, 10 control variables were obtained from previous research on price determinants (N = 19,155). A multiple regression model was created based on the extant literature regarding secondary market ticket prices.
Findings
Results indicate the number of days before a game negatively influenced ticket prices: resellers decreased ticket prices consistently during the last few days prior to a game's first inning. Specifically, secondary market ticket prices decreased relatively dramatically on an actual game day. Time had no significant effects on ticket prices 2 days prior to a game day. In addition to the role of time, league affiliation and the number of all-star players were identified as key price determinants in the secondary market. Moreover, changes in weather forecasts and the home team starting pitcher's ERA played significant roles in price changes.
Research limitations/implications
Despite containing a relatively high number of data observations compared with prior pricing studies, this study's findings were limited to certain teams. Additionally, as only MLB secondary market ticket pricing was considered, different outcomes and implications may apply in other major sport ticket markets (e.g. NBA, NFL, NHL and MLS) featuring distinct league structures, policies and demand.
Practical implications
This study offers practical guidance for sellers' pricing decisions. Most secondary ticket market sellers lowered their ticket prices relatively dramatically on an actual game day. Reducing ticket prices prior to a game day can lead to greater chances to avoid unsold tickets that compromise revenue management. This study's results also afford professional sport organizations and secondary ticket market consumers a clearer understanding of the factors resellers consider when setting ticket prices.
Originality/value
Although previous studies have uncovered essential elements influencing ticket prices and consumer demand in the secondary ticket market, little work has examined how time affects sellers' pricing decisions within a few days prior to a game day. Little is known about the elements that significantly influence sellers’ decisions to adjust (i.e. increase or decrease) ticket prices in the secondary market as well. This topic deserves ongoing attention, as new outcomes can supplement previous studies' findings due to changing market environments.