scholarly journals Pre-sale ordering strategy based on the new retail context considering bounded consumer rationality

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Yu Liu ◽  
Chun-xiang Guo ◽  
Hong Zhou ◽  
Xin-yi Chen
Keyword(s):  
Reference Price ◽  
Value Added ◽  
Purchase Behavior ◽  
Optimal Order ◽  
Order Quantity ◽  
The Public ◽  
Optimal Value ◽  
Public Policymaker ◽  
Order Quantities ◽  
The Impact

<p style='text-indent:20px;'>The purpose of this paper is to study the impact of bounded consumer rationality on the order quantity and profitability of the seller in the advance period and the spot period in the context of the combination of new retail and pre-sale. In this paper, we develop a seller order model in the context of the combination of new retail and pre-sale, with and without reference price dependence. Besides, the model considers the order cancellation and delayed purchase behavior of consumers. We then discuss the optimal profit and optimal order quantity under different conditions and the effect of different reference price dependence and value-added offline service on them. Our research shows that: First, the seller tends to set the deposit too low in pre-sales. Second, reference price dependence has different effects on order quantities in different periods. The seller should pay more attention to the impact of reference price dependence. Third, on the whole, consumer rationality benefits the seller. The seller, or the public policymaker, can benefit new retail businesses by increasing consumer rationality. Last, in the new retail context, an increase in offline service value-added, even if it increases total order quantity, is not always beneficial to the seller and may reduce profits. Therefore, the seller should weigh all factors to determine the optimal value-added offline services.</p>

An optimal order quantity with shelf-refill trips from backroom for efficient store operations

2016 ◽  
Vol 11 (4) ◽  
pp. 967-984
Author(s):  
Anukal Chiralaksanakul ◽  
Vatcharapol Sukhotu
Keyword(s):  
Supply Chain ◽  
Optimal Order ◽  
Type Model ◽  
Order Quantity ◽  
Shelf Space ◽  
Content Type ◽  
Cost Impact ◽  
Optimal Order Quantity ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of backroom storage in supply chain replenishment decision parameters: the order quantity based on the well-established economic order quantity (EOQ) model. Design/methodology/approach The authors develop an EOQ-type model to investigate the operational cost impact of the order quantity with backroom storage. Because of the discrete and discontinuous nature of the problem, a modification of an existing algorithm is applied to obtain an optimal order quantity. Numerical experiments derived from a leading retailer in Thailand are used to study the cost impact of the backroom. Findings The paper shows that the backroom storage will significantly affect the decision regarding the order quantity. If its effect is ignored, the cost increase can be as high as 30 per cent. The costs and operations of additional shelf-refill trips from the backroom must be carefully analyzed and included in the decisions of replenishment operations. Research limitations/implications The model is a simplified version of the actual replenishment process. Validation from a real-world setting should be used to confirm the results. There are many additional opportunities to further integrate other issues in this problem such as shelf space decisions or joint order quantity between vendors and retailers. Practical implications The insights gained from the model will help managers, both retailers and vendors or manufacturers, make better decisions with regard to the order quantity policy in the supply chain. Originality/value Problems with backroom storage have been qualitatively described in the literature in the past decade. This paper is an early attempt to develop a quantitative model to analytically study the cost impact of backroom on order quantity decisions.

scholarly journals Opportunity Loss Minimization and Newsvendor Behavior

2017 ◽  
Vol 2017 ◽  
pp. 1-11
Author(s):  
Xinsheng Xu ◽  
Hong Yan ◽  
Chi Kin Chan
Keyword(s):  
Conditional Value At Risk ◽  
Optimal Order ◽  
Market Demand ◽  
Newsvendor Model ◽  
Order Quantity ◽  
Loss Minimization ◽  
Decision Bias ◽  
Optimal Order Quantity ◽  
Opportunity Loss ◽  
Order Quantities

To study the decision bias in newsvendor behavior, this paper introduces an opportunity loss minimization criterion into the newsvendor model with backordering. We apply the Conditional Value-at-Risk (CVaR) measure to hedge against the potential risks from newsvendor’s order decision. We obtain the optimal order quantities for a newsvendor to minimize the expected opportunity loss and CVaR of opportunity loss. It is proven that the newsvendor’s optimal order quantity is related to the density function of market demand when the newsvendor exhibits risk-averse preference, which is inconsistent with the results in Schweitzer and Cachon (2000). The numerical example shows that the optimal order quantity that minimizes CVaR of opportunity loss is bigger than expected profit maximization (EPM) order quantity for high-profit products and smaller than EPM order quantity for low-profit products, which is different from the experimental results in Schweitzer and Cachon (2000). A sensitivity analysis of changing the operation parameters of the two optimal order quantities is discussed. Our results confirm that high return implies high risk, while low risk comes with low return. Based on the results, some managerial insights are suggested for the risk management of the newsvendor model with backordering.

scholarly journals Toward a Sustainable Model of Scientific Publishing

2021 ◽  
Vol 18 (01) ◽  
Author(s):  
Ravindra Palavalli-Nettimi
Keyword(s):  
Value Added ◽  
Academic Publishing ◽  
Scientific Publishing ◽  
Budget Cuts ◽  
Research Papers ◽  
Journal Publication ◽  
The Public ◽  
Funding Sources ◽  
Open Access Journals ◽  
The Impact

The current models of commercial publishing of scientific research costs universities, funding organizations, and governments billions of dollars in the form of annual subscriptions and publishing charges. Yet, many research papers are behind a paywall for the public and those unaffiliated to universities. Much of the research that is freely accessible to everyone requires authors to pay an unreasonable fee leading to inequalities in knowledge dissemination based on affordability. So, we need a sustainable model of scientific publishing that is beneficial to scientists, universities, and the public, especially in light of Covid-19 pandemic related budget cuts. Similar to commercial publishers, many scientific societies publish their own journals. Funding sources and universities should offer publishing grants or annual contributions to fund such societies’ open-access journals and thus support a sustainable publishing model wherein profits generated from academic publishing are invested back into the scientific community. Funding sources should also mandate publishing papers in society journals. To encourage that, hiring committees should place more importance on the article-level metrics than journal quality metrics such as the impact factor. The societies can use the publishing grants to cover journal publication costs and pay commercial publishers only for their value-added services such as manuscript handling and hosting the content online. The proposed publishing model will be sustainable and can strengthen scientific communities by supporting scientific society journals and making science more accessible.

scholarly journals Loss-Averse Retailer’s Optimal Ordering Policies for Perishable Products with Customer Returns

2014 ◽  
Vol 2014 ◽  
pp. 1-5 ◽  
Author(s):  
Xu Chen ◽  
Qian Zhou
Keyword(s):  
Optimal Order ◽  
Order Quantity ◽  
Policy Model ◽  
Decision Bias ◽  
Perishable Product ◽  
Ordering Policy ◽  
Optimal Order Quantity ◽  
Ordering Policies ◽  
Customer Returns ◽  
Order Quantities

We investigate the loss-averse retailer’s ordering policies for perishable product with customer returns. With the introduction of the segmental loss utility function, we depict the retailer’s loss aversion decision bias and establish the loss-averse retailer’s ordering policy model. We derive that the loss-averse retailer’s optimal order quantity with customer returns exists and is unique. By comparison, we obtain that both the risk-neutral and the loss-averse retailer’s optimal order quantities depend on the inventory holding cost and the marginal shortage cost. Through the sensitivity analysis, we also discuss the effect of loss-averse coefficient and the ratio of return on the loss-averse retailer’s optimal order quantity with customer returns.

scholarly journals Effective Investment to Reduce Setup Cost in a Mixture Inventory Model Involving Controllable Backorder Rate and Variable Lead Time with a Service Level Constraint

2012 ◽  
Vol 2012 ◽  
pp. 1-15 ◽  
Author(s):  
Hsien-Jen Lin
Keyword(s):  
Cost Reduction ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Optimal Order ◽  
Order Quantity ◽  
Setup Cost ◽  
System Parameters ◽  
Decision Variables ◽  
The Impact

This paper investigates the impact of setup cost reduction on an inventory policy for a continuous review mixture inventory model involving controllable backorder rate and variable lead time with a service level constraint, in which the order quantity, setup cost, and lead time are decision variables. Our objective is to develop an algorithm to determine the optimal order quantity, setup cost, and lead time simultaneously, so that the total expected annual cost incurred has a minimum value. Furthermore, four numerical examples are provided to illustrate the results, and the effects of system parameters are also included for decision making.

Study on Ordering Policy of Home Electronics Retailers under the Uncertain Quality Case in the Supply Chain

2011 ◽  
Vol 230-232 ◽  
pp. 486-490
Author(s):  
Xin Ma
Keyword(s):  
Optimal Order ◽  
Market Demand ◽  
Order Quantity ◽  
Analysis Method ◽  
Ordering Policy ◽  
Quantitative Analysis Method ◽  
Demand Volatility ◽  
Quality Of Supply ◽  
The Impact

Home electronics is short-cycle product with time-sensitive, the market demand volatility and large features and the unreliable environment of supply caused by a variety of uncertain factors. The value of the home electronics will become very low or even lost if it is over more than life cycle. The unreliability home electronics quality of supply is analyzed using quantitative analysis method, the impact of the maximum expected profit and the optimal order quantity of the home electronics retailer by defect rates and customers claim were also discussed in this paper.

scholarly journals The Order Quantity Decision of Newsboy Retailer with Financing

2014 ◽  
Vol 2 (4) ◽  
pp. 358-365
Author(s):  
Zhonghua Ma
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Stochastic Demand ◽  
Optimal Order ◽  
External Financing ◽  
Order Quantity ◽  
Revenue Model ◽  
Internal Financing ◽  
The Impact ◽  
Inventory Financing

AbstractWe analyze the retailer’s optimal order with capital constraint under stochastic demand. We consider the impact of external financing, that is inventory financing, and the internal financing, that is trade credit, on the order strategy of retailer separately. We establish revenue model of retailer and solve, and give revenue of retailer and supplier respectively. Finally, we give the impact of own funds on the retailer’s order quantity, retailer’s revenue, supplier’s revenue, as well as the impact on the overall revenue gains of the supply chain. And some analysis and statement are also given in the end.

Does public sector crowd out entrepreneurship? Evidence from the EU regions

2018 ◽  
Vol 24 (4) ◽  
pp. 866-881 ◽  
Author(s):  
Eva Zikou ◽  
Nikos Varsakelis ◽  
Aikaterini K. Sarri
Keyword(s):  
Public Sector ◽  
Economic Activity ◽  
Value Added ◽  
Regional Level ◽  
Regional Economic ◽  
Content Type ◽  
The Public ◽  
Entrepreneurial Activities ◽  
The Impact

Purpose The decision to engage in entrepreneurial activities is grounded in personal characteristics (motivation) and external environmental factors. One of the main external factors might be the structure of the regional economic activity. Does a high share of the public sector affect positively regional entrepreneurship or vice versa? Does the diversity in regional economic activity is conducive for entrepreneurial development or the regional comparative advantage as expressed by spatial economies of scale offering more entrepreneurial opportunities? Even though economic analysis has extensively examined the impact of the public sector size on the overall national economic activity (the crowding out effect), this impact has not been into scrutiny at regional level on microeconomic issues, such as the decision to engage in entrepreneurial activities. The authors further investigate the relation between diversity and entrepreneurship at regional level. The paper aims to discuss these issues. Design/methodology/approach This paper uses data for 264 NUTS II EU regions. The time span of the data set is 1999-2008. The paper applies panel data analysis to explain the cross-time cross-section variation of the dependent variable: the self-employment share in total employment at regional level. In order to measure the existence of crowding out from public sector to regional entrepreneurship, the authors use the share of regional public sector gross value added over total regional gross value added. The diversity of the regional economic activity is measured by the Herfindahl-Hirschman Concentration Index across sectors. Findings The findings of the paper show that there is a negative correlation between public sector share and regional entrepreneurship. Hence, as at national level, the increase in the role of the public sector in the regional economic system crowds out regional entrepreneurship. The second finding indicates that the impact of the diversity of the regional economic activity on regional entrepreneurship is inconclusive. Originality/value The originality of this paper is due to the fact that the role of the public sector on regional economic phenomena, such as entrepreneurship, is examined for the first time. Also, the investigation of the relationship between diversity (vs localization economies) and entrepreneurship is performed using data for the full sample of regions of the European Union. The findings of the paper have significant policy implications since they provide useful inputs for the design of the regional development policy. The reduction of the public sector at regional level may contribute in entrepreneurial development and finally in regional economic growth and prosperity. Besides, the regional industrial policy should focus on the exploitation of the spatially constraint economies of scope in the framework of the Triple Helix model.

scholarly journals Changes in the VAT Burden on Expenses of Selected Households in the Czech Republic (2007–2014)

2015 ◽  
Vol 6 (3) ◽  
pp. 189-202
Author(s):  
Regína Střílková ◽  
Jan Široký
Keyword(s):  
Czech Republic ◽  
Household Income ◽  
Value Added ◽  
Household Expenditures ◽  
The Czech Republic ◽  
The Public ◽  
Household Spending ◽  
Income Groups ◽  
Standard Rate ◽  
The Impact

Abstract The Czech Republic is a typical representative EU Member State which has several times changed VAT rates during the analyzed period 2007–2014 in an effort to consolidate the public budget. These changes are reflected in household spending, which were analyzed by means of the consumer basket, the composition of which is also undergoing changes. Another factor that has an impact on household expenditures is the transfer of commodities between the reduced and standard rate of VAT. The final factor used is the differentiation of households according to their income levels. The aim of this paper is to determine how these changes took effect in the Czech Republic in the share of consumption of commodities included in the standard and reduced VAT rates and in exempt transactions according to household income groups in the analyzed period 2007–2014 and to determine the impact of these changes on the tax burden on selected households by value added tax and confirmation of the assumption of VAT regressivity.

scholarly journals The impact of public procurement system on the development of competition in the economy in the light of empirical research

2017 ◽  
Vol 8 (1) ◽  
pp. 37 ◽  
Author(s):  
Arkadiusz Borowiec
Keyword(s):  
Public Procurement ◽  
Value Added ◽  
Point Of View ◽  
Access To Information ◽  
Economic Point ◽  
The Public ◽  
Fair Competition ◽  
Purposeful Sampling ◽  
Procurement System ◽  
The Impact

Research background: The purpose of the public procurement system in the market economy should be to ensure that the public sector entities conduct purchases which are optimal from the economic point of view, as well as to prevent favoring or discrimination of entities participating in public tenders. The Public Procurement Act mentions fair competition as one of the fundamental principles. Both contractors and contracting entities are subject to this principle. In practice, however, it is very often violated in connection with a number of phenomena resulting from imperfections of the aforementioned system. Purpose of the article: The purpose of this article is to identify the most important solutions to support the development of competition in the economy through the public procurement system, as well as to examine the obstacles and risks carried by the system itself. Another purpose is to present further action proposals based on research — actions affecting the development of competition and at the same time improving the efficiency of tenders. Methods: The article is based on the analysis of literature and on a questionnaire. The survey was conducted electronically (CAWI). The questionnaire was sent to 300 entities required to apply the provisions of the Public Procurement Law throughout the country. Another method involved a direct route (PAPI) and 155 entities participating in public tenders as contractors. Purposeful sampling was implemented to ensure reliable and expert replies. The study was carried out in the first half of 2016. Findings and Value added: The results indicate the most important solutions supporting the development of competition. They include the following: facilitating access to information about orders, improving the efficiency of state authorities in detecting collusive tendering, reducing the possibility of using the potential of third parties, and increasing the availability of data on tender results. The solutions presented in this article are evolutionary rather than revolutionary, and point primarily to the ability to streamline existing procedures and regulations and not to replace them with new ones. They should also help to improve the functioning of public procurement system in Poland, which is of great importance for the development of competition in domestic economy.

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