• Industrial Engineering and Management Systems
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• v.7 no.3
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• pp.257-265
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• 2008

This paper deals with the joint decisions on pricing and ordering for a monopolistic retailer who sells perishable goods with a fixed lifetime or demand period. The newsvendor-typed problem is formulated as a two-period inventory system where the first period represents the inventory of fresh or new-arrival items and the second period represents the inventory of items that are older but still usable. Demand may be for either fresh items or for somewhat older items that exhibit physical decay or deterioration. The retailer is allowed to adjust the selling price of the deteriorated items in the second period, which stimulates demand and reduces excess season-end or stale inventory. This paper develops a stochastic dynamic programming model that solves the problem of preseason decisions on ordering-pricing and a within-season decision on markdown pricing. We also develop a fixed-price model as a benchmark against the dual-price dynamic model. To illustrate the effect of the dual-price policy on expected profit, we conduct a comparative study between the two models. Extension to a generalized multi-period model is also discussed.

• The Journal of Industrial Distribution & Business
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• v.9 no.2
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• pp.7-16
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• 2018

Purpose - This research addresses the question of how an international retailer like Costco can succeed in a foreign mature market and satisfy the local consumers. Our study aims to promote our understanding of how foreign retailers influence local consumers in a mature market with differentiated business models. Research design, data, and methodology - Our study uses company publications, secondary sources of information and the results of a questionnaire survey consisting of 106 participants. Consumer responses were solicited through a questionnaire survey conducted in the city of Kobe in December of 2013. Results - Product differentiation from local retailers in a mature market like Japan gave Costco a competitive edge. Compared with local supermarkets, Costco was preferred by Japanese consumers for its variety of goods that it carries, as well as in-store promotion large package of selling units, in-store amenities, and customer services. Conclusions - First, a theoretical framework is proposed in this study that can aid in developing localization strategies in a mature market such as Japan. Second, it reveals that an international retailer can succeed in a foreign market by stimulating local consumers to change their purchasing behavior, without having to alter the prevailing format of operation.

• Journal of Distribution Science
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• v.17 no.7
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• pp.87-98
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• 2019

Purpose - The goal of this research is to examine the influence of Quick Response on the supply chain performance. Furthermore, this study investigates the potential of Quick Response to be a more advanced form of supply chain collaboration program with extensive information sharing activities. Research design, data, and methodology - The mathematical model is developed to represent the two stage supply chain system with a single manufacturer and one retailer. In the numerical study with the proposed mathematical models, three supply chain systems including the traditional system, Quick Response, and the fully shared information system are compared in terms of their profits. Results - The numerical analysis shows both manufacturer and retailer obtain greater profits under Quick Response than in the traditional system. While the fully shared information outperforms Quick Response as well as the traditional system, it results in lower manufacturer's profit compared with Quick Response. Conclusions - According to the numerical examples, Quick Response is the effective supply chain collaboration program that is beneficial to every supply chain member. The fully shared information system, as a more advanced form of collaboration than Quick Response can bring more benefits to the whole supply chain system, but it is necessary to prepare the proper incentive program that enables every member to share its benefits equally.

• Journal of Distribution Science
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• v.18 no.3
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• pp.5-14
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• 2020

Purpose: Trust plays an important role in e-commerce because consumers perceive more risk involved with this type of shopping than traditional way of shopping. Trust is defined as complex and multidimensional issue. This paper argues that trust should be considered to have two important components as trust belief and trust intention, in which trust belief has three components as competence, integrity and benevolence. Research design, data and methodology: This study examines the relationship between retailer website quality (web design, navigation, information), reputation and risk toward trust. In addition, trust and risk toward buying behavior are also considered, leading to customer satisfaction. The paper is conducted on a sample of 594 customers with direct experience of online shopping in Vietnam. Both confirmatory factor analysis (CFA) and a structural equation model (SEM) were utilised. Results: Empirical findings from this paper indicate that trust is high order construct. Website quality and reputation have positive impacts on customers' trust. Trust has a positive relationship to buying behavior and customers' satisfaction while perceived risk has negative relationship to buying behavior. In contrast, a relationship between perceived risk and trust is not supported in this study. Conclusions: Improving reputation and website quality (especially information) may increase customers' trust and eventually lead to purchase decision.

• Knowledge Management Research
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• v.12 no.3
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• pp.73-96
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• 2011

Recent market saturation makes the local retailers consider an attempt to innovate the market with the retailer's brand. This is the retailers' efforts to expand the market control through the enhancement of private brands. As the competition among manufacturers extends to the competition between manufacturers and retailers, the marketing knowledges of manufacturers need to be diversified to the ones that can be applied to the manufacturers and retailers due to their bilateral competition. This research concentrates on the customer acquisition strategy (attack strategy) and customer retention strategy (defense strategy) in the place of both sides of manufacturers and retailers. Also this research targets to develop the differential marketing strategies for target market's National Brand(NB)/Private Brand(PB) purchase by analyzing individual customer's purchase probability on repurchase and switch-purchase of NB and PB. This study is based on the data of frequently consumed product, tomato ketchup on scanner panel from the ERIM data of University of Chicago, USA. This study compares and analyzes the NB and PB repurchases and switch-purchase of 4 types. The comparisons provide the informations that which factors should be managed for the attack strategy, the defense strategy, and the differential marketing strategies both for manufacturers and retailers. This research is expected to contribute on cumulating the industrial knowledges of retailers' and manufacturers' survival strategy, expecially focusing on the effect of marketing factors and consumer-characteristic factors.

• Journal of the Korea Safety Management & Science
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• v.17 no.1
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• pp.203-213
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• 2015

Recently, online grocery shopping has been increasing with the development of internet, mobile, and IT technology due to the proportion of consumers changes like increasing single households and double-income couples. Therefore, online sales from distributors with offline stores have also increased, and the offline retailers are facing their limits in dealing with store-based online channel they have carried out. Domestic offline retailers benchmarked overseas advanced retailers to solve this problem by reviewing about developing the online-only distribution center. However, much investment is needed in order to operate the distribution center with the new concept from abroad. In this study, we have reviewed the current online grocery market trend and the theory related to developing distribution system of the online mall. For offline retailers, we have reviewed the case which developed the distribution center applied to the nation's first online-only distribution center. The purpose of this study is reducing trial and error for local retailers in developing online-only distribution centers and suggesting ways to improve investment effect.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.1194-1197
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• 2006

최근 소매점 공급사슬을 전체적인 관점에서 효율적으로 운영하기 위하여 공급자가 소매점의 재고를 관리하는 공급자 주도 재고관리(Vendor Managed Inventory; VMI)정책의 도입이 확산되고 있다. VMI 정책은 소매점에서 직접 수행하는 재고관리(Retailer Management Inventory; RMI)와는 달리 소매점의 재고수준에 대한 의사결정과 재고유지에 대한 재정적인 책임이 소매점으로부터 공급자에게 옮겨진다. 이에 따라 소매점은 공급자로부터 수시로 재고를 보충 받게 되고 주문절차는 사라진다. 또한 재고공간의 크기를 줄일 수 있게 된다. 공급자 또한 전체 소매점에 대한 효율적인 분배로써 비용절감의 효과를 기대할 수 있게 된다. 본 연구에서는 품절을 고려하며 소매점의 판매수요가 확정적인 상황에 대하여 RMI와 VMI에 대한 총비용을 최소화하는 수리모델을 통해 총비용 관점에서 RMI와 VMI정책을 비교하고자 한다. 계산실험을 통해 RMI와 VMI의 총비용 변화에 민감한 요인들을 분석하였고 VMI 적용으로 총비용을 절감시키기 위한 조건을 모색하였다. 실험결과, VMI의 적용은 항상 총비용 절감 효과를 나타내는 것이 아님을 확인 하였고 RMI에 대한 VMI의 총비용 증감효과는 RMI 정책의 소매점 주문비와 VMI정책의 소매점 재고공간의 크기 변화에 가장 크게 영향을 받는 것으로 나타났다. 이를 토대로 간단한 소매점 공급사슬에 대해서 VMI의 총비용 감소조건을 제시하였다.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.04a
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• pp.139-142
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• 2000

Excessive inventories result from poor scheduling, planning, and controls, and the converse is also same. With adequate inventories, supplies can transport products to customers in time without excessive delivering cost. So efficient inventory control is vital for successful logistics management operation. In terms of mass discount retailers such as Wal-Mart, Carrefour, E-Mart, and so on, they require the high-quality services such as a small-amount and a high-frequency delivery because of having small warehouse and wanting possess much more various goods. In the opposite, manufactures ask mass discount retailer to delivery more lots of goods because of reducing the number of deliveries. It goes without saying that both wish to prevent stockout(lack of inventories). Usually, mass discount retailers have the power more than manufactures. This paper proposed how to manage inventory and how many to order in view of the TPLC and supplier. We considered the economic order quantity models for multiple items so as to prevent urgent deliveries as possible as. And the tradeoff stockout costs and delivering costs.

• Journal of Mechanical Science and Technology
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• v.14 no.4
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• pp.380-392
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• 2000

A typical production-distribution system consist of three main echelons representing the retailer, distributors, and a factory each with an on-site warehouse. The system is sufficiently general and realistic to represent many industrial situations. However, decision functions and parameters have been selected to apply particularly to the production and distribution of consumer durables. The flows included in the model are materials, orders, and those information flows needed to support the material and order-rate decisions. In this work, a realistic production-distribution system has been used as a basic model, which consists of three sectors: retailer, distributor, and factory. That system is a nonlinear 25th-order continuous system interconnected between the echelons. Using a modern control algorithm, a typical multi-echelon production-distribution system using a dynamic controller is numerically simulated in the nominal plant and in the perturbed plant when the piecewise constant manufacturing decision is limited by a factory manufacturing upper-limit due to capital equipment, manpower, and factory lotsize.

• The Journal of the Korea institute of electronic communication sciences
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• v.11 no.11
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• pp.1113-1120
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• 2016

The purpose of this study is to find the important travel agency service quality factors in relation to the amount of information search efforts through major information channels of customers such as interpersonal source, retailer source, and external media source. Factor analysis using varimax rotation was performed and 20 service attributes of travel agent was reduced to 6 factors; convenience system, personal service, customer maintaining service, reputation, atmosphere and accessibility. According to MANOVA analysis there are significant differences in the service quality factor due to the type of source and amount of efforts of information search.