Storage allocation framework for designing lean buffers in forward-reserve model: a test case

2017 ◽  
Vol 45 (1) ◽  
pp. 90-118 ◽  
Author(s):  
Bhavin Shah ◽  
Vivek Khanzode
Keyword(s):  
Material Flow ◽  
Customer Value ◽  
Buffer Size ◽  
Storage Space ◽  
Distribution Centers ◽  
Storage Allocation ◽  
Content Type ◽  
The Impact ◽  
Varying Demand ◽  
Forward Area

Purpose The retail revolution swing from traditional distribution to e-tailing services and unprecedented increase in internet adoption insist practitioners to diversely plan warehousing strategies. More than practically required storage space has been identified as wastes, and also it does not improve performance. An organized framework integrating storage design policies, operational performance and customer value improvement for retail-distribution management is lacking. Therefore, the purpose of this paper is to develop broad guidelines to design the “just-right” amount of forward area, i.e., “lean buffer” answering the following questions: “What should be lean buffer size? How effective the forward area is? As per demand variations, which storage waste (SKU) should be allocated with how much storage space? What is the amount of storage waste (SW)? How smooth the material flow is in between reserve-forward area?” for storage allocation in cosmetics distribution centers. Design/methodology/approach After forecasting static storage allocation between two planning horizons, if a particular SKU is less or non-moving, then it will cause SW, as the occupied location can be utilized by other competing SKUs, and also it impedes material flow for an instance. A dynamically efficient and self-adaptive, knapsack instance based heuristics is developed in order to make effective storage utilization. Findings The existing state-of-the-art under study is supported with a distribution center case, and the study investigates the need of a model adopting lean management approach in storage allocation policies along with test results in LINGO. The sensitivity analysis describes the impact of varying demand and buffer size on performance. The results are compared with uniform and exponential distributed demands, and findings reveal that the proposed heuristics improves efficiency and reduce SWs in forward-reserve area. Originality/value The presented model demonstrates a novel thinking of lean adoption in designing storage allocation strategy and its performance measures while reducing wastes and improving customer value. Future research issues are highlighted, which may be of great help to the researchers who would like to explore the emerging field of lean adoption for sustainable retail and distribution operations.

Designing a lean storage allocation policy for non-uniform unit loads in a forward-reserve model

2018 ◽  
Vol 31 (1) ◽  
pp. 112-145 ◽  
Author(s):  
Bhavin Shah ◽  
Vivek Khanzode
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
Support System ◽  
Buffer Size ◽  
Storage Allocation ◽  
Content Type ◽  
Allocation Policy ◽  
Dynamic Storage Allocation ◽  
Dynamic Storage ◽  
Forward Area

Purpose The contemporary e-tailing marketplace insists that distribution centers are playing the roles of both wholesalers and retailers which require different storage-handling load sizes due to different product variants. To fulfill piecewise retail orders, a separate small size-fast pick area is design called “forward buffer” wherein pallets are allocated from reserve area. Due to non-uniform pallets, the static allocation policy diminishes forward space utilization and also, more than practically required buffer size has been identified as wastage. Thus, dynamic storage allocation policy is required to design for reducing storage wastage and improving throughput considering non-uniform unit load sizes. The purpose of this paper is to model such policy and develop an e-decision support system assisting enterprise practitioners with real-time decision making. Design/methodology/approach The research method is developed as a dynamic storage allocation policy and mathematical modeled as knapsack-based heuristics. The execution procedure of policy is explained as an example and tested with case-specific data. The developed model is implemented as a web-based support system and tested with rational data instances, as well as overcoming prejudices against single case findings. Findings The provided model considers variable size storage-handling unit loads and recommends number of pallets allocations in forward area reducing storage wastes. The algorithm searches and suggests the “just-right” amount of allocations for each product balancing existing forward capacity. It also helps to determine “lean buffer” size for forward area ensuring desired throughput. Sensitivity and buffer performance analysis is carried out for Poisson distributed data sets followed by research synthesis. Practical implications Warehouse practitioners can use this model ensuring a desired throughput level with least forward storage wastages. The model driven e-decision support system (DSS) helps for effective real-time decision making under complicated business scenarios wherein products are having different physical dimensions. It assists the researchers who would like to explore the emerging field of “lean” adoption in enterprise information and retail-distribution management. Originality/value The paper provides an inventive approach endorsing lean thinking in storage allocation policy design for a forward-reserve model. Also, the developed methodology incorporating features of e-DSS along with quantitative modeling is an inimitable research contribution justifying rational data support.

What should be lean buffer threshold for the forward-reserve warehouse?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah
Keyword(s):  
Mathematical Model ◽  
Customer Service ◽  
Value Added ◽  
Service Level ◽  
Buffer Size ◽  
Value Stream Mapping ◽  
Content Type ◽  
Customer Service Level ◽  
The Impact ◽  
Just Right

PurposeThe assorted piece-wise retail orders in a cosmetics warehouse are fulfilled through a separate fast-picking area called Forward Buffer (FB). This study determines “just-right” size of FB to ensure desired Customer Service Level (CSL) at least storage wastages. It also investigates the impact of FB capacity and demand variations on FB leanness.Design/methodology/approachA Value Stream Mapping (VSM) tool is applied to analyse the warehouse activities and mathematical model is implemented in MATLAB to quantify the leanness at desired CSL. A comprehensive framework is developed to determine lean FB buffer size for a Retail Distribution Centre (RDC) of a cosmetics industry.FindingsThe CSL increases monotonically; however, the results concerning spent efforts towards CSL improvement gets diminished with raised demand variances. The desired CSL can be achieved at least FB capacity and fewer Storage Waste (SW) as it shifts towards more lean system regime. It is not possible to improve Value Added (VA) time beyond certain constraints and therefore, it is recommended to reduce Non-Value Added (NVA) order processing activities to improve leanness.Research limitations/implicationsThis study determines “just-right” capacity and investigates the impact of buffer and demand variations on leanness. It helps managers to analyse warehouse processes and design customized distribution policies in food, beverage and retail grocery warehouse.Practical implicationsProposed buffering model offers customized strategies beyond pre-set CSL by varying it dynamically to reduce wastages. The mathematical model deriving lean sizing and mitigation guidelines are constructive development for managers.Originality/valueThis research provides an inventive approach of VSM model and Mathematical algorithm endorsing lean thinking to design effective buffering policies in a forward warehouse.

Digital communication, value co-creation and customer engagement in business networks: a conceptual matrix and propositions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
C.M. Sashi
Keyword(s):  
Customer Value ◽  
Digital Communication ◽  
Customer Engagement ◽  
Business Networks ◽  
Relational Exchange ◽  
Initial Attempt ◽  
Business Markets ◽  
Content Type ◽  
Organizational Engagement ◽  
The Impact

Purpose Technological innovations that resulted in the emergence and widespread adoption of digital communication in recent years have led to a surge of academic and practitioner interest in its implications for the co-creation of value and customer engagement. However, in comparison to the attention given to the study of customer engagement in consumer markets, few studies have examined its key role in business markets. This paper aims to examine the impact of digital communication on value co-creation and customer engagement in inter-organizational relationships in business networks. Design/methodology/approach Co-creation of value and customer engagement in business networks occurs among interconnected organizations that are partners in intermediate transactions. The paper develops a matrix of inter-organizational engagement among partners in business networks and propositions linking digital communication to value co-creation and inter-organizational engagement. Findings The relationships among network organizations may be characterized by the extent of relational exchange and inter-organizational bonds among them. Four types of inter-organizational engagement emerge: transactional partners, loyal partners, trusted partners and engaged partners. The partners co-create value to better satisfy customers. Research limitations/implications The paper is an initial attempt to develop a conceptual understanding of customer engagement in business markets and formulate propositions that can be further investigated. Networks of partner organizations co-create value, altering their input and output markets, value addition and products, permitting greater flexibility and customization in satisfying the needs of customers. Practical implications The ability afforded by digital communication for real-time interactive communication enables individuals from multiple departments and hierarchical positions within multiple organizations dispersed across geographic locations and industries to maintain contact, quickly and easily communicate task information, build trust and commitment in long-term relationships with network partners and provide superior customer value. Originality/value The paper represents a unique attempt to understand the nature of customer engagement in business markets. It discusses how digital communication alters market transactions among partner organizations in a network by facilitating changes in their make/buy decisions. It develops a matrix of inter-organizational engagement in business networks and propositions that improve understanding of the customer engagement concept and provide the foundation for strategies to better satisfy customers.

Can collaborative buffering strategies reduce distribution costs while improving product returns?: A case of an Asian e-retailer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah ◽  
Gaganpreet Singh
Keyword(s):  
Customer Value ◽  
Time Windows ◽  
Value Added ◽  
Revenue Sharing ◽  
Content Type ◽  
Profit Margins ◽  
Return Policies ◽  
Buffer Time ◽  
Proposed Model ◽  
The Impact

PurposeIn order to achieve competitive advantage over the physical marketplace, the e-retailers are insisted on endowing with lenient return policies. The piece-wise returns-and-reordering process incurs excessive buffering and unwanted logistics costs which raises overall fulfillment charges. The objective of this study is to re-design e-retail distribution policy by providing temporal storage at logistics service provides' (LSP) location. The impact of recurrent returns on pricing and profit margins are also investigated over time continuum.Design/methodology/approachA framework is developed to reduce the non-value added (NVA) storage and distribution efforts by providing collaborative buffering between LSP and e-retailer. The knapsack based buffering approach is tested and compared with traditional e-retail distribution practices. The revenue sharing concept is mathematically modelled and implemented in GAMS, which finally validated through multiple return scenarios.FindingsThe proposed model outperforms the existing one under all scenarios with different configuration settings of re-ordering, profit margins, and buffer time windows. The distribution cost is found, linearly related to the necessary product buffering space. The findings help to re-design sustainable return policies for individual products so that maximum customer value can be yield with minimum costs.Research limitations/implicationsThis study helps to determine the NVA efforts incurred while storing and delivering multi-time returned products to ensure desired service levels. The revenue sharing model provides pricing strategies for e-retail practitioners deciding which product should store in what quantity for how much time at the shipping agency location so that it fulfils the re-ordering at least waiting and sufficient buffering.Originality/valueThe proposed model extends the role of LPSs as temporary buffer providers to reduce returns-and-reordering fulfilment efforts in the e-retail network. This Collaborative framework offers an opportunity to amend the distribution contracts and policies time by time that enhances e-retailer's performance and customer satisfaction.

Customer loyalty and value anticipation: does perceived competition matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ishmael Ofoli Christian ◽  
Thomas Anning-Dorson ◽  
Nii Nookwei Tackie
Keyword(s):  
Customer Value ◽  
Banking Sector ◽  
Value Theory ◽  
External Boundary ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Attitudinal Loyalty ◽  
Situational Effects ◽  
Bank Marketing ◽  
The Impact

PurposeDrawing on customer value theory and the demanding nature of today's customers, this paper examines the moderating effects of competition, as perceived by customers, on the nexus between customer value anticipation (CVA), satisfaction and loyalty.Design/methodology/approachUtilizing data from the Ghanaian banking sector, which has been going through some reforms that are changing the banking landscape, the study analyzes data from 587 customers. Respondents were drawn from a cluster of banks within an enclave with different types of customers and epitomize the competitive nature of Ghana's banking sector.FindingsCVA drives customer satisfaction, attitudinal loyalty and behavioral loyalty among bank customers. However, between attitudinal and behavioral loyalty, customers will be more behaviorally loyal to banks that successfully anticipate their needs than they would be in attitude. The relationships between CVA and satisfaction and loyalty are such that the level of competition among sector players does not alter the effect; thus, when a bank is able to anticipate customer value, customers are going to stay loyal to such a bank irrespective of the competitive offers.Originality/valueAlthough the impact CVA has on satisfaction and loyalty is justified in the existing literature, extant research has not systematically examined the influence of external boundary and situational effects on the potency of anticipating customer value in detail. The current study shows the effect of competition on CVA and customer behavioral outcome. The study further concludes that irrespective of competition, banks that are perceived to be high on CVA will have their customers being loyal. This is very important in the development of bank marketing and product innovation strategies.

scholarly journals The value of social networking sites in hotels

2019 ◽  
Vol 22 (2) ◽  
pp. 114-132 ◽  
Author(s):  
Sarah Diffley ◽  
Patrick McCole
Keyword(s):  
Social Networking ◽  
Social Networking Sites ◽  
Customer Value ◽  
Hotel Industry ◽  
Research Area ◽  
Theory And Practice ◽  
Content Type ◽  
Marketing Activities ◽  
The Impact ◽  
Hotel Marketing

Purpose Despite the rapid growth of social networking sites (SNSs), research demonstrating the marketing application of these technologies is lacking. Consequently, this paper aims to explore the impact of SNSs on hotel marketing activities. Design/methodology/approach An exploratory study was used. Adopting a key informant approach, in-depth interviews were conducted with 14 respondents in the hotel industry, who use SNSs as part of their hotel marketing efforts. Findings Networked interactions facilitated by SNSs can influence the marketing activities of hotels in many ways. This extends to deeper connections and co-creating value with customers to enhance the market offerings and promotional activities of the firm. Not all interviewees capitalised upon the capabilities offered by SNSs. Practical implications SNSs act as a key knowledge resource that can be used by practitioners to create and deliver superior customer value. However, the extent to which this is achieved depends on who is responsible for implementing it. Specifically, those with a more proactive attitude and approach towards marketing on SNSs tend to reap greater benefits. Originality/value Using the service-dominant logic as a guide, this paper offers greater insight into the theory and practice of social media marketing in the hotel industry, an under-studied and fragmented research area.

Governance and customer value creation in business solutions

2020 ◽  
Vol 35 (6) ◽  
pp. 1089-1098
Author(s):  
Erik Mooi ◽  
Vishal Kashyap ◽  
Marc van Aken
Keyword(s):  
Customer Value ◽  
Seemingly Unrelated Regression ◽  
Content Type ◽  
Relational Norms ◽  
Unrelated Regression ◽  
Short Time Span ◽  
Lighting Systems ◽  
Short Time ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to consider the impact of contractual and normative governance mechanisms on recommendation intent in a context of healthcare and professional lighting where repeat business from a customer is absent. The authors suggest both contractual and normative governance can create recommendation intent, but only when sufficient customer value is created. Design/methodology/approach The authors draw on a combination of survey and archival data from the supplier and customer in the medical equipment and advanced (business) lighting systems industries. The authors analyze the data using seemingly unrelated regression and mediation tests. Findings Contracts and relational norms can increase customer recommendation intent, but only when the supplier creates customer value. Practical implications The paper’s findings suggest that customers of business solutions are more likely to recommend their supplier when contracts are relatively detailed and when buyers and suppliers attempt to craft strong relational norms, despite service solutions being delivered during a relatively short time span. Originality/value The extant research on business solutions has focused on extended relationships between exchange partners with a high likelihood of repeated transactions. The authors demonstrate how to govern relationships in a solutions context where the likelihood of repeat business from the same customer is low using contractual and normative governance.

How can European museums reach sustainability?

2017 ◽  
Vol 72 (3) ◽  
pp. 303-318 ◽  
Author(s):  
Nuria Recuero Virto ◽  
Maria Francisca Blasco López ◽  
Sonia San-Martín
Keyword(s):  
Market Orientation ◽  
Customer Value ◽  
Design Methodology ◽  
Marketing Strategies ◽  
Value For Money ◽  
Content Type ◽  
Value Perceptions ◽  
Decision Making Processes ◽  
The Impact ◽  
Practical Implications

Purpose This research aims to provide evidence of the impacts of market orientation, customer value approach (through prestige, value for money and reputation for quality) and innovation on museum sustainability. Design/methodology/approach The model is analysed through partial least squares (PLS-SEM), using a sample of 549 European museums. Findings The results reveal that reputation for quality, prestige, innovation and value for money positively and significantly influence museum sustainability. Interestingly, the most meaningful linkage is between market orientation and innovation. Practical implications This research helps museums that need to increase their customer value and innovativeness so as to ensure museum sustainability. It proves that museum managers have to increase employees’ involvement in decision-making processes. Originality/value By using a wide sample of European museums, this study suggests that museum managers need to consider the impact of marketing strategies and customer value perceptions on the economic and social sustainability of museums.

Business models for the now economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Art T. Weinstein
Keyword(s):  
Online Learning ◽  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Content Type ◽  
Digital Business Models ◽  
Business Practitioners ◽  
The Impact ◽  
Remote Learning

Purpose Business models are a key to success. This paper aims to identify the characteristics of the Now Economy, discuss the components of an effective business model, examine numerous e-commerce business models and provide an application of online learning. Design/methodology/approach The literature on business models is reviewed. E-commerce models are explored as a means for building competitive advantage in the Now Economy. An in-depth case study of remote learning in universities illustrates the development of a sound digital business model. Findings Business models explain where and how an organization competes and the financial feasibility of its strategy. Digital business models create market differentiation or disruption. This paper explains 20 e-commerce business models and offers an in-depth view of the opportunities and challenges in the online learning sector. Research limitations/implications Building on the literature, this work is conceptual and presents a case study. It is not an empirical study. A three-point agenda for scholars includes research on speed and service in business models, assessing the impact of customer value and examining the market power of Big Tech. Practical implications The digital component of the economy is growing annually. Business practitioners must respond by developing winning business models. The remote learning application is particularly relevant given today’s changing educational market. Originality/value While there has been considerable research on business models, there has been limited work on digital business models, which is the focus of this article.

An Ontology-based Bayesian network modelling for supply chain risk propagation

2019 ◽  
Vol 119 (8) ◽  
pp. 1691-1711 ◽  
Author(s):  
Shoufeng Cao ◽  
Kim Bryceson ◽  
Damian Hine
Keyword(s):  
Supply Chain ◽  
Bayesian Network ◽  
Customer Value ◽  
Large Scale ◽  
Table Grape ◽  
Scale Model ◽  
Management Approach ◽  
Network Modelling ◽  
Content Type ◽  
The Impact

Purpose Supply chain risks (SCRs) do not work in isolation and have impact both on each member of a chain and the performance of the entire supply chain. The purpose of this paper is to quantitatively assess the impact of dynamic risk propagation within and between integrated firms in global fresh produce supply chains. Design/methodology/approach A risk propagation ontology-based Bayesian network (BN) model was developed to measure dynamic SCR propagation. The proposed model was applied to a two-tier Australia-China table grape supply chain (ACTGSC) featured with an upstream Australian integrated grower and exporter and a downstream Chinese integrated importer and online retailer. Findings An ontology-based BN can be generated to accurately represent the risk domain of interest using the knowledge and inference capabilities inherent in a risk propagation ontology. In addition, the analyses revealed that supply discontinuity, product inconsistency and/or delivery delay originating in the upstream firm can propagate to increase the downstream firm’s customer value risk and business performance risk. Research limitations/implications The work was conducted in an Australian-China table grape supply chain, so results are only product chain-specific in nature. Additionally, only two state values were considered for all nodes in the model, and finally, while the proposed methodology does provide a large-scale risk network map, it may not be appropriate for a large supply chain network as it only follows the process flow of a single supply chain. Practical implications This study supports the backward-looking traceability of risk root causes through the ACTGSC and the forward-looking prediction of risk propagation to key risk performance measures. Social implications The methodology used in this paper provides an evidence-based decision-making capability as part of a system-wide risk management approach and fosters collaborative SCR management, which can yield numerous societal benefits. Originality/value The proposed methodology addresses the challenges in using a knowledge-based approach to develop a BN model, particularly with a large-scale model and integrates risk and performance for a holistic risk propagation assessment. The combination of modelling approaches to address the issue is unique.

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