Applying the bootstrap method to newsvendor model incorporating group buying for optimal price discount and order quantity

Kybernetes ◽  
2017 ◽  
Vol 46 (10) ◽  
pp. 1692-1705 ◽  
Author(s):  
Yan-Kwang Chen ◽  
Chih-Teng Chen ◽  
Fei-Rung Chiu ◽  
Jiunn-Woei Lian
Keyword(s):  
Sample Size ◽  
Newsvendor Model ◽  
Order Quantity ◽  
Customer Demand ◽  
Optimal Price ◽  
Price Discount ◽  
Content Type ◽  
Group Buying ◽  
Demand Distribution ◽  
Proposed Model

Purpose Group buying (GB) is a shopping strategy through which customers obtain volume discounts on the products they purchase, whereas retailers obtain quick turnover. In the scenario of GB, the optimal discount strategy is a key issue because it affects the profit of sellers. Previous research has focused on exploring the price discount and order quantity with a fixed selling price of the product assuming that customer demand is uncertain (but follows a known distribution). This study aims to look at the same problem but goes further to examine the case where not only customer demand is certain but also the demand distribution is unknown. Design/methodology/approach In this study, optimal price discount and order quantity of a GB problem cast as a price-setting newsvendor problem were obtained assuming that the distribution of customer demand is unknown. The price–demand relationship is considered in addition form and product form, respectively. The bootstrap sampling technique is used to develop a solution procedure for the problem. To validate the usefulness of the proposed method, a simulated comparison of the proposed model and the existing one was conducted. The effects of sample size, demand form and parameters of the demand form on the performance of the proposed model are presented and discussed. Findings It is revealed from the numerical results that the proposed model is appropriate to the problem at hand, and it becomes more effective as sample size increases. Because the two forms of demand indicate restrictive assumptions about the effect of price on the variance of demand, it is found that the proposed model seems to be more suitable for addition form of demand. Originality/value This study contributes to the growing literature on GB models by developing a bootstrap-based newsvendor model to determine an optimal discount price and order quantity for a fixed-price GB website. This model can assist the sellers in making decisions on optimal discount price and order quantity without knowing the form of customer demand distribution.

The economic order quantity model with inspection policy of zero-defect single sampling

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Nakhaeinejad
Keyword(s):  
Sample Size ◽  
Inventory Management ◽  
Optimal Solution ◽  
Random Variable ◽  
Solution Procedure ◽  
Order Quantity ◽  
Content Type ◽  
Numerical Examples ◽  
Proposed Model ◽  
Inspection Policy

PurposeThis paper proposes a new inventory model with inspection policy because in practice the received orders may contain non- conforming (NC) items. So, a buyer who receive an order from a supplier should use an inspection policy.Design/methodology/approachThe inspection policy is assumed to be zero-defect single sampling. Under this policy a lot is accepted only if no defect has been identified in the inspected sample. The fraction of NC is assumed to be a random variable following a Binomial distribution and the number of NC items detected by inspection assumed to be a random variable, which follows a hypergeometric distribution. Order quantity and sample size are the two decision variables. A solution procedure is presented for the proposed model. The proposed procedure presents the optimal solution.FindingsNumerical examples presented to illustrate the procedure outlined for the proposed model and its applicability. The results of numerical examples and comparing them with traditional EOQ model reveal that by the proposed model, the buyer could reduce total cost that shows the efficiency and validity of the proposed model.Originality/valueThe novelty of this paper is the new proposed model that considers inspection policy in inventory management. The proposed model determines sample size as well as order quantity to consider both subject of inventory management and quality control, simultaneously.

scholarly journals The Newsvendor Problem with Different Delivery Time, Resalable Returns, and an Additional Order

2015 ◽  
Vol 2015 ◽  
pp. 1-10 ◽  
Author(s):  
Fue Zeng ◽  
Yunjia Chi ◽  
Jinhui Zheng
Keyword(s):  
Return Rate ◽  
Expected Profit ◽  
The Other ◽  
Delivery Time ◽  
Newsvendor Model ◽  
Order Quantity ◽  
Management Implications ◽  
Demand Distribution ◽  
Numerical Tests ◽  
The Impact

In a B2C scenario, the retailer is confronted with two kinds of demand. One requires an immediate delivery after placing an order, while the other prefers a delayed shipment due to some personal reasons. Considering demands for different delivery time, we explore a newsvendor model with resalable returns and an additional order to optimize the procurement decision under a stochastic demand distribution. The impact of the proportion of the instant delivery needs and the return rate on the order quantity and the expected profit is illustrated through numerical tests. It is shown that the expected profit decreases as the ratios of immediate delivery needs and returned products increase. Besides, if the sum of the percentage of the instant delivery needs and the return rate is less than 1, the expected profit is always greater than the result if the sum of them is equal to or greater than 1. Management implications are also discussed.

Exploring the entrepreneurship-performance relationship: evidence from Greek SMEs

2015 ◽  
Vol 22 (2) ◽  
pp. 352-375 ◽  
Author(s):  
Georgios Theriou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Sample Size ◽  
Structural Equation ◽  
Small Sample ◽  
Self Report ◽  
Financial Capital ◽  
Simple Random Sample ◽  
Content Type ◽  
Proposed Model

Purpose – The purpose of this paper is to introduce a conceptual framework (research model) that investigates the linkages between “entrepreneurial orientation (EO)”, “entrepreneurial management (EM)”, “environmental factors (EF)”, “access to financial capital” and “firm performance”. In more detail, “EF” and “access to financial capital” are proposed as moderating factors in the “orientation-performance” relationship, while “EO” and “EM” are hypothesised to have a direct effect on “firm performance”. The proposed model includes factors that have never been collectively examined by the entrepreneurship literature before and is expected to enhance the empirical knowledge about the entrepreneurship-performance relationship in small and medium enterprises (SMEs), offering important practical guidelines to small and medium companies. Design/methodology/approach – The present study is empirical, explanatory, deductive and quantitative. The examination of the proposed conceptual framework was made with the use of a newly developed questionnaire. The population of the study is the sum of Greek SMEs operating during the year 2012. The sample was selected using random sampling techniques: four sectors of the economy were selected (cluster sampling technique) and 760 companies were randomly selected from that sub-group (simple random sample technique). The questionnaire, consisting of 62 items (questions) used to measure the five research factors, was distributed to 333 Greek companies that agreed to participate in the study. After the completion of the research period (September-November 2011), 303 usable questionnaires were returned. Given the fact that the initial target sample was 760 companies the response rate is 39.86 per cent. The empirical data were analysed using the regression analysis and the “Structural Equation Modelling” technique. Findings – Results indicate that “EF” and “access to financial capital” moderate the relationship between “EO” and “firm performance”, through “EM”. Moreover, results confirm a positive relationship between “EO” and “firm performance”, when “EO” is accompanied by “EM” and a direct relationship between “EM” and “firm performance”. Research limitations/implications – The main limitation of the study includes the relatively small sample size. Despite that, the sample size is considered appropriate for the statistical analysis conducted, while similar sample size has been used in other similar studies of the field (Gurbuz and Aykol, 2009; Lumpkin and Dess, 2001; Zahra and Garvis, 2000). Another limitation stemming from the implemented methodology is the use of self-report scales to measure the constructs of the proposed model. Originality/value – This paper attempts to shed some light on those entrepreneurial actions that seem to influence performance. The study makes use of contingent variables and is conducted in SMEs within a European context. As it is obvious from the literature, thus far, there has been a limited amount of research conducted in small European firms examining the entrepreneurship-performance relationship.

Profit Estimation Error in the Newsvendor Model Under a Parametric Demand Distribution

2020 ◽  
Author(s):  
Andrew F. Siegel ◽  
Michael R. Wagner
Keyword(s):  
Operations Management ◽  
Estimation Error ◽  
Expected Profit ◽  
Optimal Order ◽  
Newsvendor Model ◽  
Order Quantity ◽  
Unknown Parameters ◽  
Demand Distribution ◽  
Heavy Tailed ◽  
Normally Distributed

We consider the newsvendor model in which uncertain demand is assumed to follow a probabilistic distribution with known functional form but unknown parameters. These parameters are estimated, unbiasedly and consistently, from data. We show that the classic maximized expected profit expression exhibits a systematic expected estimation error. We provide an asymptotic adjustment so that the estimate of maximized expected profit is unbiased. We also study expected estimation error in the optimal order quantity, which depends on the distribution: (1) if demand is exponentially or normally distributed, the order quantity has zero expected estimation error; (2) if demand is log-normally distributed, there is a nonzero expected estimation error in the order quantity that can be corrected. Numerical experiments, for light- and heavy-tailed distributions, confirm our theoretical results. This paper was accepted by Vishal Gaur, operations management.

Business management in the football industry from a supply chain management perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaleh Memari ◽  
Abbas Rezaei Pandari ◽  
Mohammad Ehsani ◽  
Shokufeh Mahmudi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Business Management ◽  
Relationship Management ◽  
Flow Management ◽  
Manufacturing Firm ◽  
Chain Management ◽  
Content Type ◽  
Proposed Model ◽  
Football Industry

PurposeTo understand the football industry in its entirety, a supply chain management (SCM) approach is necessary. This includes the study of suppliers, consumers and their collaborations. The purpose of this study was to present a business management model based on supply chain management.Design/methodology/approachData were collected through in-depth interviews with 12 academic and executive football experts. After three steps of open, axial and selective coding based on grounded theory with a paradigmatic approach, the data were analysed, and a football supply chain management (FSCM) was developed. The proposed model includes three managerial components: upstream suppliers, the manufacturing firm, and downstream customers.FindingsThe football industry sector has three parts: upstream suppliers, manufacturing firm/football clubs and downstream customers. We proposed seven parts for the managerial processes of football supply chain management: event/match management, club management, resource and infrastructure management, customer relationship management, supplier relationship management, cash flow management and knowledge and information flow management. This model can be used for configuration, coordination and redesign of business operations as well as the development of models for evaluation of the football supply chain's performance.Originality/valueThe proposed model of a football supply chain management, with the existing literature and theoretical review, created a synergistic outcome. This synergy is presented in the linkage of the players in this chain and interactions between them. This view can improve the management of industry productivity and improve the products quality.

Leader–follower narcissism and subgroup formation in teams: a conceptual model

2019 ◽  
Vol 34 (6) ◽  
pp. 429-442 ◽  
Author(s):  
Manuel London
Keyword(s):  
Team Performance ◽  
Team Identification ◽  
Goal Congruence ◽  
Content Type ◽  
Team Outcomes ◽  
Performance Pressure ◽  
Proposed Model ◽  
Leaders And Followers ◽  
Trait Activation ◽  
And Performance

Purpose Drawing on existing theory, a model is developed to illustrate how the interaction between leaders and followers similarity in narcissism and goal congruence may influence subgroup formation in teams, and how this interaction influences team identification and team performance. Design/methodology/approach The proposed model draws on dominance complementary, similarity attraction, faultline formation and trait activation theories. Findings Leader–follower similarity in narcissism and goal congruence may stimulate subgroup formation, possibly resulting in conformers, conspirators, outsiders and victims, especially when performance pressure on a team is high. Followers who are low in narcissism and share goals with a leader who is narcissistic are likely to become conformers. Followers who are high in narcissism and share goals with a narcissistic leader are likely to become confederates. Followers who do not share goals with a narcissistic leader will be treated by the leader and other members as outsiders if they are high in narcissism, and victimized if they are low in narcissism. In addition, the emergence of these subgroups leads to reduced team identification and lower team performance. Practical implications Higher level managers, coaches and human resource professions can assess and, if necessary, counteract low team identification and performance resulting from the narcissistic personality characteristics of leaders and followers. Originality/value The model addresses how and under what conditions narcissistic leaders and followers may influence subgroup formation and team outcomes.

Loyalty program in Africa: risk-seeking and risk-averse adventurers

2014 ◽  
Vol 69 (2) ◽  
pp. 137-157 ◽  
Author(s):  
Shogo Mlozi
Keyword(s):  
Consumer Behavior ◽  
Consumer Products ◽  
Loyalty Programs ◽  
Risk Averse ◽  
Loyalty Program ◽  
Content Type ◽  
Risk Seeking ◽  
Proposed Model ◽  
First Time ◽  
The Relationship

Purpose – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Design/methodology/approach – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Findings – The findings for overall model differed from the moderating factors of high risk, low risk, first-time visit and repeat visit. Also, the results are interesting when satisfaction is tested as a mediator. Practical implications – Practitioners could consider the fact that repeat visits may change tourists’ perceptions toward destination and may even increase their inclination to take on risks. This may impact innovation of consumer products in tourism. Also, policy makers could benefit on how loyalty programs can be developed to increase performance. Originality/value – The study offers specific strategic recommendations toward different groups of tourists (i.e. first-time, repeat visitors, risk averse, risk seeking) and proposes logic for setting up a loyalty program as a long-term strategy for success.

Relationship amongst ResearchGate altmetric indicators and Scopus bibliometric indicators

2015 ◽  
Vol 116 (9/10) ◽  
pp. 564-577 ◽  
Author(s):  
RISHABH SHRIVASTAVA ◽  
Preeti Mahajan
Keyword(s):  
Sample Size ◽  
Correlation Coefficients ◽  
Strong Positive Correlation ◽  
Bibliometric Indicators ◽  
Pearson’S Correlation ◽  
Content Type ◽  
Positive Correlation ◽  
Pearson's Correlation ◽  
Different Characteristics ◽  
The Relationship

Purpose – The purpose of this paper is twofold. First, the study aims to investigate the relationship between the altmetric indicators from ResearchGate (RG) and the bibliometric indicators from the Scopus database. Second, the study seeks to examine the relationship amongst the RG altmetric indicators themselves. RG is a rich source of altmetric indicators such as Citations, RGScore, Impact Points, Profile Views, Publication Views, etc. Design/methodology/approach – For establishing whether RG metrics showed the same results as the established sources of metrics, Pearson’s correlation coefficients were calculated between the metrics provided by RG and the metrics obtained from Scopus. Pearson’s correlation coefficients were also calculated for the metrics provided by RG. The data were collected by visiting the profile pages of all the members who had an account in RG under the Department of Physics, Panjab University, Chandigarh (India). Findings – The study showed that most of the RG metrics showed strong positive correlation with the Scopus metrics, except for RGScore (RG) and Citations (Scopus), which showed moderate positive correlation. It was also found that the RG metrics showed moderate to strong positive correlation amongst each other. Research limitations/implications – The limitation of this study is that more and more scientists and researchers may join RG in the future, therefore the data may change. The study focuses on the members who had an account in RG under the Department of Physics, Panjab University, Chandigarh (India). Perhaps further studies can be conducted by increasing the sample size and by taking a different sample size having different characteristics. Originality/value – Being an emerging field, not much has been conducted in the area of altmetrics. Very few studies have been conducted on the reach of academic social networks like RG and their validity as sources of altmetric indicators like RGScore, Impact Points, etc. The findings offer insights to the question whether RG can be used as an alternative to traditional sources of bibliometric indicators, especially with reference to a rapidly developing country such as India.

scholarly journals How to evaluate sustainability of supply chains? A dynamic network DEA approach

2017 ◽  
Vol 117 (9) ◽  
pp. 1866-1889 ◽  
Author(s):  
Vahid Shokri Kahi ◽  
Saeed Yousefi ◽  
Hadi Shabanpour ◽  
Reza Farzipoor Saen
Keyword(s):  
Big Data ◽  
Supply Chains ◽  
Real World ◽  
Performance Optimization ◽  
Network Dynamic ◽  
Network Dea ◽  
Content Type ◽  
Dea Model ◽  
Proposed Model ◽  
First Time

Purpose The purpose of this paper is to develop a novel network and dynamic data envelopment analysis (DEA) model for evaluating sustainability of supply chains. In the proposed model, all links can be considered in calculation of efficiency score. Design/methodology/approach A dynamic DEA model to evaluate sustainable supply chains in which networks have series structure is proposed. Nature of free links is defined and subsequently applied in calculating relative efficiency of supply chains. An additive network DEA model is developed to evaluate sustainability of supply chains in several periods. A case study demonstrates applicability of proposed approach. Findings This paper assists managers to identify inefficient supply chains and take proper remedial actions for performance optimization. Besides, overall efficiency scores of supply chains have less fluctuation. By utilizing the proposed model and determining dual-role factors, managers can plan their supply chains properly and more accurately. Research limitations/implications In real world, managers face with big data. Therefore, we need to develop an approach to deal with big data. Practical implications The proposed model offers useful managerial implications along with means for managers to monitor and measure efficiency of their production processes. The proposed model can be applied in real world problems in which decision makers are faced with multi-stage processes such as supply chains, production systems, etc. Originality/value For the first time, the authors present additive model of network-dynamic DEA. For the first time, the authors outline the links in a way that carry-overs of networks are connected in different periods and not in different stages.

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