Demand Pooling in Omnichannel Operations

2021 ◽  
Author(s):  
Ming Hu ◽  
Xiaolin Xu ◽  
Weili Xue ◽  
Yi Yang
Keyword(s):  
Operations Management ◽  
Fundamental System ◽  
Profit Margin ◽  
Fill Rate ◽  
Brick And Mortar ◽  
Waiting Cost ◽  
The Impact ◽  
Online Buying

Both traditional retailers and e-tailers have been implementing omnichannel strategies such as buy online, pick up at store (BOPS). We build a stylized model to investigate the impact of the BOPS initiative on store operations from an inventory perspective. We consider two segments of customers, namely store-only customers who only make purchases offline and omni-customers who strategically choose between offline and online channels. We show that BOPS may either benefit or hurt the retailer depending on two fundamental system primitives: the store visiting cost and the online waiting cost. If the online waiting cost is relatively low and the store visiting cost is even lower, BOPS can induce omni-customers to migrate from online buying to BOPS, leading to demand pooling at the brick-and-mortar (B&M) store. Such demand pooling provides two benefits for the retailer: it reduces the overstocking cost, and after inventory reoptimization, it results in a higher fill rate at the B&M store, which benefits existing customers and potentially attracts more customers to the store. In contrast, if both store visiting and online waiting costs are relatively high with the latter even higher, introducing BOPS can result in demand depooling as a result of the migration of the omni-customers from offline purchasing to BOPS. This leads to a lower fill rate after inventory reoptimization, likely the result of a lower profit margin under BOPS, which turns away store-only customers and hurts the retailer. This paper was accepted by Charles Corbett, operations management.

Designing a CRM Framework for online & offline sports footwear retailers

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Rodrigo Cueva ◽  
Guillem Rufian ◽  
Maria Gabriela Valdes
Keyword(s):  
Environmental Changes ◽  
Customer Relationship ◽  
Business Strategies ◽  
Economic Sectors ◽  
Running Shoes ◽  
Brick And Mortar ◽  
Key Factor ◽  
On Line ◽  
The Impact

The use of Customer Relationship Managers to foster customers loyalty has become one of the most common business strategies in the past years.  However, CRM solutions do not fill the abundance of happily ever-after relationships that business needs, and each client’s perception is different in the buying process.  Therefore, the experience must be precise, in order to extend the loyalty period of a customer as much as possible. One of the economic sectors in which CRM’s have improved this experience is retailing, where the personalized attention to the customer is a key factor.  However, brick and mortar experiences are not enough to be aware in how environmental changes could affect the industry trends in the long term.  A base unified theoretical framework must be taken into consideration, in order to develop an adaptable model for constructing or implementing CRMs into companies. Thanks to this approximation, the information is complemented, and the outcome will increment the quality in any Marketing/Sales initiative. The goal of this article is to explore the different factors grouped by three main domains within the impact of service quality, from a consumer’s perspective, in both on-line and off-line retailing sector.  Secondly, we plan to go a step further and extract base guidelines about previous analysis for designing CRM’s solutions focused on the loyalty of the customers for a specific retailing sector and its product: Sports Running Shoes.

Drivers, Riders, and Service Providers: The Impact of the Sharing Economy on Mobility

2021 ◽  
Author(s):  
Saif Benjaafar ◽  
Harald Bernhard ◽  
Costas Courcoubetis ◽  
Michail Kanakakis ◽  
Spyridon Papafragkos
Keyword(s):  
Operations Management ◽  
Service Providers ◽  
Sharing Economy ◽  
Car Ownership ◽  
Full Time ◽  
Ride Sharing ◽  
Finite Set ◽  
Nonatomic Game ◽  
Payoff Functions ◽  
The Impact

It is widely believed that ride sharing, the practice of sharing a car such that more than one person travels in the car during a journey, has the potential to significantly reduce traffic by filling up cars more efficiently. We introduce a model in which individuals may share rides for a certain fee, paid by the rider(s) to the driver through a ride-sharing platform. Collective decision making is modeled as an anonymous nonatomic game with a finite set of strategies and payoff functions among individuals who are heterogeneous in their income. We examine how ride sharing is organized and how traffic and ownership are affected if a platform, which chooses the seat rental price to maximize either revenue or welfare, is introduced to a population. We find that the ratio of ownership to usage costs determines how ride sharing is organized. If this ratio is low, ride sharing is offered as a peer-to-peer (P2P) service, and if this ratio is high, ride sharing is offered as a business-to-customer (B2C) service. In the P2P case, rides are initiated by drivers only when the drivers need to fulfill their own transportation requirements. In the B2C case, cars are driven all the time by full-time drivers taking rides even if these are not motivated by their private needs. We show that, although the introduction of ride sharing may reduce car ownership, it can lead to an increase in traffic. We also show that traffic and ownership may increase as the ownership cost increases and that a revenue-maximizing platform might prefer a situation in which cars are driven with only a few seats occupied, causing high traffic. We contrast these results with those obtained for a social welfare-maximizing platform. This paper was accepted by Charles Corbett, operations management.

Heavy Lifters, India: Towards a Circular Economy Era

2021 ◽  
pp. 097226292110435
Author(s):  
Anupama Prashar
Keyword(s):  
Operations Management ◽  
Circular Economy ◽  
Business Models ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Planning And Control ◽  
Cost Of Ownership ◽  
Challenges And Opportunities ◽  
And Control ◽  
The Impact

The case helps students to understand the emerging concept of linear and circular economies. It facilitates to examine the implications of circular business models such as remanufacturing on operations management decisions. It also introduces them to the concept of total cost of ownership and impact of remanufacturing on reducing total cost of ownership. The cases help students to evaluate the challenges and opportunities of remanufacturing business in emerging economy like India. This case is among the first few cases on the application of circular economy principles in context of heavy-duty and off-road sector and the impact of these principles on product design and production planning and control decisions.

Does Water Scarcity Affect Environmental Performance? Evidence from Manufacturing Facilities in Texas

2021 ◽  
Author(s):  
Suresh Muthulingam ◽  
Suvrat Dhanorkar ◽  
Charles J. Corbett
Keyword(s):  
Water Scarcity ◽  
Operations Management ◽  
Environmental Performance ◽  
Data Set ◽  
Full Sample ◽  
Toxic Releases ◽  
Manufacturing Operations ◽  
Toxic Emissions ◽  
Manufacturing Facilities ◽  
The Impact

It is well known that manufacturing operations can affect the environment, but hardly any research explores whether the natural environment shapes manufacturing operations. Specifically, we investigate whether water scarcity, which results from environmental conditions, influences manufacturing firms to lower their toxic releases to the environment. We created a data set that spans 2000–2016 and includes details on the toxic emissions of 3,092 manufacturing facilities in Texas. Additionally, our data set includes measures of the water scarcity experienced by these facilities. Our econometric analysis shows that manufacturing facilities reduce their toxic releases into the environment when they have experienced drought conditions in the previous year. We examine facilities that release toxics to water as well as facilities with no toxic releases to water. We find that the reduction in total releases (to all media) is driven mainly by those facilities that release toxic chemicals to water. Further investigation at a more granular level indicates that water scarcity compels manufacturing facilities to lower their toxic releases into media other than water (i.e., land or air). The impact of water scarcity on toxic releases to water is more nuanced. A full-sample analysis fails to link water scarcity to lower toxic releases to water, but a further breakdown shows that manufacturing facilities in counties with a higher incidence of drought do lower their toxic releases to water. We also find that facilities that release toxics to water undertake more technical and input modifications to their manufacturing processes when they face water scarcity. This paper was accepted by David Simchi-Levi, operations management.

The Assistant Principalship: A Keystone or a Stepping Stone

2021 ◽  
pp. 002205742110323
Author(s):  
David M. Schmittou
Keyword(s):  
School Leadership ◽  
Assistant Principals ◽  
Job Rotation ◽  
Assistant Principalship ◽  
Roles And Responsibilities ◽  
Constant Change ◽  
Brick And Mortar ◽  
The Impact ◽  
Culture And Climate ◽  
Brick And Mortar Schools

Schools are dynamic environments surrounded by static brick and mortar. Schools are a complex entanglement of systems clinging to normalcy led and composed of individuals seeking growth and progress. There is constant turnover as students move through the systems, gaining mastery, seeking support, and receiving guidance. Employees similarly move often as they change roles and responsibilities, as cultures emerge and evolve, and as individuals retire, are hired, or move on to other positions, commonly referred to as “job rotation.” This constant change affects a school’s culture and climate as each is achieved through sustained efforts. When change is present within the school leadership, specifically those identified as assistant principals within their organizational hierarchy, the impact on school culture may be even more dramatic than the effects felt with the turnover of students and teachers.

scholarly journals Grocery Retailing in India: Online Mode versus Retail Store Purchase

2016 ◽  
Vol 9 (5) ◽  
pp. 180
Author(s):  
Masood H Siddiqui ◽  
Shalini N Tripathi
Keyword(s):  
Risk Perceptions ◽  
Binary Logistic Regression ◽  
Market Potential ◽  
Value For Money ◽  
Online Mode ◽  
Grocery Retailing ◽  
Brick And Mortar ◽  
Grocery Purchase ◽  
Mode Versus ◽  
The Impact

<p>E-retailing is entering into the Indian retail scenario in a noticeable way and online grocery retailing holds a promise of acceptance by the Indian customers. This paper attempts to discover the market potential of online grocery retailing in India and consumers’ perception towards its different aspects. Confirmatory factor analysis proposes that there are five underlying dimensions (<em>convenience</em>, <em>value for money</em>, <em>variety</em>, <em>loyalty</em> and <em>ambient factors</em>) governing the selection of mode for grocery purchase. Thereafter Binary-Logistic Regression has been employed to analyze the impact of these five broad perceptual dimensions upon the acceptance/rejection of online grocery retailing. The respondents accorded the highest importance to the factors <em>value for money</em> and <em>convenience</em>. The study suggested that issues like meeting customer expectations and preferences in terms of delivering value for money, quick and convenient purchasing, smooth delivery process, and reducing risk perceptions are critical for establishing online grocery retailing as an effective alternative to traditional brick and mortar retailing.</p>

How Price Dispersion Changes When Upgrades Are Introduced: Theory and Empirical Evidence from the Airline Industry

2019 ◽  
Vol 65 (8) ◽  
pp. 3835-3852 ◽  
Author(s):  
Yao Cui ◽  
A. Yeşim Orhun ◽  
Izak Duenyas
Keyword(s):  
Operations Management ◽  
Airline Industry ◽  
Price Dispersion ◽  
Consumer Welfare ◽  
Data Set ◽  
Differentiation Strategy ◽  
Valuation Effect ◽  
Price Distribution ◽  
The One ◽  
The Impact

This paper studies the effect of introducing a new vertical differentiation strategy, paying for an upgrade to a premium product after purchasing the base product, on the price dispersion of the base product arising from existing price discrimination strategies. In particular, we examine how a major U.S. airline’s price dispersion in the coach cabin changes after introducing the option to upgrade to a new type of premium economy seating within the coach cabin. We first provide a theoretical analysis that highlights two competing pressures that the new premium economy seating upgrades created on coach class prices. On the one hand, the airline benefits from lowering its prices because by allowing more customers to purchase in the first place, it increases the probability of selling upgrades (admission effect). On the other hand, for some customers, the value of flying with the airline increases because of the upgrade availability, therefore the airline may find it optimal to increase its prices (valuation effect). In the second part of the paper, we conduct an empirical investigation of the impact of upgrade introduction on coach class prices, based on a proprietary transaction-level data set from a major U.S. airline company. The empirical analysis tests the main predictions of our theoretical model and examines further nuances. The results show that the introduction of the premium economy seating upgrades is associated with an increase in the price dispersion and revenues in the coach class, the admission effect is stronger than the valuation effect on the low end of the price distribution, and the opposite is true on the high end of the price distribution. Finally, we discuss implications of our results for firm revenues and consumer welfare. This paper was accepted by Serguei Netessine, operations management.

scholarly journals Corporate Governance, Political Connections, and Bank Performance

2019 ◽  
Vol 7 (4) ◽  
pp. 62 ◽  
Author(s):  
Haris ◽  
Yao ◽  
Tariq ◽  
Javaid ◽  
Ain
Keyword(s):  
Corporate Governance ◽  
Profit Margin ◽  
Political Connections ◽  
Return On Assets ◽  
Board Size ◽  
Bank Profitability ◽  
Return On Equity ◽  
Net Interest Margin ◽  
The Impact ◽  
Interest Margin

This study investigates the impact of corporate governance characteristics and political connections of directors on the profitability of banks in Pakistan. The study uses the data of 26 domestic banks over the latest and large period of 2007–2016. Our findings firstly affirm that bank profitability is negatively affected by the presence of politically connected directors on the board, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin. Secondly, our findings also affirm the negative political influence on the sustainability of the banking industry, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin during the government transition of banks having politically connected directors sitting on their board. Our findings further report an inverted U-shaped relationship between board size and bank profitability, suggesting that a board size beyond 8–9 members decreases the profitability. The study further finds a positive impact of board composition, board independence, and director compensation on bank profitability, while also finding a negative impact of frequent board meetings, presence of foreign directors, and audit committee independence.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals CONSTRUCTION BUDGET AND ITS IMPACT ON CONSTRUCTION COSTS IN TIMES OF SANITARY CRISIS IN CORPORACION SANTA MARIA

2021 ◽  
Vol 9 (07) ◽  
pp. 112-118
Author(s):  
Dra. Flor Calvanapon Alva ◽  
◽  
Mg. Karina Cardenas Rodriguez ◽  
Silvia Cespedes Esquivel ◽  
Roxana Lujan Rodriguez ◽  
...  
Keyword(s):  
San Francisco ◽  
Negative Impact ◽  
Profit Margin ◽  
School Buildings ◽  
Construction Costs ◽  
Health Crisis ◽  
Documentary Analysis ◽  
Record Card ◽  
The Impact ◽  
Santa Maria

In order to determine the impact of the construction budget on the construction costs of the Santa Maria Corporation SAC-2020, an applied research was carried out, qualitative approach, non-experimental design and correlational scope, the sample are works executed in times of health crisis the school buildings No. 81540 San Francisco de Asis and No. 80638 Americo Aguilar Celis, in the province of Viru. Thestudytechniqueused was documentary analysis and the instrument was a record card. The data obtained were processed to evaluate the incidence of the variables by means of statistical tables where it was found that 4.29% additional materials were used for the first work and 4.33% additional for the second, with respect to the budget in the case of direct general expenses, 18.75% and 23.33% respectively, additional to the estimate. It is concluded that the construction budget has a negative impact on the construction costs of Corporacion Santa Maria SAC-2020 in times of sanitary crisis, observing relevant variations between the estimated and executed costs, not obtaining the expected profit margin noting that in the case of the first project the profit margin is only 10% of the estimate and in the second projectitis 0%.

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