Demand Shaping Through Bundling and Product Configuration: A Dynamic Multiproduct Inventory-Pricing Model

2021 ◽  
Vol 69 (2) ◽  
pp. 525-544 ◽  
Author(s):  
Jing-Sheng Song ◽  
Zhengliang Xue
Keyword(s):  
Demand Uncertainty ◽  
Life Cycles ◽  
Cost Structure ◽  
Product Configuration ◽  
The Internet ◽  
Pricing Model ◽  
Advanced Information Technology ◽  
Inventory Dynamics ◽  
Demand Shaping ◽  
Short Product

In today’s digital age with advanced information technology and analytic tools, such as the internet and data mining, many companies use dynamic bundling to influence demand to match up with the operational status, especially in industries with short product life cycles. In “Demand Shaping through Bundling and Product Configuration: A Dynamic Multiproduct Inventory-Pricing Model,” Jing-Sheng Song and Zhengliang Xue present a novel dynamic model to analyze how exactly the inventory dynamics impact the bundling strategy and, in turn, how the bundling strategy affects the firm's inventory decisions. They also characterize how the optimal bundling decision depends on item complementarity, cost structure, inventory levels, demand uncertainty, and supply responsiveness.

The value of crowdsourcing in apparel and fashion retail buying

2019 ◽  
Author(s):  
◽  
Omid Kamran-Disfani
Keyword(s):  
Demand Uncertainty ◽  
Subjective Assessment ◽  
Life Cycles ◽  
University Of Missouri ◽  
Product Categories ◽  
Fashion Products ◽  
Fashion Retail ◽  
Short Product ◽  
The University ◽  
Future Demand

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT REQUEST OF AUTHOR.] Apparel and fashion retail buyers are responsible for selecting and ordering products, on behalf of the retailer, to be sold to retailers' end-consumers. Compared to their counterparts in other retailing sectors, fashion buyers face unique challenges such as high demand uncertainty and volatility, seasonality, frequent changes in fashion trends, and short product life cycles. As previous trends rarely provide useful information for predicting future sales of trendy products, fashion buyers make a subjective assessment of products' future demand by relying on their intuition and perceived expertise. Industry reports show that fashion buyers' predictions are often far from the demand that is later realized causing loss of profits for retailers. In this dissertation. I argue that retailers can benefit from the Wisdom of the Crowd (WOC) in predicting future sales of fashion products. It is suggested that lay customers as a group can provide more accurate prediction of future demand of fashion products than individual fashion buyers. An empirical study is conducted to test this proposition involving two groups: professional fashion buyers (N=60) and lay customers (N=397). Customers predicted future sales of products in all six product categories that were used in the study. The prediction error, measured by MAPE, was reduced between 12 and 73 percent. The implication of these findings for retailers are discussed, and directions for implementing crowdsourcing in fashion buying to improve prediction accuracy are provided.

Seru Production

2014 ◽  
pp. 45-58 ◽  
Author(s):  
Kathryn E Stecke ◽  
Yong Yin ◽  
Ikou Kaku
Keyword(s):  
Evolutionary Process ◽  
Life Cycles ◽  
Just In Time ◽  
New Production ◽  
Product Life Cycles ◽  
Great Productivity ◽  
Global Companies ◽  
Short Product ◽  
Production Organization ◽  
Manufacturing Environments

Seru, a new production organization, was developed to cope with the volatile manufacturing environments with short product life cycles, uncertain product types, and fluctuating production volumes (sometimes mass, sometimes batch, and sometimes very small volumes.). Many leading global companies such as Samsung, Sony, Canon, Panasonic, LG, and Fujitsu have adopted seru. Seru overcame a lot of disadvantages inherent in TPS and brought amazing benefits to seru users. Seru is still largely unknown outside Asia. This article introduces seru’s history and defines various seru types. The evolutionary process of developing serus is described by using industry cases. A seru pyramid is constructed to compare seru with the TPS. A just-in-time organization system is introduced. We show why applying it can bring great productivity, efficiency, and flexibility to a production organization.

scholarly journals Dynamic Pricing in a Multi-Period Newsvendor Under Stochastic Price-Dependent Demand

Mathematics ◽  
2019 ◽  
Vol 7 (6) ◽  
pp. 520 ◽  
Author(s):  
Mehran Ullah ◽  
Irfanullah Khan ◽  
Biswajit Sarkar
Keyword(s):  
Dynamic Pricing ◽  
Demand Uncertainty ◽  
New Technologies ◽  
Rapid Development ◽  
Life Cycles ◽  
Selling Price ◽  
Market Demand ◽  
Newsvendor Model ◽  
Pricing Policy ◽  
Dependent Demand

The faster growth of technology stipulates the rapid development of new products; with the spread of new technologies old ones are outdated and their market demand declines sharply. The combined impact of demand uncertainty and short life-cycles complicate ordering and pricing decision of retailers that leads to a decrease in the profit. This study deals with the joint inventory and dynamic pricing policy for such products considering stochastic price-dependent demand. The aim is to develop a discount policy that enables the retailer to order more at the start of the selling season thus increase the profit and market share of the retailer. A multi-period newsvendor model is developed under the distribution-free approach and the optimal stocking quantities, unit selling price, and the discount percentage are obtained. The results show that the proposed discount policy increases the expected profit of the system. Additionally, the stocking quantity and the unit selling price also increases in the proposed discount policy. The robustness of the proposed model is illustrated with numerical examples and sensitivity analysis. Managerial insights are given to extract significant insights for the newsvendor model with discount policy.

Integrating Enablers of Sustainable Freight Transportation and Perishable Commodity Supply Chain

2019 ◽  
Vol 10 (2) ◽  
pp. 25-48
Author(s):  
Mohit Goswami ◽  
PRS Sarma ◽  
Gopal Kumar
Keyword(s):  
Supply Chain ◽  
Freight Transportation ◽  
Life Cycles ◽  
Structural Modelling ◽  
Product Life ◽  
Interpretive Structural Modelling ◽  
Product Life Cycles ◽  
Perishable Commodity ◽  
Short Product ◽  
Retail Demand

Extant research has addressed the challenges pertaining to sustainable freight transportation and those associated with transportation of perishable commodities in disparate ways in that enablers of sustainable freight transportation have not been mapped with the considerations of transportation related to perishable commodities. This is characterized by short product life-cycles, retail demand uncertainties, traceability issues and so forth. In this backdrop, the authors' research attempts to integrate the considerations related to sustainable freight transportation with that of perishability-related aspects. To this end, this research employs interpretive structural modelling (ISM) so that enablers related to both the problems can be fused and modeled in such a way that enablers related to independent, autonomous, dependent, and linkage attributes can be identified, and their interactions can be understood.

Marketing capabilities and firm performance in fashion retailing

2003 ◽  
Vol 7 (4) ◽  
pp. 386-397 ◽  
Author(s):  
Marguerite Moore ◽  
Ann Fairhurst
Keyword(s):  
Customer Service ◽  
Structural Equation ◽  
Mail Survey ◽  
Equation Model ◽  
Life Cycles ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Firm Level ◽  
The Usa ◽  
Short Product

Intense competition and short product life cycles in fashion retailing present a number of marketing challenges for retail firms in both the USA and abroad. In order to survive in this industry, it is vital for participants to develop and leverage core marketing capabilities. The current study examines the effectiveness of different marketing capability factors in a cross‐section of the US specialty apparel and footwear retailing sector (n = 60 retail firms). Data were collected from marketing executives in a national mail survey. Specifically, marketing capabilities in image differentiation, promotions, external‐market knowledge and customer service are examined for their impact on firm level performance. A two‐stage structural equation model is used to test the study’s hypotheses. Results suggest that the most effective marketing capabilities, in terms of performance, are image differentiation and promotional capability.

scholarly journals ANALISIS DAMPAK COMPONENT COMMONALITY TERHADAP SCHEDULE INSTABILITY PADA SISTEM RANTAI PASOK SEDERHANA

2018 ◽  
Vol 1 (1) ◽  
pp. 1-6
Author(s):  
Bilal Ahmadi ◽  
Dhany Surya Ratana
Keyword(s):  
Lead Time ◽  
Demand Uncertainty ◽  
Cost Structure ◽  
Supply Chain System ◽  
Common Component ◽  
Component Commonality ◽  
Operational Conditions ◽  
Uncertainty Product ◽  
Simulation Results ◽  
The Impact

This study analyzed the impact of component commonality to schedule instability. Analysis was implemented in the use of component commonality (use of same component in different product structures) in a simple supply chain system which is consist of one manufacturer and two suppliers. Different operational conditions were introduced such as: demand uncertainty, product cost structure, product lead time, product structure and inventory policy that company utilized. The simulation results suggested that common component could reduce schedule instability in both manufacturer and suppliers. Furthermore, the results also indicated that suppliers were the more affected entities due to uncertainty rather than manufacturer

E-Waste, Chemical Toxicity, and Legislation in India

2019 ◽  
pp. 144-156 ◽  
Author(s):  
Prashant Mehta
Keyword(s):  
Developing Countries ◽  
Ground Level ◽  
Developed Countries ◽  
Legal Framework ◽  
Life Cycles ◽  
Chemical Toxicity ◽  
Comprehensive Overview ◽  
Technological Advances ◽  
Short Product ◽  
Technical Solutions

In present digital age, we constantly upgrade or replace our numerous electronic devices due to continuous technological advances and short product life cycles. With increasing “market penetration” in developing countries, “replacement market” in developed countries, and “high obsolescence rate,” a large pile of e-waste is generated either internally or it is generated in developed countries and often ends up for recycling in developing countries. The current practices of e-waste management and poor awareness in India is posing a huge challenge to the environment regulators, governments, and policy makers as much work needs to be done at ground level to achieve sustainable results This chapter provides a comprehensive overview of India's current e-waste scenario, analyzes hazardous metals and considers environmental and health risks posed by them, understands existing legal framework and strategic interventions, and explores immediate technical solutions to manage and minimize its impact on all.

Automatisierung der Betriebsmittelgestaltung*/Automation of production equipment design - Additively manufactured elements and a construction kit approach as enabler for automated design processes

2017 ◽  
Vol 107 (04) ◽  
pp. 247-252
Author(s):  
A. Prof. Kampker ◽  
K. Kreisköther ◽  
J. Wagner ◽  
R. Förstmann
Keyword(s):  
Additive Manufacturing ◽  
Automated Design ◽  
Production Equipment ◽  
Life Cycles ◽  
Modular Construction ◽  
Development Processes ◽  
Short Product ◽  
Manufacturing Technologies ◽  
Downstream Processes ◽  
Construction Kit

Kurze Produktlebenszyklen und damit notwendigerweise beschleunigte Produktentstehungsprozesse erzeugen auch auf die Betriebsmittelplanung erheblichen Zeitdruck. Das in diesem Artikel präsentierte Konzept „Rapid Fixture“ zielt darauf ab, die Bereitstellung von Betriebsmitteln – beispielsweise Montagevorrichtungen – durch automatisierte Gestaltungsprozesse zu beschleunigen. Als grundlegende Befähiger dienen dafür additiv hergestellte Elemente, ein Baukastensystem und ein Steckprinzip.   Short product life cycles lead to accelerated product development processes and also put pressure on the design of machinery equipment and fixtures. The “Rapid Fixture” concept, which is described in this article, aims to accelerate those downstream processes by an automated design approach. Basic enablers in this concept are additive manufacturing technologies for special elements, a modular construction kit for production equipment and a plug and play concept.

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