Dynamic analysis of source-based preferences: the case of imported beer in China

PurposeChinese beer consumption has undergone major changes within the last decade. The combination of a growing middle class and greater exposure to foreign products has resulted in a significant increase in beer imports. The authors examined transformations in this market and how beer preferences have changed over time. This study focuses on changes is origin-specific preferences (e.g. German beer and Mexican beer) as reflected by habit formation (i.e. dynamic consumption patterns) and changes in demand sensitivity to expenditure and prices.Design/methodology/approachThe authors estimated Chinese beer demand – differentiated by source – using a generalized dynamic demand model that accounted for habit formation and trends, as well as the immediate and long-run effects of expenditures and prices on demand. The authors employed a rolling regression procedure that allowed for model estimates to vary with time. Preference changes were inferred from the changing demand estimates, with a particular focus on changes in habit formation, expenditure allocating behaviour, and own-price responsiveness.FindingsResults suggest that Chinese beer preferences have changed significantly over the last decade, increasing for Mexican beer, Dutch beer and Belgian beer. German beer once dominated the Chinese market. However, all indicators suggest that German beer preferences are declining.Originality/valueAlthough China is the world's third largest beer importing country behind the United States and France. Few studies have focused on this market. While dynamic analyses of alcoholic beverage demand are not new, this is the first study to examine the dynamics of imported beer preferences in China and implications for exporting countries.

Bi-level optimization of long-term highway work zone scheduling considering elastic demand

Purpose More and more work zone projects come with the needs of new construction and regular maintenance-related investments in transportation. Work zone projects can have many significant impacts socially, economically and environmentally. Minimizing the total impacts of work zone projects by optimizing relevant schedules is extremely important. This study aims to analyze the impacts of scheduling long-term work zone activities. Design/methodology/approach Optimal scheduling of the starting dates of each work zone project is determined by developing and solving using a bi-level genetic algorithm (GA)–based optimization model. The upper level sub-model is to minimize the total travel delay caused by work zone projects over the entire planning horizon, whereas the lower level sub-model is a traffic assignment problem under user equilibrium condition with elastic demand. Findings Sioux Falls network is used to develop and test the proposed GA-based model. The average and minimum total travel delays (TTDs) over generations of the proposed GA algorithm decrease very rapidly during the first 20 generations of the GA algorithm; after the 20th generations, the solutions gradually level off with a certain level of variations in the average TTD, showing the capability of the proposed method of solving the multiple work zone starting date optimization problem. Originality/value The proposed model can effectively identify the near-optimal solution to the long-term work zone scheduling problem with elastic demand. Sensitivity analysis of the impact of the elastic demand parameter is also conducted to show the importance of considering the impact of elastic demand parameter.

Liner shipping network design with sensitive demand

Purpose This paper aims to examine containership routing and speed optimization for maritime liner services. It focuses on a realistic case in which the transport demand, and consequently the collected revenue from the visited ports depend on the sailing speed. Design/methodology/approach The authors present an integer non-linear programming model for the containership routing and fleet sizing problem, in which the sailing speed of every leg, the ports to be included in the service and their sequence are optimized based on the net line's profit. The authors present a heuristic approach that is based on speed discretization and a genetic algorithm to solve the problem for large size instances. They present an application on a line provided by COSCO in 2017 between Asia and Europe. Findings The numerical results show that the proposed heuristic approach provides good quality solutions after a reasonable computation time. In addition, the demand sensitivity has a great impact on the selected route and therefore the profit function. Moreover, the more the demand is sensitive to the sailing speed, the higher the sailing speed value. Research limitations/implications The vessel carrying capacity is not considered in an explicit way. Originality/value This paper focuses on an important aspect in liner shipping, i.e. demand sensitivity to sailing speed. It brings a novel approach that is important in a context in which sailing speed strategies and market volatility are to be considered together in network design. This perspective has not been addressed previously.

Designing a clothing supply chain network considering pricing and demand sensitivity to discounts and advertisement

These days, clothing companies are becoming more and more developed around the world. Due to the rapid development of these companies, designing an efficient clothing supply chain network can be highly beneficial, especially with the remarkable increase in demand and uncertainties in both supply and demand. In this study, a bi-objective stochastic mixed-integer linear programming model is proposed for designing the supply chain of the clothing industry. The first objective function maximizes total profit and the second one minimizes downside risk. In the presented network, the initial demand and price are uncertain and are incorporated into the model through a set of scenarios. To solve the bi-objective model, weighted normalized goal programming is applied. Besides, a real case study for the clothing industry in Iran is proposed to validate the presented model and developed method. The obtained results showed the validity and efficiency of the current study. Also, sensitivity analyses are conducted to evaluate the effect of several important parameters, such as discount and advertisement, on the supply chain . The results indicate that considering the optimal amount for discount parameter can conceivably enhance total profit by about 20% compared to the time without this discount scheme. When we take the optimized parameter into account for advertisement, 12% is obtained for the total profit. Based on our findings, the more the expected profit value, the higher the total amount of total profit and risk. The results of this research also provide some interesting managerial insights for managers.