Data-Driven Order Policies with Censored Demand and Substitution in Retailing

Sachs, Anna‐Lena

doi:10.1007/978-3-319-13305-8_5

Cited by 4 publications

(4 citation statements)

References 33 publications

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“…Over the last decade, questions have been raised on how to adapt order rules for this two‐product case and how to define service levels, as customer satisfaction cannot be measured simply by the availability of one product . When substitution behaviour of consumers is incorporated in the replenishment decisions, profit may increase . Moreover, for perishable products, a waste decrease may occur, as combining demand for several products can decrease relative uncertainty in demand.…”

Section: Introductionmentioning

confidence: 99%

“…[5][6][7][8] When substitution behaviour of consumers is incorporated in the replenishment decisions, profit may increase. 6,9,10 Moreover, for perishable products, a waste decrease may occur, as combining demand for several products can decrease relative uncertainty in demand. Retailers want to serve consumers at any time of the day and have the tendency to hold high inventory levels for every product.…”

Section: Introductionmentioning

confidence: 99%

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On computing optimal policies in perishable inventory control using value iteration

Hendrix

Ortega

Haijema

et al. 2019

Comp and Math Methods

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As a large part of world food production spoils/expires before consumption, reduction of food waste by optimizing order policies in retail is of importance. We sketch here the computational burden of trying to obtain the optimal order quantities with the process of value iteration for a retailer situation with highly perishable products. It appears that waste can be reduced if retailers follow the optimal policy compared to an easier order‐up‐to‐level policy. When there is willingness to substitute a product for another if the desired product is out of stock, the complexity increases drastically. Basically, one has to take the stock of both products into account. The necessary probabilistic analysis and computational aspects are described in this paper.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

On computing optimal policies in perishable inventory control using value iteration

Hendrix

Ortega

Haijema

et al. 2019

Comp and Math Methods

View full text Add to dashboard Cite

show abstract

“…Two studies are known which include empirical research, both Kök & Fisher (2007) and Sachs (2015) study sales data of retailers to find the substitution ratios between the products. Kök & Fisher (2007) uses these substitution fractions found to optimize both inventory and assortment decisions.…”

Section: Replenishment Including Substitution For Perishable Productsmentioning

confidence: 99%

“…It has been shown in previous research (e.g. Chen et al, 2015;Sachs, 2015;Hübner et al, 2016) that incorporating stock-out-based substitution in the replenishment decisions, can increase profit. However, it is not yet fully clear to what extend the trade-off between profit, waste and service levels are affected.…”

Section: Introductionmentioning

confidence: 96%

Reduce and re-use: studying retailers' food waste from an Operations Research perspective

Buisman

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In general, a distinction is made between food loss and food waste; food loss is the decrease in edible food mass, which would otherwise be categorised as suitable for human There are many causes of food waste at the retailer, but three main sources can be identified (Teller et al., 2018): 1. Consumer in-store behaviour and consumer demand 2. Store management, i.e., replenishment and assortment decisions Retailers sell usually many more than two products. Therefore, in Chapter 4 the problem is extended to a multi-product case with multiple substitution attempts considering both the replenishment and the assortment decisions are considered. The focus of this chapter is to provide a solution framework able to deal with the complexity of combined inventory decisions for multiple products. Due to the complexity arising with this extension to multiple products, a single period model is used.Although food waste can be reduced at the retailer, it is impossible to reduce this amount to zero. It is therefore important to consider ways to re-use food leftovers. As mentioned before, a limited number of studies have addressed this topic; therefore, in Chapter 5, a study of the use of donated surplus food by a charity organisation is presented. Al-This chapter is published as:

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Optimization of Inventory Management Process

Mandel

Granin

2018

2018 8th International Conference on Logistics, Informatics and Service Sciences (LISS)

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Data-Driven Order Policies with Censored Demand and Substitution in Retailing

Cited by 4 publications

References 33 publications

On computing optimal policies in perishable inventory control using value iteration

On computing optimal policies in perishable inventory control using value iteration

Reduce and re-use: studying retailers' food waste from an Operations Research perspective

Optimization of Inventory Management Process

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