Tools for modelling support and construction of optimization applications

We argue the case for an open systems approach towards modelling and application support. We discuss how the 'usability' and 'skills' analysis naturally leads to a viable strategy for integrating application construction with modelling tools and optimizers. The role of the implementation environment is also seen to be critical in that it is retained as a building block within the resulting system

Making Category Management More Practical

Agribusiness,

From supply chains to demand networks. Agents in retailing: the electrical bazaar

A paradigm shift is taking place in logistics. The focus is changing from operational effectiveness to adaptation. Supply Chains will develop into networks that will adapt to consumer demand in almost real time. Time to market, capacity of adaptation and enrichment of customer experience seem to be the key elements of this new paradigm. In this environment emerging technologies like RFID (Radio Frequency ID), Intelligent Products and the Internet, are triggering a reconsideration of methods, procedures and goals. We present a Multiagent System framework specialized in retail that addresses these changes with the use of rational agents and takes advantages of the new market opportunities. Like in an old bazaar, agents able to learn, cooperate, take advantage of gossip and distinguish between collaborators and competitors, have the ability to adapt, learn and react to a changing environment better than any other structure. Keywords: Supply Chains, Distributed Artificial Intelligence, Multiagent System.Postprint (published version

A retail category management model integrating shelf space and inventory levels

A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment, shelf space allocation and common review period. The model takes into consideration several constraints such as the available shelf space, backroom inventory space, retailer's financial resources, and estimates of rate of demand for products based on shelf space allocation and competing products. The review period can take any values greater than zero. Results of the proposed model were compared withthe results of the current industry practice for randomly generated product assortments of size six, ten and fourteen. The model also outperformed the literature benchmark. The paper demonstrates that the optimal common review period is flexible enough to accommodate the administrative restrictions of delivery schedules for products, without significantly deviating from the optimal solution

A Roadmap to Reduce U.S. Food Waste by 20 Percent

The magnitude of the food waste problem is difficult to comprehend. The U.S. spends $218 billion a year -- 1.3% of GDP -- growing, processing, transporting, and disposing of food that is never eaten. The causes of food waste are diverse, ranging from crops that never get harvested, to food left on overfilled plates, to near-expired milk and stale bread. ReFED is a coalition of over 30 business, nonprofit, foundation, and government leaders committed to building a different future, where food waste prevention, recovery, and recycling are recognized as an untapped opportunity to create jobs, alleviate hunger, and protect the environment -- all while stimulating a new multi-billion dollar market opportunity. ReFED developed A Roadmap to Reduce U.S. Food Waste as a data-driven guide to collectively take action to reduce food waste at scale nationwide.This Roadmap report is a guide and a call to action for us to work together to solve this problem. Businesses can save money for themselves and their customers. Policymakers can unleash a new wave of local job creation. Foundations can take a major step in addressing environmental issues and hunger. And innovators across all sectors can launch new products, services, and business models. There will be no losers, only winners, as food finds its way to its highest and best use

Demand Estimation at Manufacturer-Retailer Duo: A Macro-Micro Approach

This dissertation is divided into two phases. The main objective of this phase is to use Bayesian MCMC technique, to attain (1) estimates, (2) predictions and (3) posterior probability of sales greater than certain amount for sampled regions and any random region selected from the population or sample. These regions are served by a single product manufacturer who is considered to be similar to newsvendor. The optimal estimates, predictions and posterior probabilities are obtained in presence of advertising expenditure set by the manufacturer, past historical sales data that contains both censored and exact observations and finally stochastic regional effects that cannot be quantified but are believed to strongly influence future demand. Knowledge of these optimal values is useful in eliminating stock-out and excess inventory holding situations while increasing the profitability across the entire supply chain. Subsequently, the second phase, examines the impact of Cournot and Stackelberg games in a supply-chain on shelf space allocation and pricing decisions. In particular, we consider two scenarios: (1) two manufacturers competing for shelf space allocation at a single retailer, and (2) two manufacturers competing for shelf space allocation at two competing retailers, whose pricing decisions influence their demand which in turn influences their shelf-space allocation. We obtain the optimal pricing and shelf-space allocation in these two scenarios by optimizing the profit functions for each of the players in the game. Our numerical results indicate that (1) Cournot games to be the most profitable along the whole supply chain whereas Stackelberg games and mixed games turn out to be least profitable, and (2) higher the shelf space elasticity, lower the wholesale price of the product; conversely, lower the retail price of the product, greater the shelf space allocated for that product

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain