Evaluation of a new supply strategy based on stochastic programming for a fashion discounter

Fashion discounters face the problem of ordering the right amount of pieces in each size of a product. The product is ordered in pre-packs containing a certain size-mix of a product. For this so-called lot-type design problem, a stochastic mixed integer linear programm was developed, in which price cuts serve as recourse action for oversupply. Our goal is to answer the question, whether the resulting supply strategy leads to a supply that is significantly more consistent with the demand for sizes compared to the original manual planning. Since the total profit is influenced by too many factors unrelated to sizes (like the popularity of the product, the weather or a changing economic situation), we suggest a comparison method which excludes many outer effects by construction. We apply the method to a real-world field study: The improvements in the size distributions of the supply are significant.Comment: 5 pages, 1 tabl

Who Pays for our Clothing from Lidl and KiK?

A report on the impact of buying practices of retail discounters Lidl and KiK on wages and working conditions in six selected suppliers in Bangladesh, as well as in German retailing as a whole

The Top-Dog Index: A New Measurement for the Demand Consistency of the Size Distribution in Pre-Pack Orders for a Fashion Discounter with Many Small Branches

We propose the new Top-Dog-Index, a measure for the branch-dependent historic deviation of the supply data of apparel sizes from the sales data of a fashion discounter. A common approach is to estimate demand for sizes directly from the sales data. This approach may yield information for the demand for sizes if aggregated over all branches and products. However, as we will show in a real-world business case, this direct approach is in general not capable to provide information about each branch's individual demand for sizes: the supply per branch is so small that either the number of sales is statistically too small for a good estimate (early measurement) or there will be too much unsatisfied demand neglected in the sales data (late measurement). Moreover, in our real-world data we could not verify any of the demand distribution assumptions suggested in the literature. Our approach cannot estimate the demand for sizes directly. It can, however, individually measure for each branch the scarcest and the amplest sizes, aggregated over all products. This measurement can iteratively be used to adapt the size distributions in the pre-pack orders for the future. A real-world blind study shows the potential of this distribution free heuristic optimization approach: The gross yield measured in percent of gross value was almost one percentage point higher in the test-group branches than in the control-group branches.Comment: 22 pages, 15 figure

Urban Distribution: The Impacts of Different Governmental Time-Window Schemes

Local authorities increasingly use time-access regulations to improve social sustainability issues, such as the attractiveness of a city centre, the shopping climate, or to reduce the nuisance caused by urban freight transport. However, these time-windows increase delivery costs and the environmental burden. This paper evaluates five different time-window schemes on their social, environmental, and economic impacts. The first scheme examines the current time-window policy scheme. In the second scheme time-windows are harmonized between different cities. The third scheme moves all deliveries to the night. The fourth and fifth schemes evaluate the consequences of the proposal by the Dutch committee for urban distribution (committee Sakkers). The fourth scheme includes noise-legislation for delivering during the night, the fifth does not. This research includes interviews with several Dutch policy-making officials and is further based on a multiple-case study of fourteen large retail chains in different sectors and with different formulas. The results show that the current time-window scheme performs worst. The best time-window scheme would be a combination of the proposal of the committee Sakkers and the harmonization scenario.City Logistics;Retail Logistics;Sustainability;Time-Window Regulation;Urban Goods Movement

RFID in Retailing and Customer Relationship Management

Radio Frequency Identification (RFID) is a hot topic in retail supply chain management [Behrenbeck, Küpper et al. 2004]. Yet, a recent study predicts “that the true benefits of RFID for retailers will be in enhanced marketing opportunities” [Sharpless 2005]. Research on RFID for marketing purposes is still rare giving the opportunity for more specific research on how RFID will influence business to consumer (B2C) marketing and services [Curtin, Kauffman et al. 2005]. Apparel retailing will most likely be one of the first industries to adopt item level tagging and thus benefit from those new marketing opportunities [Chappell, Durdan et al. 2003; Kurt Salmon Associates 2005]. This paper investigates the opportunities of RFID to enhance B2C marketing of apparel retailers. The paper presents six out of 17 developed RFID applications that support relationship marketing of apparel retailers to better recruit, retain, and recover customers. The RFID applications are classified by the marketing goals they fulfill and the marketing phase they support. The authors describe the use of each RFID application exemplified, and evaluate the additional value for the customer company relationship as well as the feasibility for apparel retailers to implement the application into practice

Evaluating Bundled Discounts

This article identifies and critiques five attempts courts and commentators have made at articulating such an evaluative approach and, finding each approach lacking, proposes an alternative evaluative approach. The proposed approach would presume the legality of above-cost bundled discounts but would permit that presumption to be rebutted by a plaintiff that proved certain facts demonstrating that it had fully exhausted its competitive options and was, or was likely to become, as efficient as the discounter. The recommended approach would be easily administrable and would include clear safe harbors to ensure that procompetitive bundled discounting is not discouraged

Aldi’s Clothing Bargains- Discount buys discounting standards?

CCC_2007_12_Aldi_s_clothing_bargains.pdf: 1435 downloads, before Oct. 1, 2020

Resale Price Maintenance After Monsanto: A Doctrine Still at War With Itself

In this article, two enforcement officials at the Federal Trade Commission reexamine resale price maintenance in light of the Supreme Court\u27s recent decision in Monsanto Co. v. Spray-Rite Service Corp. Commissioner Calvani and Mr. Berg consider both antitrust law and economic policy in their review of the history of resale price maintenance; they point out the chronic inconsistencies to which this antitrust regime has been subject, and identify these same inconsistencies at work in Monsanto. The authors set forth three theses with respect to Monsanto: first, that the Court intimated a willingness to reconsider at some future time the per se standard of illegality for resale price maintenance; second, that the Court recognized the continuing vitality of the Colgate doctrine, which had been seriously questioned in recent years; and, third, that the Monsanto Court unsuccessfully attempted to delineate a workable evidentiary standard applicable to communications between sellers and resellers when it is alleged that such communications constitute an illegal contract, combination, or conspiracy under section one of the Sherman Act. The authors suggest that, taken together, these elements in Monsanto display a doctrine at war with itself. The authors conclude by examining the possible implications of the Monsanto decision for the future direction of the law of resale price maintenance

Who pays for our clothing from Lidl and Kik?

CCC_LIDL_KIK_ENG__3_.pdf: 3030 downloads, before Oct. 1, 2020

Exploring retailers' sensitivity to local sustainability policies

Local governments in Western Europe increasingly use city time-access regulations to improve social sustainibility. These regulations significantly influence the distribution process of retail chain organizations. This paper studies the impact of governmental timewindow pressure on retailers’ logistical concept and consequential financial and environmental distribution performance. We determine which dimensions in the retailer’s logistical concept determine its cost and emission sensitivity to increasing time-win