Using Hybrid Agent-Based Systems to Model Spatially-Influenced Retail Markets

One emerging area of agent-based modelling is retail markets; however, there are problems with modelling such systems. The vast size of such markets makes individual-level modelling, for example of customers, difficult and this is particularly true where the markets are spatially complex. There is an emerging recognition that the power of agent-based systems is enhanced when integrated with other AI-based and conventional approaches. The resulting hybrid models are powerful tools that combine the flexibility of the agent-based methodology with the strengths of more traditional modelling. Such combinations allow us to consider agent-based modelling of such large-scale and complex retail markets. In particular, this paper examines the application of a hybrid agent-based model to a retail petrol market. An agent model was constructed and experiments were conducted to determine whether the trends and patterns of the retail petrol market could be replicated. Consumer behaviour was incorporated by the inclusion of a spatial interaction (SI) model and a network component. The model is shown to reproduce the spatial patterns seen in the real market, as well as well known behaviours of the market such as the "rocket and feathers" effect. In addition the model was successful at predicting the long term profitability of individual retailers. The results show that agent-based modelling has the ability to improve on existing approaches to modelling retail markets.Agents, Spatial Interaction Model, Retail Markets, Networks

The quest for corporate growth

Thesis (M.S.)--Massachusetts Institute of Technology, Sloan School of Management, 1996.Includes bibliographical references (leaves 116-122).by Gabriel D. Obrador Ramos and Edmundo E. Ruiz Rodriguez.M.S

System Dynamic Approach to Assessing New Product Introduction: The Case of Functional Foods in the United States

Health care costs particularly those associated with chronic health conditions such as cancer have been significantly increasing for both individuals and governments in the past decades, prompting the demand for preventative medical initiatives, such as functional food, and spawning a new industry in the food sector functional food industry. This article conducts a feasibility study for a firm entering the functional food industry with a specific product, Avert®, CLA-enhanced cheese. It also assesses alternative market conditions under which the firm will be successful. A system dynamics framework is used for the analyses. The results show that a firm can be profitable in the functional food industry provided that it satisfies certain pricing and target market conditions. The results indicate that the extent to which the market differentiates Avert® from commodity cheese, and hence the premium it pays, is a critical success factor for the firm introducing the product.Agribusiness,

A Study of E-Business/E-Manufacturing Models

Traditional business methods are taking a drastic turn and changing to digitized businesses. Information and communication technology is being integrated into orthodox business practices and giving birth to e-business. E-business in turn, is looking up to e-business models for dynamic integration. The e-business concept was first explored. It was broken down into its smaller entities to make for a clearer and better understanding. Components of an electronic business were identified, and e-commerce was understood to be a subset of e-business. It was established that for a business to be e-business enabled, it required information and communication technology (ICT) to be integrated into its brick and mortar business practice. This showed that the e-business concept was not replacing traditional business practices but improving on it. The e-manufacturing business practice was also researched. This practice was found to be in essence e-business, but in the manufacturing context. It showed that e-manufacturing made for a dynamic integration of the complex manufacturing business practice in real-time. It linked shop floors to top floors, as well as all the other areas of the whole manufacturing supply chain. Adequate relevance was established for designing e-business and e-manufacturing models. This was achieved through rigorous literature review as well as a questionnaire survey. A hypothesis design and test based on the literature review was made to ascertain what models are utilized and in what context. Currently used models in different company sectors were discovered, and their subsequent benefits identified. Also reasons behind the adoption of the different models in the firms investigated were identified. Barriers associated with the e-business practice as well as the implementation of an e-business model were also identified. A measurement system was utilized to ascertain if the investigated models met that stated in the literature (i.e. product innovation, infrastructure and the network of partners, customer relation, and finance). This was adopted from that presented in the literature review. Based on the study, a conclusion was drawn and recommendations suggested.

An Investigation into Factors Affecting the Chilled Food Industry

With the advent of Industry 4.0, many new approaches towards process monitoring, benchmarking and traceability are becoming available, and these techniques have the potential to radically transform the agri-food sector. In particular, the chilled food supply chain (CFSC) contains a number of unique challenges by virtue of it being thought of as a temperature controlled supply chain. Therefore, once the key issues affecting the CFSC have been identified, algorithms can be proposed, which would allow realistic thresholds to be established for managing these problems on the micro, meso and macro scales. Hence, a study is required into factors affecting the CFSC within the scope of Industry 4.0. The study itself has been broken down into four main topics: identifying the key issues within the CFSC; implementing a philosophy of continuous improvement within the CFSC; identifying uncertainty within the CFSC; improving and measuring the performance of the supply chain. However, as a consequence of this study two further topics were added: a discussion of some of the issues surrounding information sharing between retailers and suppliers; some of the wider issues affecting food losses and wastage (FLW) on the micro, meso and macro scales. A hybrid algorithm is developed, which incorporates the analytic hierarchical process (AHP) for qualitative issues and data envelopment analysis (DEA) for quantitative issues. The hybrid algorithm itself is a development of the internal auditing algorithm proposed by Sueyoshi et al (2009), which in turn was developed following corporate scandals such as Tyco, Enron, and WorldCom, which have led to a decline in public trust. However, the advantage of the proposed solution is that all of the key issues within the CFSC identified can be managed from a single computer terminal, whilst the risk of food contamination such as the 2013 horsemeat scandal can be avoided via improved traceability

The moderating effect of brand orientation on inter-firm market orientation and performance

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace

Low volume store planning for workload balancing and truckload

Okutkan, Caner (Dogus Author) -- Çelepçıkay, Ömer (Dogus Author) -- Çimen, Egemen Berki (Dogus Author)In this study, it is aimed to decrease the number of days planned to be shipped in stores with low sales volume, to create a balanced work load and to increase vehicle occupancy capacity . Particularly, Less than Truckload problem is analyzed and model in this study. The techniques used in this study showed that adaptability can be achieved with shipment and store planning as well as green supply chain environment to minimize Less than Truckload (LTL) as well as gas consumption. A mathematical model was created in the direction of multi objective problem and solved in the GAMS environment. Moreover, scenario analyzes were made and the study was tested on five specially identified regions on Turkey

When and Why Does it Pay to be Green?

According to widely held beliefs, environmental protection is associated with an increase in costs for businesses imposed by the government. Over the last decade, this view has been challenged by a number of analysts. They have identified many possibilities, from a conceptual or theoretical point of view, whereby firms could offset the costs of sustaining the environment with higher profits. First, a better environmental performance can lead to an increase in revenues through the following channels: i) a better access to certain markets; ii) the possibility to differentiate products, and iii) the possibility to sell pollution-control technology. Second, a better environmental performance can lead to cost reductions in the following categories: iv) regulatory costs; v) cost of material, energy and services; vi) cost of capital, and vii) cost of labour. The purpose of this report is to provide empirical evidence supporting the existence of these opportunities and to assess their magnitude. For each of the seven possibilities identified above, we provide a discussion of the mechanisms involved and a systematic view of the empirical evidence available. The objective of this paper is not to show that a reduction of pollution is always accompanied by a better financial performance, it is rather to argue that the expenses incurred to reduce pollution can sometimes be partly or completely compensated by gains made elsewhere. Through a systematic examination of all the possibilities, we want to identify the circumstances most likely to lead to a “winwin” situation, i.e., better environmental and financial performance.