Substitution Products Research Articles

Optimizing substitution of two products model for exponentially increasing demand under inflation and shortages

This study addresses the limited attention given to product substitution in inventory models. Incorporating product substitution is crucial for determining reorder points, and safety stock, enabling businesses to optimize inventory levels, reduce costs, and maintain customer satisfaction. This study introduces an economic order quantity model tailored to an inflationary environment with shortages and one-way substitution between two deteriorating product types. Through comprehensive testing, this study evaluates the model under various substitution scenarios, including partial substitution. Findings highlight the significance of product substitution in inventory management, allowing businesses to optimize inventory levels, manage costs, and ensure customer satisfaction in dynamic environments with inflation and fluctuating product availability. This model provides the firm with the necessary information to determine the optimal ordering quantity of both products to optimize total benefit and enhance supply chain efficiency. The model demonstrates substantial cost advantages, with partial substitution resulting in an average cost reduction of approximately 9% compared to no substitution and about 45% compared to full substitution. Numerical experiments validate the applicability of the proposed model.

Pricing and green quality decisions in two-stage green supply chain for substitutable green products: A game-theoretic approach

Growing businesses are concerned with doing well both environmentally and economically. Pointing out this view, this paper explores the game theoretical approach (Stackelberg and Bertrand) for a two-echelon green supply chain where the duopolistic manufacturers produce two substitutable green products and sell their products through a common retailer. The demands for both green products are functions of the selling prices and green levels (GLs). The effects of power structures on optimal price and green level decisions and associated equilibrium decisions are examined in three scenarios. Firstly, trilateral competition manufacturer-led Stackelberg (MS); secondly, retailer-led Stackelberg (RS); and thirdly, vertical collaboration, and compares the optimal decisions analytically. Our investigations show that, in addition to increasing the product’s greening level, vertical collaboration creates a win–win situation for collaboration members, whereas the manufacturer outside the collaboration experiences a decline in profits. Additionally, we find that the overall profit from vertical collaboration is greater than the sum of the individual profits corresponding to two participants in the trilateral competition models (MS and RS). Further, a selection criterion is developed for retailer to select the most suitable manufacturer for vertical collaboration. Finally, a numerical example and a sensitivity analysis are performed to determine the impact of parameters.

Semaglutide, Testosterone and Sildenafil advertising on social media: The Normalisation of lifestyle enhancement drugs

Recently, there has been a sharp increase in advertising for the ‘prescription-only’ medicines semaglutide and testosterone on social media platforms in the UK, along with the ‘pharmacy medicine’ sexual enhancer Sildenafil. These promoted adverts appear to come from both legitimate clinics in the case of testosterone replacement therapy (TRT) and Sildenafil, and illicitly operating suppliers with the attempted appearance of legitimacy in the case of semaglutide. This commentary explores the extent to which the prevalent advertising of these lifestyle medicines on social media is normalising their use, and the potential harms associated with each.For testosterone / TRT, we consider the over-medicalisation of men's general wellbeing concerns and potential harms relating to dependency if use is promoted and encouraged beyond medical need, paralleling prior observations for the sexual enhancer sildenafil. This is followed by an exploration of harms relating to black market semaglutide supply on social media to individuals who are often unaware they are not accessing legitimate pharmaceutical product, including the dangers of product contamination and substitution, as well as uninformed use linked to a lack of information on safe dosages provided by suppliers. Following these discussions, this commentary examines the potential harm reduction impacts that direct to consumer (DTC) supply of prescription medicines could have, and considers how policy could encourage these beneficial effects without further normalising or encouraging drug use in otherwise healthy individuals. However, we also note the importance of tackling prevailing cultural pressures towards lifestyle drug use and the need to address these through education and similar policies.

Nutritional implications of substituting plant-based proteins for meat: evidence from home scan data

There is growing concern among policymakers and researchers about the negative health and climate impacts of meat consumption. Consumers are encouraged to re-evaluate their dietary choices to preserve our ecosystem and reduce the burden of diet-related diseases. However, limited information is available about how price changes in animal protein sources affect plant-based protein demand and the consequences for nutrient intake and/or diet quality. The goal of the present paper is to fill this gap by explaining how consumers react to price changes in animal protein types and to present the implications for nutrition or diet quality. This paper applied the exact affine stone index implicit (EASI) Marshallian demand system to 2021 home scan panel data collated by the Kantar Worldpanel to estimate both price and expenditure elasticities. Twelve food groups of seven animal-based protein products and five plant-based protein products were considered. The results revealed that dairy and eggs are daily necessities for the people of Scotland. The demand for fish and non-dairy milk are the most sensitive to price. Estimates based on expenditure elasticities show that beef is considered a luxury and a highly substitutable product in the Scottish diet. Peas are relatively basic, essential foodstuffs. In general, increasing the price of animal protein sources will shift demand towards plant protein. On the positive side, there will be a significant reduction in cholesterol and fat purchases. However, there would also be a significant reduction in the total amount of protein, carbohydrates, and healthy fats, such as unsaturated fatty acids, purchased by the average household. This shows that increases in plant-based protein are not enough to compensate for the reductions in essential macro- and micronutrient purchases from animal protein. From the climate perspective, reductions in meat purchases could reduce emissions from production and consumption.

Towards carbon neutrality: The decoupling effect of industrial restructuring and non-fossil energy substitution on carbon emissions

China's carbon neutrality target requires early carbon decoupling of economic growth. Utilizing the input-output and programming technique, we investigate the carbon mitigation potential of industrial restructuring along with the substitution of non-fossil energy for electric production. Given the constraints of manufacturing stabilization and employment volatility magnitude, this paper finds that industrial restructuring can mitigate carbon emissions by 7.47 %. Besides, non-fossil energy substitution in electric production can strengthen the inhibiting effect, reducing carbon emissions from 7.47 % (currently about 31.5 % for non-fossil power generation) to 28.99 % (about 80 % in the future). This paper also simulates several scenarios for growth rates and estimates the prospective carbon reduction for the fourteenth Five-Year Plan in China. We indicate that the rising share of non-fossil energy is the linchpin to reducing energy-related carbon emissions, which can achieve absolute decoupling if the share of non-fossil energy in power generation reaches 67.1 % under different growth scenarios. This paper argues that carbon-based performance indicators, e.g., carbon intensity and carbon emissions, are more appropriate for local bureaucrats than energy-based ones. We provide valuable implications for the carbon decoupling path.

Some Terminally Alkenyl-substituted Porphyrins: Synthesis and Attempts of Heck Reaction Leading to Porphyrin–Azulene Dyads

: The synthesis of meso-tetraphenylporphyrin derivatives, double functionalized in one of the phenyl rings (with a nitro group and carbon substituents), is described. 5-(4- Nitroaryl)-10,15,20-triarylporphyrinates react, in the presence of a base (t-BuOK), with carbanions containing a leaving group at the carbanionic center to give products of substitution of hydrogen at ortho-position to the nitro group via vicarious nucleophilic substitution scheme. Their alkylation with allyl bromide or 4-bromobut-1-en (t-BuOK/DMF, at 0-5°C) leads to porphyrins bearing side alkyl chain with a terminal double bond in yields of up to 82%. The above-mentioned double-substituted intermediates are very convenient substrates for Heck cross-coupling reaction. In this study, the synthesis of porphyrin–azulene dyads is reported. In some cases, the formation of highly conjugated systems is observed, with moderate yield. Their structures are interesting from both the porphyrin and azulene point of view.

Nutritional Composition of Underutilized Local Food Resources for Rice Substitution and Gluten-Free Product

Nutritional Composition of Underutilized Local Food Resources for Rice Substitution and Gluten-Free Product

Retail category management under shelf-space dependent demand: The effectiveness of category captainship

Category captainship is a retail category management practice where the retailer delegates certain category decisions to a vendor, known as the category captain, to leverage the vendor’s market expertise and reduce the retailer’s workload in managing the category. We examine the effectiveness of category captainship compared to traditional retailer category management, focusing on scenarios where shelf space capacity decisions are delegated to the category captain, and demand is dependent on shelf space capacity. Our study considers two competing manufacturers, each selling a substitutable product through a common retailer. We find that when the retailer’s profit-sharing ratio is sufficiently but not excessively high, category captainship can enhance profits for both the retailer and the captain manufacturer. These profit improvements are more pronounced at intermediate values of shelf space elasticity of demand. Although the non-captain manufacturer may suffer from competitive exclusion under certain conditions, “win-win-win” outcomes in profits and sales occur when the products are highly differentiated by price or shelf-space elasticity. The retailer benefits from increasing demand elasticity of shelf space and prefers to designate the manufacturer with the higher elasticity as the category captain. When the profit-sharing ratio is determined through a retailer-led bargaining framework, the retailer benefits most by negotiating sequentially with the manufacturers, inducing the manufacturer with lower bargaining power to take on the category captain role. Our findings provide valuable insights into developing category management strategies under shelf-space elastic demand.

Retailer Information Sharing With Upstream Product Line Flexibility

With the rise of the digital economy, many firms are enhancing product line flexibility (i.e., the ability to adjust product line length or depth) to better manage demand uncertainties brought about by disruptive technologies. Concurrently, the booming digital economy has widened the information gap in supply chains. Retailers/platforms can now gather more detailed data to predict demand, but such data remains unavailable to manufacturers. This article studies how a manufacturer’s product line flexibility influences a retailer’s incentive to voluntarily share private demand information. We show that upstream product line flexibility encourages a retailer to voluntarily share information when product substitutability is low and the product line extension fee is moderate. This insight challenges the conventional belief that retailers should keep demand information private to maintain an advantage over manufacturers. Our work is the first to suggest that upstream product line flexibility can significantly motivate retailer information sharing. Additionally, we show that, although a social planner might prefer to withhold demand information from the manufacturer in the absence of product line flexibility, sharing this information becomes preferable when the manufacturer can adjust the product line length. The retailer’s decision on information sharing can align with the social planner’s in such scenarios. Furthermore, we demonstrate that, given upstream product line flexibility, except when product substitutability is not sufficiently high and the product line extension fee is moderate, the retailer’s information sharing decision is unaffected by whether the manufacturer determines the product line design before or after demand is realized and shared accordingly.

Dynamic pricing for perishable product in the presence of low-carbon preference

ABSTRACT As countries worldwide strive to implement energy conservation and emission reduction measures, modeling consumers’ low-carbon preferences and purchasing decisions has become a crucial factor in implementing dynamic pricing strategies for firms. This paper investigates the dynamic pricing problems for a single perishable product and substitutable perishable products, respectively, where consumer is affected by low-carbon preference. We first propose the decision framework of consumer choice with low-carbon preference based on the multinomial logit model. On this basis, we establish dynamic pricing models by the dynamic programming method and obtain the optimal pricing strategies. We analytically show that consumer’s low-carbon preference has a positive effect on the optimal price for a single perishable product. Meanwhile, numerical examples illustrate that consumer’s low-carbon preference has a positive effect on the optimal prices for substitutable perishable products. Finally, we give some suggestions to increase firm’s revenue when consumer’s low-carbon preference is present.

Consumer environmental awareness and green R&D subsidy policy under Cournot–Bertrand comparisons

ABSTRACT This study examines the impacts of consumer environmental awareness on green R&D subsidy policies under different market competition modes when firms adopt green strategies for emissions-reduction activities. We demonstrate that governments grant fewer subsidies to Cournot firms than Bertrand firms. Thus, Cournot firms produce lower outputs and invest less in green R&D. However, firms’ profits and social welfare are higher (lower) in Cournot than in Bertrand firms if the product substitutability is high (low). We also investigate an endogenous competition mode game and find that a Cournot (Bertrand) competition is a socially desirable equilibrium when products substitutability is relatively high (low) while consumer environmental awareness is not sufficiently high (low). These findings suggest that through appropriate green subsidies, antitrust authorities should monitor not only consumer environmental awareness but also firms’ competition mode coordination.

Sourcing Channel Decision in the Presence of Platform Encroachment with Quantity Competition

The decision of sourcing channels is a critical strategy for online retail platforms (ORs) when they encroach into the product market of the third-party retailers (3PRs). Whether the products of the OR are provided by the common supplier or the one different from that of the 3PR leads to different supply chain structures. This paper focuses on the sourcing channel decision of an encroaching OR given the sourcing channel of a 3PR. The OR may source either from the common supplier, i.e., the same supplier as that of the 3PR, or from a different supplier, i.e., one different from that of the 3PR. This paper develops two game-theoretical models to examine the sourcing channel decision of an OR in quantity competition with a 3PR on the platform. The results show that the OR’s preference for the sourcing channel is significantly affected by the production cost, product substitutability and commission rate. By comparing the performances of the OR under these two sourcing channels, we find that when the production cost of the different supplier is very low, or when the product substitutability of the different supplier is low, or when the commission rate is either very low or very high, the OR prefers to source from the different supplier. Otherwise, the OR tends to source from the common supplier. We also find that the OR’s encroachment into the sales market of a 3PR by sourcing from the common supplier will always hurt the 3PR, but the platform encroachment by sourcing from the different supplier will not necessarily hurt, especially when the supplier selected by the OR has a significant disadvantage in production cost compared to those of the 3PR. Furthermore, when the OR encroaches by sourcing from the common supplier, it becomes the largest retailer in the market; otherwise, the 3PR is the largest retailer in that market. Our results also indicate that platform encroachment by different sourcing can not only expand the sales market, but also weaken the negative effects of platform encroachment on the profit of the 3PR.

Supply analysis of mushroom in Malang, Indonesia

Background: This study aims to determine the factors that influence the supply and elasticity of mushroom supply in Malang. Method: The primary method used in this research is descriptive and analytic. The research location was chosen purposively in Malang. The type of data used is secondary data in the form of time series for 39 months. The data analysis method used is multiple regression linear analysis with the partially adjusted Nerlove Model. Findings: The results showed the variable price of mushrooms, the area of the harvested mushroom, the price of chicken meat, the price of urea fertilizer, and interest rates individually affected the supply of mushrooms in Malang. The variable of mushroom production and the average rainfall had no significant effect. Variables that are elastic in the short term are the area of the harvested mushroom, and elastic in the long term are the area of the harvested mushroom and the price of chicken meat. Conclusion: The mushroom farmer needs production planning to anticipate increases in the price of substitution products. Mushroom farmers are advised to make storage for supply and expand the mushroom house with more substantial materials to increase supply. Novelty/Originality of this study: This analysis provides an in-depth understanding of supply dynamics, identifying key factors that influence supply elasticity in the short and long term. This study offers practical recommendations for mushroom farmers to optimize their production in the face of market fluctuations.

Innovative educational and research center for monitoring forest resources of Siberia based on laser and microwave aerospace imaging

The possibilities of creating an innovative educational and scientific center for monitoring forest resources in Siberia on the basis of the Department of Space Facilities and Technologies of the Siberian State University of Science and Technology named after Mikhail Fedorovich Reshetnev are discussed, with the aim of training highly qualified engineering personnel and conducting promising scientific research in the field of monitoring, modeling, forecasting and management of forest resources. Methodological solutions and algorithms for three-dimensional modeling of forest structure and dynamics based on laser scanning data, digital aerial and space photography are proposed. These methods contribute to operational monitoring and can significantly reduce the cost of monitoring the condition and use of forest resources over the vast territory of Siberia. Remote sensing data is presented in the form of a geotransformed database and digital photo map, compatible in formats with computer-aided design systems and with the main geographic information systems – ArcView, ArcINFO, MapINFO. The innovative monitoring center will be used for operational state control and monitoring of forest management, the state of forest lands, forest management and forest inventory, solving problems of ecology and environmental management, geoecology, formation of a forest resource inventory, aerospace methods for studying natural resources and territories, information technology. Solving these problems will allow for the training of highly qualified specialists. The center's specialists plan to create information technologies for remote sensing of natural objects with the aim of import substitution of foreign software products. The main scientific directions of the created center: development and research of methods for system analysis of large-scale multidimensional remote sensing data based on nonparametric decision-making algorithms and parallel computing technologies; testing hypotheses about the distributions of large-volume remote sensing data based on nonparametric nuclear-type pattern recognition algorithms; detection of compact groups of large-volume remote sensing data corresponding to unimodal fragments of the joint probability density of multivariate random variables.

Role of Sustainable Alternatives to Petrochemical Based Plastics in Achieving the SDGS

A significant transition from fossil fuel-based economy to one based on biomass is occurring as a result of global warming, socioeconomic challenges, and new policies, which are propelling decarbonisation process across industries. The usage of bioplastics is the most effective way to address the issue of plastic trash. Bioplastics are a safe and sustainable substitute for petrochemical or traditional plastics that lessen our reliance on fossil fuels. The strategic substitution of sustainable products for those derived from petrochemicals not only promotes environmental conservation but also advances the achievement of several sustainable development goals (SDGs). Post-treatment methods, such as photolysis, thermochemical treatment, and biodegradation were used in this study. These alternatives support in lowering greenhouse gas emissions and increasing resource efficiency, which greatly supports SDGs 12 and 15, Responsible Consumption and Production and Life on Land, respectively. This study explores how the (SDGs) could be implemented effectively and makes it clear that sustainable consumption and production (SCP) should be given significant consideration in their production.

Technology verification of Portland cement clinker production driven by concentrated solar energy directly

Fuel substitution is an important measure for heat substitution and carbon emissions reduction in cement production by using low-carbon fuels such as solid waste, natural gas, biomass energy and solar energy. In this study, a technology that uses concentrated solar energy to directly drive solar cement clinker production is proposed and its feasibility is experimental demonstrated. The results showed that cement clinker could be burned using concentrated solar energy. Because the sintering rate is rapid, rapid burning and/or under-burning also occurs during the sintering process, which causes the clinker structure exhibit a sheet structure. The chemical composition analysis showed that the total mass fraction of dicalcium silicate (C2S) and tricalcium silicate (C3S) exceeded 70 %, the mass fraction of f-CaO was higher than the standard value (≤1.5 %). Controlling the sintering temperature and time, and increasing the cooling rate are significant factors in ensuring the quality of the cement clinker.

The AI revolution with 21st century skills: Implications for the wage inequality and technical change

AbstractWe construct a three‐level constant elasticity of substitution production model. Labour is split into three components: (i) low‐skilled labour, (ii) high‐skilled labour with a traditional education background, and (iii) high‐skilled labour with an AI‐based education background. Rising use of automation in production will cause a rise in the skill premium (wages of both types of high‐skilled workers relative to low‐skilled workers) and AI skill premium (wages of high‐skilled labour with an AI‐based education relative to those with a traditional education background). Dependent on the value of the elasticity, automation may favour high‐skilled workers with an AI‐based education background.

Fish species authentication in commercial fish products using mass spectrometry and spectral library matching approach

Seafood fraud has become a global issue, threatening food security and safety. Adulteration, substitution, dilution, and incorrect labeling of seafood products are fraudulent practices that violate consumer safety. In this context, developing sensitive, robust, and high-throughput molecular tools for food and feed authentication is becoming crucial for regulatory purposes. Analytical approaches such as proteomics mass spectrometry have shown promise in detecting incorrectly labeled products. For the application of these tools, genome information is crucial, but currently, for many marine species of commercial importance, such information is unavailable. However, when combining proteomic analysis with spectral library matching, commercially important fish species were successfully identified, differentiated, and quantified in pure muscle samples and mixtures, even when genome information was scarce. This study further tested the previously developed spectral library matching approach to differentiate between 29 fish species from the North Sea and examined samples including individual fish, laboratory-prepared mixtures and commercial products. For authenticating libraries generated from 29 fish species, fresh muscle samples from the fish samples were matched against the reference spectral libraries. Species of the fresh fish samples were correctly authenticated using the spectral library approach. The same result was obtained when evaluating the laboratory-prepared mixtures. Furthermore, processed commercial products containing mixtures of two or three fish species were matched against these reference spectral libraries to test the accuracy and robustness of this method for authentication of fish species. The results indicated that the method is suitable for the authentication of fish species from highly processed samples such as fish cakes and burgers. The study shows that current and future challenges in food and feed authentication can efficiently be tackled by reference spectral libraries method when prospecting new resources in the Arctic.

Tobacco Taxation in Spain: A tax laggard with a brighter possible future.

In recent years tobacco taxation in Spain has regressed, with its Tobacconomics tax scorecard falling from 3.9 points (out of 5) in 2014, to only 2.625 in 2020. The objective of this research is to provide a detailed analysis of the causes behind this deterioration and identify possible ways forward for reversing this trend. A retrospective 2014-2022 analysis of manufactured cigarettes (FM) and roll-your-own tobacco (RYO) markets including tax structure/rates, affordability, retail price gaps across products, and price differentials with bordering countries. A market level simulation model to 2028 studied the impact of various tax policy scenarios on smoking prevalence, premature deaths averted, smoking intensity, product substitution, government revenue, sales, and industry profit. A lack of tax increases in a context of inflation and income growth during the past 8 years means FM and RYO have become 13% more affordable, with a constant differential of €2 between 20 FM and RYO sticks, and the price gap between Spain and neighbouring France increased. Modelling of two realistic reform scenarios that reduce/eliminate the price gap between FM and RYO suggest substantial increases in government revenues and up to 700,000 fewer smokers and 210,000 fewer premature deaths. Current European Union legislation on tobacco taxes leaves ample room for much needed tobacco tax reform. For the sake of both public health and the economy, Spain should increase its Minimum Excise Tax. This would not only save lives, but also bring much needed revenue for the government. The stance of Spain on tobacco taxes has deteriorated recently. This study argues that the failure of successive governments to raise minimum taxes in an inflationary context has made tobacco products more affordable, and quantifies the improvements in smoking prevalence and excise revenue that would accrue if the authorities act urgently increasing rates within realistic limits.Spain is representative of European countries where government inaction has rendered minimum tobacco taxes obsolete. Given the postponement of the revision of the European Union Tobacco Tax Directive, this study highlights the need to act unilaterally within the existing legal framework.

Bamboo Breeding Strategies in the Context of “Bamboo as a Substitute for Plastic Initiative”

Bamboo breeding strategies are essential in realizing “Bamboo as a Substitute for Plastic (BASP)”. This review article aims to explore the crucial role of breeding strategies in achieving the substitution of plastic products with bamboo as outlined under the BASP Initiative. Firstly, we address the issue of plastic pollution, along with the background of reducing the market share and demand for plastic products. It categorizes the types of bamboo products that can fully or partially replace plastic products in various categories, such as daily necessities, building materials, and industrial products. Then, we investigate which bamboo species can replace which plastic products and propose the need for bamboo improvement. Furthermore, it presents data from positioning observation research stations for bamboo forest ecosystems in China and outlines the essential traits necessary for bamboo substitution, including characteristics like long internode length, extended fiber length, thick culm wall, and optimal cellulose-to-lignin content ratio, among others. Finally, we discuss breeding methods and genetic improvement as key strategies to achieve bamboo substitution and suggest the potential of enhancing bamboo traits to serve as a viable replacement source for plastics. This comprehensive approach aims to enhance bamboo’s growth features and physical properties to meet the criteria for substituting bamboo for plastics effectively.