Retail Network Research Articles

Nutrional value of the national dairy product kurut and its place in the nutrition of adolescents of the Kyrgyz Republic

Kurut is a universal fermented milk product that is added as a seasoning to various dishes and is consumed as a separate meal. It is a good source of macro- and micronutrients in an easily assimilated form, contributing to the maintenance of beneficial intestinal microflora. The product is popular among children and adults in Kyrgyz Republic, and is in great demand as a healthy food. In this regard, the study of the nutritional value and quality of kurut is an urgent task. The purpose of the work was to study the nutritional value of the national fermented milk product kurut, and to assess its place in the daily diet of adolescents. Material and methods. The content of protein, fats, mineral substances and table salt in 8 types of most common kurut has been determined. The determination of protein was carried out by the Kjeldahl method, fat - by the Soxhlet method, mineral substances - by the atomic emission spectrometry method, and sodium chloride - by the titrimetric method. To study the eating behavior and frequency of kurut consumption, a questionnaire survey of 7251 schoolchildren aged 14 to 18 from different regions of the Kyrgyz Republic (41.8% of boys and 58.2% of girls) has been conducted. Results and discussion. According to the results of the survey, all teenagers noted that they had tasted kurut at least once and they liked its salty and sour taste. The total number of schoolchildren consuming kurut averaged 80.1% (87.3% in the southern regions, 80.6% in highlands and 72.5% in the northern regions). The proportion of children who consume kurut daily and do not consume kurut was the same and equals 20.9 and 19.9%, respectively. Regular kurut consumption (1-2 times a week and 1-2 times a month) was noted with the same frequency in adolescents (on average, 29.4 and 29.8%, respectively). The adolescents indicated that they buy kurut in a retail network and from private traders in markets and other accessible outlets. According to the results of our work, the mass fraction of protein in the studied kurut samples averaged 14.6±0.1% (the standard indicator is not less than 16.0%), which covers the daily requirement in protein by an average of 16.9%. Fat mass fraction was 1.8±0.1% (standard value 1.0-26.0%) and covered the daily requirement in fats by an average of 2.05%. Mineral composition of kurut practically corresponded to the composition of dairy products, however, the content of table salt was increased, especially in the home kurut (3.5 times) from the established standards (2-3%). In industrial kuruts "Kinder" and "Baatyr", the content of table salt was almost 2 fold lower than in home kurut, amounting to 5.8-5.9%. Conclusion. Kurut is a national fermented milk product popular among teenagers, which is a good source of minerals and trace elements. The increased content of table salt, especially in home-made kurut, indicates the need for explanatory communication work among children and adolescents, since frequent consumption of kurut can cause the development of alimentary diseases in childhood and in the subsequent years of a person's life. It is also necessary to carry out sanitary and educational work among the population to comply with the technology for preparing the product, especially by reducing the amount of added table salt.

Ownership Unbundling of Electricity Distribution Networks

Traditional restructuring of power markets has focused on legally separating monopolistic transmission and distribution infrastructure with sufficient regulatory oversight to ensure non-discriminatory access to networks, and transparent and cost-reflective tariffs. There is consensus that ownership separation for transmission assets is beneficial for competition and transparency. However, at the distribution level the benefits of going beyond legal unbundling are questionable. This paper reviews the theoretical arguments for ownership unbundling and summarises the findings from 23 academic papers and consulting reports. In addition, this paper empirically demonstrates that forced distribution ownership unbundling in New Zealand (from 1998) and the Netherlands (from 2009) did not increase retail competition and did not increase network quality. It resulted in significant one-off and structural costs. The combination of increasingly active distribution networks with bi-directional power flows from distributed renewables, in combination with the digitalisation of energy supply and creation of distribution data platforms, suggests that interaction between networks and customers, traditionally separated from a regulatory and competition perspective may become more interlinked in future. Policymakers should therefore assess a broader set of policy measures, taking into account this changing network landscape, when focusing on increasing retail competition and network quality.

СОЦИАЛЬНО-ЭКОНОМИЧЕСКИЙ АСПЕКТ РОЗНИЧНЫХ ТОРГОВЫХ СЕТЕЙ В РЕГИОНЕ (НА ПРИМЕРЕ КОСТРОМСКОЙ ОБЛАСТИ)

The article examines the state of network retail trade carried out by federal and regional trade enterprises and its role in the economy of a particular region of Kostroma region. The role of this type of economic activity revealed in the socio-economic system. The most important feature is plurality of trading formats. The aggressive nature shown of the activities federal retail networks. It manifested in a significant growth in retail outlets of these structures. The main directions of attraction are a wide range of products, flexible pricing policy, use of modern technologies, expansion of loyalty programs, including the use of mobile app. The specific of the positioning have been determined for Magnit, X5 Retail Group and LENTA. Competitors to federal retail networks are several trading enterprises of Kostroma networks retailers. They continue to develop dynamically by opening shops not only in regional cities, but also in neighboring regions. Moreover, each of them has a certain strategy focused on a specific segment of consumers. The regional trade networks cooperation with local producers. It allows them to compete with federal retail networks. A comparative analysis of retail prices carried out for socially significant food and non-food products, which made it possible to assess the degree of attractiveness of the services of retail trade networks, federal and regional levels. The experience of the introducing modern formats of trade services for buyers has been summarised by federal and local market. The main directions of improving trade has been established by regional players.

СИНЕРГЕТИЧНІ МЕТОДИ В ПРОГНОЗУВАННІ ДИНАМІКИ ПРОЦЕСІВ ФОНДОВИХ РИНКІВ

This article is devoted to forecasting the dynamics of processes occurring in the stock market, the methods of chaotic dynamics. Chaotic dynamics is one of the areas of synergetics. Although there are many effective methods for modeling securities price forecasts, emerging stock markets are characterized by long-term stability and short-term instability. In this situation, to study the processes occurring in the markets, chaos theory can be used, which includes methods of theory of dynamical systems and fractal analysis. An example of practical implementation of this approach using neural networks for the share price of the company "Pharmacy 36 and 6" at the close of trading for 2014–2019. The company "Pharmacy 36 and 6" is a retail network of pharmacies "Lekpharm", which is actively working and developing in the pharmaceutical market of Ukraine since 2001. The initial data were obtained on the website of the holding "FINAM". Neural networks have the ability to learn. At the same time, in the process of learning there is a phenomenon similar to self-organization. This property is characteristic of chaotic systems. The most important characteristics of chaos-dynamic analysis are calculated: Hausdorff dimension and Kolmogorov entropy. Their values indicate that the studied statistical series contains a chaotic component. The algorithm of technical application of neural networks is offered in the article. The model is built using neural network technology. Some of the input parameters of the network are determined based on the analysis performed. Comparison of the results obtained on the model deviate slightly from the actual data. It could be considered. that the model is adequate and can be used in practice. Forecasting the dynamics of securities can give a certain economic effect, a specific financial benefit to the owners of securities. Synergistic methods do not always lead to a solution to a problem or task. But they lead to a deeper and more accurate understanding of reality, which allows one to give an explanation for incomprehensible phenomena, such as pre-construction stability and short-term instability. Therefore, the synergistic economic paradigm has an interest on the part of researchers and policy makers.

Capital structure of COOP group in the Czech Republic

The aim of this paper is to evaluate the capital structure and its determinants in consumer co- operatives in the Czech Republic. Consumer co-operatives are associated in the COOP Group, which is the largest retail network of food stores in the country. This analysis uses quantitative data from the financial statements for the years 2014 to 2018 from the database of information on Czech economic entities Albertina. Financial indicators, regression as well as correlation analysis are all used to analyse the data. This paper reveals that the leverage of the entire group is low, as more than two- thirds of the assets are financed by equity. Internal financing from retained profits is prevalent. From the results of multiple linear regression analysis is apparent that tangibility and total assets turnover both have a positive effect on leverage while liquidity and retained profits negative.

Mathematical model for imitation of management of the enterprise’s logistical system

The study is devoted to solving the scientific problem of optimizing the retail trade in the production and sale of two types of products, taking into account the change in potential demand for products. The economic and mathematical model of the production activity of the enterprise was developed taking into account logistics and market demand. The logistics scheme takes into account all the main links of the logistics system, as well as the connections between them. The considered scheme makes it possible to take into account the diversification of products manufactured by the enterprise. The mathematical model is designed for discrete time. A numerical optimization method has been developed for this mathematical model. The optimal solutions for several cases are found and investigated. The dynamics of the main characteristics of drugs was calculated for all considered cases. A comparative analysis of economic efficiency for the studied cases has been performed. The economic efficiency of retail network optimization is proved.

МУЛЬТИФОРМАТНОСТЬ ТОРГОВЛИ КАК СТРАТЕГИЧЕСКОЕ НАПРАВЛЕНИЕ РАЗВИТИЯ СЕТЕВОГО РЕТЕЙЛА

At the moment, modern retail chains operate in various formats. Our Russian entrepreneurs have learned a lot from foreign networks, adopting their experience, technologies and strategies. For example, such formats of retail stores as outlets, malls, boutiques, discount centers, showrooms, hypermarkets, supermarkets, being a foreign product, have successfully taken root and work on the Russian market, including in Yekaterinburg. Retail formats are developing all over the world according to the same logic, and the Russian retail market repeats their experience. Along with this, we should note the tendency to replace traditional trade formats with more modern ones, as well as the desire to create multi-format retail networks. This makes them more flexible, allows them to make more purchases, increase the share of their own brands, and maintain customer loyalty by satisfying their various requests.

Driving Forces behind Regional Retail Network and Thoughts on Innovative Development

The past decade of innovation in the retailing industry has formed a general framework for regional retailing in China. Such achievement is a result of reckless efforts and the nature of business. This paper focuses on future regional retailing based on the motivation behind the existing regional retailing network and proposes suggestions in terms of market positioning, competitiveness, regional alliance, and technical support.

Органолептические исследования и определение массовой доли влаги в копченой рыбе

We conducted a veterinary and sanitary examination of smoked fish sold by the retail network of the city of Ulan-Ude, the Republic of Buryatia. Organoleptic studies were carried out on five indicators such as appearance, color of the scaly cover, texture, taste and smell. Physicochemical studies determined the mass fraction of moisture in smoked fish. According to the results of laboratory studies, it was found that all 5 samples sold in the retail network of the city of Ulan-Ude corresponded to regulatory legal documents

Joint inventory and fulfillment decisions for omnichannel retail networks

AbstractAn omnichannel retailer with a network of physical stores and online fulfillment centers facing two demands (online and in‐store) has to make important, interlinked decisions—how much inventory to keep at each location and where to fulfill each online order from, as online demand can be fulfilled from any location with available inventory. We consider inventory decisions at the start of the selling horizon for a seasonal product, with online fulfillment decisions made multiple times over the horizon. To address the intractability in considering inventory and fulfillment decisions together, we relax the problem using a hindsight‐optimal bound, for which the inventory decision can be made independent of the optimal fulfillment decisions, while still incorporating virtual pooling of online demands across locations. We develop a computationally fast and scalable inventory heuristic for the multilocation problem based on the two‐store analysis. The inventory heuristic directly informs dynamic fulfillment decisions that guide online demand fulfillment from stores. Using a numerical study based on a fictitious network embedded in the United States, we show that our heuristic significantly outperforms traditional strategies. The value of centralized inventory planning is highest when there is a moderate mix of online and in‐store demands leading to synergies between pooling within and across locations, and this value increases with the size of the network. The inventory‐aware fulfillment heuristic considerably outperforms myopic policies seen in practice, and is found to be near‐optimal under a wide range of problem parameters.

MECHANISMS OF FORMATION OF REPRODUCTION LOGISTICS OF THE MILK AND DAIRY PRODUCTS MARKET IN UKRAINE

Topicality. The task of improving the efficiency of the dairy market, as one of the strategic markets of Ukraine, necessitates solving many problems of its development, in particular, reducing the raw material base, unbalancing relations between entities, reducing the quality of dairy products, increasing imports and more. The main direction of solving the problems is to ensure equal conditions for the participation of small and medium producers in the reproduction process by creating multifunctional dairy cooperatives with a complete cycle of dairy products. Aim and tasks. The purpose of the article is to substantiate the components of the organizational and economic mechanism of formation of reproduction logistics of the dairy market, focused on ensuring equal conditions for the movement of dairy products between small, medium and large market participants on the basis of priority state support for multifunctional dairy cooperatives with the completed reproduction cycle of product traffic. During the research the following methods were used: dialectical, theoretical generalization and comparison, graphical, structural-logical method. Research results. Ensuring equal conditions for the participation of small and medium-sized producers in the reproduction process of the market is possible only through the in-depth transformation of existing mechanisms and organizational and legal forms of milk production on the basis of their priority state support. The proposed structural model of multifunctional dairy cooperatives compared to the traditional structure of existing cooperatives provides for the presence of its own raw material base for milk production, its own processing facilities, its own distribution channels and sales of finished dairy products through the cooperative retail network. Conclusion. The introduction of the proposed number of levers and tools for the formation of multifunctional dairy cooperatives involves improving the institutional support of this process. This necessitates the priority development of relevant laws and regulations that will help improve the efficiency of small and medium-sized dairy markets. The scientific novelty of the study lies in the theoretical substantiation of the organizational and economic mechanism of formation of reproduction logistics of the dairy market of Ukraine, the development of a differentiated approach to supporting the raw materials of the dairy market depending on the level of dairy farming in the regional dimension. The applied significance of the obtained results is determined by the possibility of their use by different institutions in the process of substantiation of measures and tools of dairy market regulation at the national, regional and local levels.

THE QUALITY OF DRINKING MILK SOLD IN THE RETAIL NETWORK OF KHABAROVSK

The article presents the results containing the examination of drinking milk samples sold in the retail net-work of Khabarovsk

Veterinary and sanitary evaluation of cooked smoked sausage “Moskovska” of different brands

The purpose of the work is to analyze the compliance of quality indicators of cooked-smoked sausage of the highest grade “Moskovska”, of different manufacturers to DSTU 4591:2006 “Cooked smoked sausages. General specifications”. The objects of our research were samples of boiled-smoked sausage of the highest grade “Moskovska” of several domestic brands: “Alan”, “Dobrov”, “Premiia”, and “Kovbasna Stolytsia”, selected by test purchase in the retail network of Odesa. A total of 20 samples of cooked and smoked sausage were examined — 5 samples of each brand. Sampling and organoleptic evaluation of sausage loaves were performed in accordance with DSTU 4823.2:2007; determination of the components of the chemical composition — using an express analyzer FoodScan, determination of microbiological parameters — following DSTU ISO 4833:2006, GOST 30518-97, GOST 29185-91, GOST 10444.2-94, DSTU EN 12824-2004, DSTU ISO 11290-2-2003. According to the results of the analysis of organoleptic parameters of сooked smoked sausages of the highest grade “Moskovska” it has been established that the products of brands “Alan” (29.8 points), “Dobrov” (29.6 points), and “Premiia” (29.5 points) meet the requirements of DSTU 4591:2006 “Cooked smoked sausages. General specifications”. Instead, the products of the brand “Kovbasna Stolytsia” received a score of 24.8 points and do not meet the requirements of the national standard by appearance and size of pieces of lard. According to the results of the analysis of the chemical composition of cooked smoked sausage of the highest grade “Moskovska” it has been established that the products of brands “Alan”, “Dobrov”, and “Premiia” meet the requirements of DSTU 4591:2006 “Cooked smoked sausages. General specifications”. Instead, the sausage of the brand “Kovbasna Stolytsia” do not meet the requirements of the national standard by the content of mass fraction of moisture (higher by 4.71%) and mass fraction of protein (lower by 2.28%). According to the results of the analysis of microbiological indicators of cooked smoked sausage of the highest grade “Moskovska” it has been established that the products of all brands meet the requirements of the national standard. Thus, summarizing the results of our research, we consider that the problem of compliance the quality and safety of cooked and smoked sausage to the requirements of DSTU 4591:2006 “Cooked smoked sausages. General specifications” needs constant monitoring

Digital entrepreneurs in technology-based spinoffs: an analysis of hybrid value creation in retail public–private partnerships to tackle showrooming

PurposeRetail networks present new challenges in the business-to-business (B2B) collaboration between technology-based spinoffs and traditional businesses. This study aims to explore a public–private partnership (PPP) that leverages advanced digital technologies via spinoffs to tackle the key challenge of showrooming that retail shops are facing. Showrooming is the phenomenon in which shoppers go to the physical stores to gather in-depth product information, and later on, decide to buy the product from online retail competitors.Design/methodology/approachThis research draws on a longitudinal qualitative study of a social context in which digital entrepreneurs are embedded. The empirical setting is a retail network in Italy, Germany and Finland with a particular focus on the process in which a PPP delivers innovation via spinoffs in the context of brick and mortar shops (B&M). The research design enables an understanding of the complexity of the phenomenon from a business and a social perspective.FindingsNew technology to tackle showrooming enables the creation of substantial hybrid value in retail partnerships. Spinoffs are key actors in leveraging digital technologies to create value faster and more tailored compared with large software companies. Spinoff entrepreneurs leverage on specific technologies (e.g. virtual reality and artificial intelligence) available inside organizations’ network (i.e. PPPs). Spinoffs are found to be a fundamental actor in the process of dealing with showrooming because of their time to market. Large software companies usually are not interested in approaching B&M shops because of the high operational costs of product customization for B&M shops.Practical implicationsManagers could use the success factors of the spinoffs in helping their B&M shops to improve both shopper experience and salesperson performance. For managers of B2B retail network, the results are useful towards increasing the involvement of shoppers while they are visiting physical stores, and it also improves salesperson performance. It also leads to the observation that cross-selling is one of the most effective responses to the phenomenon of showrooming. As practical implications for policymakers, the current research supports the view that PPPs should support the creation of spinoffs as a result of longitudinal innovation projects.Social implicationsRetail technologies leveraged from a PPP and commercialized by spinoffs are powerful tools to enable a better quality of salespeople’s life in the working place. At the same time, these new technologies help shop owners increase the retention rates, conversion rates and reduce short-term loss, increasing the likelihood of B&M shops to survive in the condition of extreme competition caused by the showrooming phenomenon.Originality/valueThis research proposes a model of hybrid value creation from networks in digital retail. The model indicates that PPPs create spinoffs to explore showrooming and deliver substantial hybrid value (i.e. business and social) for physical retail shops, mainly because it influences the companies’ growth, employee performance and customer satisfaction. This model expands the field of B2B marketing by identifying factors that enable spinoff creation from retail networks and proposes success factors and research propositions in retail networks.

Facilities Delocation in the Retail Sector: A Mixed 0-1 Nonlinear Optimization Model and Its Linear Reformulation

The problem concerning facilities delocation in the retail sector is addressed in this paper by proposing a novel mixed 0-1 linear optimization model. For this purpose, the aim of the problem is to decide whether to close existing stores or consider an alternative type of store management policy aimed at optimizing the profit of the entire retail network. Each management policy has a different repercussion on the final profit of the stores due to the different margins obtained from the customers. Furthermore, closing stores can cause customers to leave the whole retail network according to their behavior. This behavior is brought about through their tendency to abandon this network. There are capacity constraints imposed depending on the number of stores that should stay open and cease operation costs, customer behavior and final prices. These constraints depend on the type of management policy implemented by the store. Due to the commercial requirements concerning customer behavior, a set of non-linear constraints appears in the definition of the model. Classical Fortet inequalities are used in order to linearize the constraints and, therefore, obtain a mixed 0-1 linear optimization model. As a result of the size of the network, border constraints have been imposed to obtain results in a reasonable computing time. The model implementation is done by introducing smart sets of indices to reduce the number of constraints and variables. Finally, the computational results are presented using data from a real-world case study and, additionally, a set of computational experiments using data randomly generated as shown.

Assessing the Spatial Dependence of the Shipped Products Volume in Dynamics

Purpose of the study. The relevance of studying the issues of assessing the volume of shipped products is due to at least two reasons. On the one hand, its role as a resultant indicator of the activity of territorial systems, on the other, its primary nature in relation to the subsequent stages of distribution and consumption. The increase in production is directly related to domestic consumption and the possibilities of promoting manufactured goods to foreign markets, which is characterized by the volume of retail and wholesale trade. The need to search for opportunities for growth in production determines the need to expand the existing ideas about these connections, including the effects of time and space. In the context of the economic space network development, the changes cannot be ignored in production and trade processes in some territories in isolation from the processes taking place in other territories. At the same time, it is obvious that any current state is a consequence of the position achieved by the considered territory in the past. The purpose of the study is to assess the spatial dependence of the volume of the shipped products in dynamics in relation to the indicators of wholesale and retail trade. Materials and methods. The paper evaluates spatial autocorrelation using univariate and bivariate Moran's indexes – indicators, characterizing production, distribution and exchange of goods. Based on the selected spatial dependencies, three models were consistently built on the panel data from 2010-2019 for 85 regions of the Russian Federation: pooled model, panel-based spatial lag model; model with a spatially weighted factor variable. The calculations were performed using the GeoDA program. Results. The results showed that spatial effects should be taken into account in the study of the volume of products shipped. The value of the global Moran's index shows a high direct connection between the regions of the Russian Federation in terms of the volume of shipped products (0.29-0.39), with a weak connection for the wholesale trade turnover (0.06-0.18). In turn, the bivariate Moran's index showed that the volume of shipped products has a spatial relationship with the turnover of wholesale trade in neighboring regions of the Russian Federation. Domestic final consumption, characterized by per capita retail trade turnover, also has a positive effect on the volume of products shipped per capita. The constructed models showed that the volume of shipped products is positively affected by an increase in wholesale trade in the region and in neighboring territories, retail trade in the region and the development of production in neighboring territories. Conclusion. The article discusses a model that allows linking the development of the production of goods with the state of the channels of their promotion both inside the territory and outside it. At the same time, the use of panel data in the calculations helps to obtain reliable and meaningful estimates in the models. Within the framework of the proposed models, it was possible to identify the connection between production and wholesale trade, which was not previously determined on cross-sectional data. The results obtained make it possible to improve the quality of decisions made in matters of the territorial organization of economic activity in the regions, contributing to the development of production that depends on the possibilities of promoting manufactured goods through the wholesale and retail network.

Safety Stock Allocation in an Online Retailing Network: A Stochastic Optimization Approach

Online retailers utilize lateral transshipment to meet the immediate shortage of demand at one location from surplus at another location within their retailing network. One option to reduce such potentially expensive transshipment is to hold additional safety stock at each location. We investigate the allocation of safety stock in a network of fulfillment centers with the possibility of lateral transshipment. Our problem setting is motivated by online retailers who operate multi-node retailing networks of fulfillment centers under a periodic review and order-up-to policy. We formulate the safety stock allocation problem as a stochastic optimization model with uncertain demand, and optimally solve the model for a network with up to six fulfillment centers. The optimization model quickly becomes intractable, with an increase in problem size. Therefore, for larger networks, we propose a novel hub-and-spoke approach where the fulfillment centers are first clustered and then connected as a Minimal Spanning Tree, followed by a system-wide safety stock allocation via stochastic optimization. The hub-and-spoke approach performs quite favorably in our extensive computational experiments, and demonstrates the potential to save millions of dollars in outbound shipping costs for an online retailer. Our study provides online retailers with an easily implementable and efficient safety stock allocation mechanism across a complex and geographically distributed network of fulfillment centers.

The Development of Private Trade in 1924–1926 in the Irkutsk Province: Trends and Problems

The present research featured the trends of private trade in the Irkutsk province. The study was based on historical documents from the State Archives of the Irkutsk Region. The paper focuses on 1924–1926 as the period of active trade development. The authors analyzed the problems of private trade functioning and their impact on the socio-economic situation in the region. The article describes the market activity and product range, the role and importance of entrepreneurship in commodity deficit relief and re-establishing of market relations. The research revealed a rapid development of private trade at the initial stage and a further reduction of this segment of economy as a result of the policy aimed at expanding the public sector. Subsequently, small private business moved into rural areas, and the retail network reduced. The authors believe that the development of private trade in this period was contradictory and unstable. In the Irkutsk province, there was a significant gap between prices and incomes, as well as between the cost of industrial and agricultural goods. As a result, the state trade activities were inefficient, and the private entrepreneurship needed support. However, the centralization of economic policy and the rigidity of management positions did not allow these trends to develop, which negatively affected the economy of the region as a whole.

Network planning and operation of sustainable closed-loop supply chains in emerging markets: Retail market configurations and carbon policies

This paper studies an integrated network planning and operation problem of sustainable closed-loop supply chain (CLSC) under demand uncertainty with particularly interest in the configuration of retail network. The problem is modeled as a two-stage stochastic program which is further extended to evaluate the impact of various carbon polices on planning and operation decisions of the CLSC. A branch and bound based integer L-shaped algorithm has been proposed to solve these models. Extensive numerical experiments are conducted and impacts of carbon policies are analyzed. Sensitivity analysis is carried out and several managerial insights are drawn.

Integrated supply chain scheduling of procurement, production, and distribution under spillover effects

This paper considers an integrated scheduling problem in an e-commerce supply chain. The supply chain consists of heterogeneous suppliers, consumer-goods manufacturers that offer online channels, and a network of retailers. Suppliers provide raw materials or semi-finished products to manufacturers. Then, manufacturers produce and deliver end items to retailers. The retailers require that the manufacturers maintain a given fill rate, and, otherwise, a penalty will apply. Missing the fill rate can not only result in penalties, but also retailers’ switching, operational issues, and loss of image, and market value. Therefore, the total penalty costs are nonlinear with retailers’ unsatisfied quantities and the fill rate, which exhibits spillover effects. The problem is to select a subset of suppliers, assign retailers’ orders, and identify a production schedule with the manufacturers while minimizing the total costs that includes shipping and penalty. In this paper, we formulate a mixed-integer nonlinear program and develop a hybrid particle swarm optimization algorithm that can find a suitable solution within a reasonable time. The algorithm incorporates augmented Lagrangian relaxation and particle swarm optimization. We then perform computational testing on randomly generated cases and evaluate the performance of the proposed algorithm. Our numerical experiments show that the proposed algorithm is robust and efficient. Moreover, we provide a real case study, which demonstrates that the proposed model can lead to a substantial reduction of both the total and penalty costs.