Total Market Demand Research Articles

Banana Supply Chain in Navi Mumbai, India

This study investigates the banana supply chain in Navi Mumbai, aiming to identify existing supply channels, analyze their efficiency, problems faced by producers and anayse the market potential of banana in the study area. Primary data were collected from respondents to accomplish these objectives. Secondary data were obtained from private and government publications, and review papers. Utilizing a descriptive research design and employing a probability sampling method, the study surveyed 50 farmers, 5 village traders, 5 pre-harvest contractors, 10 wholesalers cum commission agents, and 10 retailers using a semi-structured schedule. Three marketing channels were identified. Among them channel-III (Farmer - Wholesaler cum commission agent - Retailer - Consumer) was the most efficient option, offering the highest producer's share in the consumer's rupee (40.05%) and the highest marketing efficiency (0.67), with a price spread of Rs. 1711.55 per quintal. In the study area, banana producers face challenges such as high input costs, delayed availability of planting materials, and losses due to diseases and pests. Marketing hurdles include lower prices, distant selling unit locations, delayed payments, and inadequate transportation and storage facilities. Village traders, preharvest contractors, wholesalers cum commission agents, and retailers also encounter various obstacles such as price fluctuation, handling and transportation losses, low-quality produce, and labour shortages. As the total market demand for banana in Navi Mumbai was estimated to be ₹62.26 crore, addressing these challenges is vital for enhancing the efficiency and profitability of banana marketing in the study area, necessitating coordinated efforts from policymakers, agricultural stakeholders, and market participants. Establishing FPOs and FPCs can ease access to affordable planting materials and address marketing challenges, benefiting all banana market stakeholders.

Low-Carbon Supply Chain Decision-Making and CSR Strategy Evolution Analysis Considering Heterogeneous Consumer Preferences

Decision-making regarding the low-carbon supply chain, considering corporate social responsibility (CSR) and the heterogeneous preferences of consumers, has become an urgent topic to be explored. This paper explores the decision-making problem of a low-carbon supply chain considering the heterogeneous preferences of consumers under different CSR situations, analyzes the influence of important parameters on each equilibrium solution, compares the size relationship of each equilibrium solution under different CSR situations, and verifies the conclusions obtained through numerical simulation. Then, based on the obtained equilibrium solution, a CSR evolutionary game model of the low-carbon supply chain is constructed, and the evolutionary stability strategies of the two sides on the CSR game are solved. Finally, the evolutionary trajectory of the game system is intuitively presented using a simulation method, and the influence of the main parameters on the evolutionary trends of the two sides is analyzed. The findings are as follows: (1) When both manufacturers and retailers undertake CSR, the retail price and wholesale price are their lowest, while carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility are the highest. (2) When a company undertakes CSR, carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility all increase with the increase in the CSR degree of the company and the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers. (3) The evolutionary stability strategy for both manufacturers and retailers is to undertake CSR. In addition, the initial proportion of manufacturers and retailers that undertake CSR, the low-carbon preference of low-carbon consumers, and the increase in the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers can encourage both members of the supply chain to undertake CSR.

Thinking and Exploration of the Organic Connection between Market Demand and Talent Training of Medical Laboratory Technology Specialty

Background: To explore the reasonable orientation of talent training for medical laboratory technology (MLT) at the vocational undergraduate level, this study has conducted a thorough survey and analysis of the talent market demand in multiple aspects, including the total MLT talent market demand, talent demand changes and expectations, and changes in industry development. Methods: Based on a literature search, this study collected statistics on the number of MLT professionals in China over the past decade. Questionnaires were distributed to 128 employers in 14 provinces nationwide. A survey was conducted on the overall industry development and the requirements of enterprises for the abilities of talent on the market, and 26 doctors and nurses with senior technical titles were interviewed. Another survey was carried out among 17 higher vocational colleges and 8 general undergraduate universities nationwide, focusing on vocational abilities that are highly regarded by teachers. Results: As reflected by the results of this study, the market requires a higher level of educational background for talent, and self-directed learning ability is rated as the most essential vocational ability by enterprises. Moreover, the ability to use information technology and the communication and expression ability are necessary personal abilities in the opinion of enterprises. However, the vocational abilities specially developed by teachers are not always the same as those required by enterprises. The results of this study show that the latest progress of information technology in the industry must be integrated into talent training, and priority should be given to developing innovation ability, self-directed learning ability and interpersonal communication ability to develop talent that precisely meets market demand. Conclusion: Based on a thorough survey and analysis of market demand, this study recommends upgrading traditional teaching thought, focusing on specific market demand, accurately determining talent training and ensuring that talent can better meet market demand.

Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences

Blockchain technology allows fresh agricultural enterprises to share records stored on the chain, and the technology can benefit information management systems, such as decentralization and transparency. This study uses game theory to examine a blockchain introduction strategy for fresh agricultural enterprises in a competitive environment, considering consumer traceability preferences. We establish a pricing decision model in traditional and blockchain traceability modes and identify optimal solutions. Additionally, we analyze the impact of the blockchain introduction strategy, consumer preferences, and blockchain influence factor on optimal pricing decisions. The results indicate that the introduction of blockchain could improve the profits of enterprises under certain conditions. Moreover, consumer traceability preferences and the blockchain influence factor could significantly affect the blockchain introduction strategy. We also discover that when the blockchain influence factor meets a certain range, introducing blockchain technique in the traceability system could shift demand from traditional enterprises to blockchain enterprises. The total market demand for blockchain enterprises under the blockchain traceability mode will increase, whereas that of traditional enterprises under the blockchain traceability mode will decrease. Both consumer traceability preferences and the blockchain influence factor could significantly affect optimal pricing. Finally, some management suggestions are provided for the traceability of fresh agricultural enterprises based on the research conclusions.

Service Capacity and Price Promotion Wars

Firms often engage in price promotion wars to gain market share from their competitors. However, poor customer satisfaction as a result of limited service capacity may significantly impact such a pricing strategy. In this paper, we consider a two-firm price competition model in which customers’ purchase decisions are affected by their anticipation of a poor service encounter. Our equilibrium analysis reveals that firms would be less aggressive in engaging in price cutting when customers care more about service quality and when service capacity is relatively low. Interestingly, when service capacity is close (but not exact) to covering one half of the total market demand, firms would adopt a mixed strategy with randomized pricing, driven by unilateral motives to either capture more market share (by lowering prices) or increase profit margin (by raising prices). We further show that having a superior service capacity presents a competitive advantage for a firm and such advantage can be preemptive. In an extended two-period model that allows for customer switching after a poor service encounter, we find that when service capacity is relatively low, firms may offer deeper price discounts in the first period if customers are forward looking than if they are myopic. Our numerical study confirms that the main qualitative insights obtained in our base model continue to hold when the customer switching behavior is considered. This paper was accepted by Jay Swaminathan, operations management. Supplemental Material: Data and the online appendix are available at https://doi.org/10.1287/mnsc.2022.4325 .

Techno-economic analysis of recombinant Endo-β-1,4-Glucanase production from Escherichia coli Eg-RK2 culture using oil palm empty fruit bunch

A techno-economic analysis of recombinant cellulase production from E. coli Eg-RK2 was conducted to support the fulfilling of Indonesia’s energy roadmap for ethanol production. The plant utilizes OPEFB as a primary substrate in cellulase production, with an expected lifetime of 12 years. The plant is assumed to be built in Indonesia and it will fulfill 1% of the total market demand. The effect of different pretreatment processes (alkaline, steam explosion, and sequential acid-alkaline) on the profitability parameter was also studied. A simulation using SuperPro Designer was used to calculate the mass and energy balance based on the kinetic parameters of E. coli EgRK2. A technology evaluation showed that alkaline pretreatment provides the highest yield with no known inhibitors formed. The steam explosion pretreatment offers the lowest rate of lignin and hemicellulose removal, and it is understood to form known fermentation inhibitors. The NPVs of the alkaline, steam explosion and sequential acid-alkaline pretreatments are USD 32,121,000, USD -36,841,000, and USD 384,000, respectively, which means the alkaline pretreatment is economically very feasible for the production of cellulase.

Digital Humanities in the Job Market

AbstractThis study identifies the degree requirements which employers are looking for and analyzes the common positions in digital humanities job advertisements. Using data from the Digital Humanities Now website from 2012 to 2019, we investigate a total of 933 jobs opening related to the digital humanities field. Total job market demand has been relatively stable, having fallen in the last two years. Our study provides a concrete blueprint for the work needs of digital humanities. We find that internal demand structures of industry and academia is changing over time. Job demands from academia account for about 75%. Most of them needs academic staff and librarians. Data shows that 68% of jobs want PhDs. Digital humanities practitioners should pay close attention to changes in market demand and adjust their professional ability in time. Only in this way can they be well prepared to apply for the job they want.

ELECTRICITY PRICE FUNDAMENTALS IN HYDROTHERMAL POWER GENERATION MARKETS USING MACHINE LEARNING AND QUANTILE REGRESSION ANALYSIS

A hydrothermal power generation market is characterized by a strong dependence on water reservoir capacity and fossil fuel sources, which causes differences in generation marginal costs and high variability of the electricity spot price. Therefore, this study proposes an empirical approach to identify the price determinants and their effects on price dynamics. This paper presents two methodologies: a machine learning approach and a quantile regression analysis. The first method is used to validate the price determinants through a prediction process, and the second, the quantile regression, to identify the non-linear effects. The most important factors observed are total market demand, water reservoirs capacity for generation, and fossil fuel consumption. The results offer a new perspective about the market structure and spot price volatility.Keywords: electricity prices; hydrothermal power generation markets; machine learning; quantile regression; Gaussian process regression.JEL Classifications: C22, Q41, Q43, Q47DOI: https://doi.org/10.32479/ijeep.11346

Optimal Channel Strategy for a Fresh Produce E-Commerce Supply Chain

As an increasing number of firms move to omnichannel operation for business sustainability, it is also necessary for fresh produce firms to adopt an omnichannel model by integrating online and offline channels. We focus on a fresh produce supply chain consisting of a supplier who sells online directly and a physical store retailer. The purpose of this paper is to explore the optimal channel selection strategy considering the fresh-keeping efforts of supply chain members. Specifically, we examine the conditions under which the supply chain members should cooperate to adopt the deliver-from-store (DFS) model and further investigate the impact of consumers’ freshness sensitivity and offline hassle cost on supply chain members’ sales model options. Several important conclusions are shown as follows. First, the retailer’s profit increases with the increasing freshness sensitivity in the dual-channel model, while it decreases if consumers are sufficiently sensitive to freshness in the DFS model. Second, if adopting the DFS model, online demand and total market demand expand, and the performance of the supplier and the retailer heavily depends on the size of the commission rate. Third, there always exists a win–win situation with an appropriate range of commission rate when the consumer’s hassle cost is large. This paper contributes to the omnichannel strategy research of fresh produce supply chain management and the results provide management insights for the sustainable development of the fresh produce industry in the omnichannel retailing environment.

Integrated flight scheduling and fleet assignment with improved supply-demand interactions

Flight scheduling and fleet assignment are important steps of an airline planning process. In light of the reciprocal relationship between air transport supply and demand, a key element of these models is to devise effective methods to both incorporating estimation of total market demand and allocating passengers over the available itineraries in a specific market. In this paper, we present a novel mixed integer nonlinear flight scheduling and fleet assignment optimization model wherein air travel demand generation and allocation are simultaneously and consistently endogenized. Using a nested logit formulation, we jointly model competition among air travel itineraries and appraise the contribution of specific itinerary attributes to demand generation, therefore yielding a more comprehensive and explicit representation of supply-demand interactions. Computational testing based on realistic problem instances reveals that the model can optimize mid-size hub-and-spoke networks within reasonable time. Further analyses illustrate the benefits that can be derived from the application of the proposed approach using real-world data for a major European airline. Results demonstrate that the proposed approach can significantly enhance operating profits by up to 6.9% and better reveal opportunities for demand stimulation against a conventional approach using inelastic trip generation.

Dynamic generic and brand advertising decisions under supply disruption

Enterprise captures market share from competitors through brand advertising and increases consumer demand for this category of products through general advertising. In this paper, considering a supply chain with a manufacturer who is responsible for generic advertising and a retailer who undertakes brand advertising, a Stackelberg differential game-theoretic model is established to examine the impact of supply disruption faced by the manufacturer on the optimal decision-making and profits of supply chain members. When the supply of raw materials is disrupted, the optimal advertising strategies and advertising subsidy scheme designed for the initially estimated product sales need to be revised. The key to solving this problem is to explicitly consider possible deviation profit margins of supply chain members and total market demand for products caused by changes in the original product supply. Considering that the deviations of the profit margins and the total market demand are arbitrary, we analytically derive several propositions and obtain the optimal advertising strategies and the advertising subsidy scheme before and after the supply disruption. Then, we explore the impact of supply disruption through numerical analysis and provide management insights that are helpful for managers to re-design the advertising strategies and advertising subsidy schemes under supply disruption.

Service Capacity and Price Promotion Wars

Price promotion wars have been commonly observed in the online retail industry. One intuitive explanation is that firms cut their prices in the current period, hoping for locking in customers for future profit. While such practice is prevalent, our understanding of the role of service capacity in firms’ price promotion strategy is lacking, especially when customers’ purchase experience may be negatively affected by firms’ limited service capacity. In this paper, we revisit the classic symmetric two-firm, two-period price competition model with customer switching costs, making the following modification|depending on the first-period demand and available service capacity, customers may be either satisfied or unsatisfied, which, in turn, determines a high or low switching cost in the second period. Our analysis of the model reveals three main insights. First, when service capacity is relatively limited, the magnitude of the first-period discount becomes smaller. As a result, limited service capacity makes the market less competitive, and firms’ profit improves. Second, perhaps most surprisingly, when the service capacity is limited but close to cover one half of the total market demand, competition intensifies, forcing firms to use a mixed strategy with randomized pricing in the first period. Third, having higher service capacity in an asymmetric capacity case can provide a competitive advantage for firms. Our numerical experiments further demonstrate that the randomized pricing insight carries over to the asymmetric capacity case, as long as one of the firms has a limited service capacity close to cover one half of the total market demand.

Bundling for Flexibility and Variety: An Economic Model for Multiproducer Value Aggregation

Many markets feature an economic structure in which value is cocreated by multiple producers and aggregated into a common bundle by a producer-consortium or independent firm. Examples include in-home video entertainment, technology goods and services, multisourced data platforms, and patent pools. This paper develops an economic model to study demand, production choices, revenue sharing, and relative market power in such markets. Producers in these markets are not rivalrous competitors in the usual zero-sum sense, because output of each casts an externality on production decisions of others and total market demand expands with total output, albeit with diminishing returns. This property allows multiple producers to flourish in equilibrium (versus just one with the most favorable technological or cost structure), and more so when the market expands less quickly with total output. Equilibrium production quantities of competitors are strategic complements, yet competition between producers does manifest itself, for example, if one acquires better production technology (i.e., makes value units at lower cost) then the equilibrium production levels of other producers are reduced. Insights are also derived for alternative market structures, for example, producers have more output and earn higher profit when organized into a distribution consortium (e.g., Hulu or consortia of zoos or museums) versus relying on a separate retailer. Mergers between producers have similar effect. The formulation enables us to rigorously answer economic questions ranging from pricing, revenue sharing, and production levels in a static setting, to market dynamics covering both the causes and effects of changes in industry structure. This paper was accepted by Chris Forman, information systems.

Cooperative strategy for a dual-channel supply chain with the influence of free-riding customers

Abstract In this paper, we consider that customers differ in their channel preference when facing multiple shopping channels. We focus on research shoppers who do not have a particular preference for either channel and are likely to become free-riders. To explore the influence of free-riding behavior, we build profit models with and without free-riding and compare the optimal solutions under the two scenarios. We find that free-riding can contribute to an increase in the total market demand by affecting members’ pricing decisions. However, it makes a divisional effect on the offline demand and intensifies channel conflict, which finally benefits the manufacturer but undermines the retailer’s profit. To solve this contradictory situation, we propose a cooperative strategy. We find that the cooperative strategy can effectively remove the negative influence of free-riding and make both members achieve Pareto improvements. Numerical examples are presented to show the effectiveness and feasibility of the cooperative strategy.

Markdown Pricing with Quality Perception

Problem Definition: Consumers often perceive higher-priced products to have higher quality. Less is known on how quality perception is affected by price markdowns. In addition, it is an open question whether and how consumers’ ex-ante expectation on a future markdown affects their quality perception as well as purchase decisions. We answer these questions in a markdown setting under a fixed inventory. Academic/Practical Relevance: This paper adds to the growing literature that incorporates consumers’ behavioral regularities in revenue management by studying the new dimension of quality perception and generates new insights absent in the current literature. Our results offer insights on how retailers should adapt their markdown strategy in the presence of price-based quality perception. Methodology: We develop a consumer model that incorporates quality perception and emotional loss when the expected markdown is too optimistic as compared to the actual markdown. We embed this model into the retailer’s markdown optimization and examine the impact of consumers’ behavioral factors on the retailer’s optimal strategy. Finally, we design and conduct a consumer study to calibrate our model and validate the functional relationships among key factors. Results: Consumers’ quality perception increases with the products full price while it decreases with the (expected) markdown. We show that the retailer’s optimal markdown is nonmonotone in these quality perception parameters. The nonmonotonicity is driven by the nontrivial tradeoff of trying to maintain a higher perceived quality by the consumers while controlling potential loss emotion that could arise if consumers observe a smaller-than-expected markdown, particularly when total market demand is not very large. Furthermore, we find that it is beneficial for the retailer to pre-announce and commit to a markdown strategy to prevent a mismatch between consumers’ expectation and the actual markdown. This approach benefits the retailer by eliminating the negative effect on sales of the consumers’ loss emotion due to an optimistic expectation. Managerial Implications: Ignoring these behavioral factors can substantially hurt the retailer’s payoff. When inventory is tight, it is critical to correctly capture consumers quality perception (38% average loss in payoff if ignored). When instead inventory is sufficient, the retailer should be mindful of the potential emotional loss that its markdown could create among its consumers.

A Model for Value Co-Production and Cross-Producer Bundles

Many markets feature an economic structure with value co-created by multiple producers whose outputs are sold as a common bundle by a producer-consortium or independent firm. Examples include in-home video entertainment, technology goods and services, multi-sourced data platforms, and patent pools. This paper develops an economic model to study demand, production choices, revenue-sharing, and relative market power in such markets. Producers in these markets are not rivalrous competitors in the usual zero-sum sense, because output of each casts an externality on production decisions of others and total market demand expands with total output, albeit with diminishing returns. This property allows multiple producers to flourish in equilibrium (vs. just one with the most favorable technological or cost structure), and more so when the market expands less quickly with total output. Equilibrium production quantities of competitors are strategic complements, yet competition between producers does manifest itself, e.g., if one acquires better production technology (i.e., makes value units at lower cost) then the equilibrium production levels of other producers are reduced. Insights are also derived for alternative market structures, e.g., producers have more output and earn higher profit when organized into a distribution consortium (e.g., Hulu, or consortia of zoos or museums) vs. relying on a separate retailer. Mergers between producers have similar effect. The formulation enables us to rigorously answer economic questions ranging from pricing, revenue sharing, and production levels in a static setting, to market dynamics covering both the causes and effects of changes in industry structure.

A comparative study on recycling amount and rate of used products under different regulatory scenarios

Used products recycling is a cleaner and greener mode of production. The multiple uncertainties in the process of recycling and reproduction require appropriate government regulation. On the basis of classical game theory, the positive influence of cooperative social reputation is also considered, and a dynamic Stackelberg game model dominated by manufacturers is constructed. The comparison of the total market demand for products, the number of used products recycled and the recycle rate of used products can be obtained under four different scenarios. In addition to the business as usual (BAU) scenario, any kind of scenarios represent the corresponding regulatory policy. The results show that, with respect to the BAU scenario, the penalty scenario and the reward-penalty scenario have a positive correlation with the recycling rate of used products, while the reward scenario has a negative correlation with the recycling rate. The impact of the reward-penalty scenario on the total market demand for products, cooperative social reputation and the number of used products recycled is related to the specified recycling rate, set by the government. In the end, the validity of the model is verified through numerical simulation and the sensitivity of the relevant parameters under the reward-penalty scenario are analysed. The conclusion of this paper is of great significance for designing precise policies to promote recycling of used products.

Integrated assessment projections for global geothermal energy use

The use of geothermal energy is expected to grow rapidly over the next several decades at many places in the world, since geothermal resources are abundant, and because this renewable energy option is both a low-carbon and non-intermittent technology. With the integrated assessment model TIAM-ECN we quantify how large its growth could be until 2050, and analyze how this expansion could be stimulated by both climate policy and technological progress. We inspect both geothermal energy’s main applications: the generation of electricity and the production of heat. For the former, we project an increase to a power production level of around 800–1300 TWh/yr in 2050, depending on assumptions regarding climate ambition and cost reductions for enhanced geothermal resource systems. For the latter, with an emphasis on residential and commercial heat use applications, we anticipate under the same assumptions a rise to about 3300–3800 TWh/yr in the same year. We estimate that by 2050 geothermal energy plants, partly in competition with renewables like solar and wind power, as well as with incumbent fossil fuel based power production, could contribute approximately 2–3% to global electricity generation. If all nations stay on track of the Paris Agreement target by not increasing the global average atmospheric temperature with more than 2°C, and if the costs of geothermal energy production from deep formations reduce with the same learning rate of 13% that has been empirically observed for fracking technology applied to natural gas fields, we project a possible total geothermal energy investment market (supply plus demand side) worth about 500 billion US$/yr by mid-century.

From Forward to Spot Prices: Producers, Retailers and Loss Averse Consumers in Electricity Markets

The benefits of smoothing demand peaks in the electricity market has been widely recognised. European countries such Spain and some of the Scandinavian countries have recently given to the consumers the possibility to face the spot prices instead of having a fixed tariffs determined by retailers. This paper develops a theoretical model to study the relations between risk averse consumers, retailers and producers, both in the spot and in the forward markets when consumers are able to choose between fixed tariffs and the wholesale prices. The model is calibrated on a real market case - Spain - where since 2014 spot tariffs were introduced beside the flat tariffs for household consumers. Finally, simulations of agents behavior and markets performance, depending on consumers risk aversion and the number of producers, are used to analyse the implications from the model. Our results show that the quantities the retailers and the producers trade in the forward market are positively related with the loss aversion of consumers. The quantities bought by the retailers in the forward market are negatively related with the skewness of the spot prices. On the contrary, quantity sold forward by producers are positively related with the skewness of the spot prices (high probability of getting high prices increase the forward sale) and with the total market demand. In the spot market, the degree of loss aversion of consumers determine the quantity the retailers buy in the spot market but does not have a direct effect on the spot prices.

Preliminary plant design of Escherichia coli BPPTCC-EgRK2 cell culture for recombinant cellulase production using Oil Palm Empty Fruit Bunch (OPEFB) as substrate

An economic analysis of recombinant cellulase production from E. coli BPPTCC Eg-RK2 was conducted to support the fulfilling of Indonesia’s energy roadmap for ethanol production. The plant use oil palm empty fruit bunch (OPEFB) as primary substrate in cellulase production, with the expected lifetime of 12 years. The plant is assumed to be built in Indonesia and will fulfill 1% of total market demand. The effect of different pretreatment process (alkaline, steam explosion, and sequential acid-alkaline) on the economic value was also studied. A simulation using SuperPro Designer was used to calculate the mass and energy balance based on the kinetic parameter of E. coli BPPTCC-EgRK2. Technology evaluation show that alkaline pretreatment gave the highest yield with no known inhibitors formed. The steam explosion show the lowest lignin and hemicellulose removal and known to form known fermentation inhibitors. The net present value of alkaline, steam explosion, and sequential acid-alkaline pretreatment were USD 7,118,000; - USD 73,411,000 and USD -114,013,000 respectively, which mean alkaline pretreatment is the only economically feasible pretreatment method for recombinant cellulase production.