|Order policies for a perishable product in retail
Pauls-Worm, K.G.J. ; Hendrix, E.M.T. - \ 2018
Retail - Order policy - perishable product - non-stationary demand - service level constraint
A challenge of inventory control of perishable products in retail is that in general the age distribution of the items in stock is not known. Only the total numbers of items delivered and sold are recorded, resulting in an estimate of the total items in stock. The exact number may be different from the inventory status according to the checkout system due to damaged items and more waste than expected. We investigate order policies for a product with a maximum shelf life of 3 days at delivery. Demand is non-stationary during the week, but stationary over the weeks. Lead time is one day.
For planning purposes in the supermarket, we search for order policies with fixed reorder days during the week, so we order at least 3 times a week, and at most every day. It is likely to have items of different ages in stock. Customers can pick the items in front of the shelf (FIFO), as preferred and stimulated by the store, or search for the freshest items (LIFO). The store has a target α-service level to meet demand.
A Stochastic Programming (SP) model is presented of the situation in the retailer practice. Several policies to determine the order quantity are studied and compared to a policy from literature. The base is a YS order policy where the reorder days Y are fixed and order-up-to levels S are used, with parameter values generated by an MILP approximation of the SP model. Numerical experiments compare the effectiveness of the policies with respect to costs and reached service levels.
This apple is too ugly for me! : Consumer preferences for suboptimal food products in the supermarket and at home
Hooge, Ilona E. de; Oostindjer, Marije ; Aschemann-Witzel, Jessica ; Normann, Anne ; Loose, Simone Mueller ; Almli, Valérie Lengard - \ 2017
Food Quality and Preference 56 (2017). - ISSN 0950-3293 - p. 80 - 92.
Consumer choice - Food waste - Households - Imperfect foods - Retail - Suboptimal products
Food waste has received increasing scientific and societal attention during the last decade. One important cause of food waste is thought to be the un-willingness of supply chains and consumers to sell, purchase, and consume suboptimal or imperfect foods. Yet, empirical research on this issue is scarce and contradictory. The current research investigates under which conditions consumers purchase or consume foods that deviate from regular products in terms of appearance standards, date labelling, or damaged packaging, without deviation on the intrinsic quality or safety. An online choice experiment among 4214 consumers from five Northern European countries reveals that consumer preferences for suboptimal products differ depending on whether the consumer is in a supermarket or at home, and depending on the type of sub-optimality. Moreover, consumer choices, discount preferences, and waste behaviors of suboptimal products are influenced by demographics (nationality, age), by personality characteristics (value orientation, commitment to environmental sustainability, and perceived consumer effectiveness in saving the environment), and by individual-waste aspects (perceived food waste of the household, perceived importance of food waste, engaging in shopping/cooking). These findings provide important insights into consumer preferences for suboptimal products, and useful suggestions for supply-chain regulations on suboptimal products.
Product Category Layout and Organization: Retail Placement of Food Products
Herpen, E. van - \ 2016
In: Reference Module in Food Science / Smithers, Geoffrey, Elsevier - ISBN 9780081005965
Arrangement - Assortment - Display - Layout - Location - Organization - Retail - Shelf - Store design
This article discusses the placement of food products in retail stores, in particular how the placement of food products can influence how consumers perceive the store in general and these products in particular. It reviews the overall layout of the store, assortment organization, and shelf arrangement. The overall layout of a store (or department within a store) is one of the first things that consumers notice when they enter. Layout affects overall store perceptions (e.g., whether the store is considered upscale or downscale) and as a consequence expectations about the products being sold therein (e.g., whether products are likely of high or low quality and price). When consumers approach the shelves on which food items are displayed, the organization of the shelf matters. Assortment organization can increase the salience of attributes, and thus influence the choices that consumers make. Additionally, consumers adjust their perception of food products based on the specific location these products take on the shelf.