What is it about?
We present a method for making pricing decisions, in consideration of the spatial locations of customers, as well as other logistics and operational costs of Internet-enabled retailers.
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Why is it important?
By jointly optimizing the logistics and operational processes, a service provider can achieve a considerably high profit through both channels, without necessarily expanding the size of its geographical service areas.
Perspectives
Many retailers nowadays operate in an Internet-enabled dual-channel supply chain setting, where products and services are delivered through both online B2C (business-to-consumer e-tail) and offline B2C (traditional brick and mortar retail) channels. Our research develops a novel location-based pricing method for such companies.
Gurdal Ertek
Read the Original
This page is a summary of: Location-based pricing and channel selection in a supply chain: a case study from the food retail industry, Annals of Operations Research, September 2018, Springer Science + Business Media,
DOI: 10.1007/s10479-018-3040-7.
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