Current electricity tariffs for retail rarely provide incentives for intelligent demand response of flexible customers. Such customers could otherwise contribute to balancing supply and demand in future smart grids. This paper proposes an innovative risk-sharing tariff to incentivize intelligent customer behavior. A two-step parameterized payment scheme is proposed, consisting of a prepayment b...

Customer Relationship Management (CRM) enjoys increasing attention as a countermeasure to switching behaviour of customers. Because foregone profits of (partially) defected customers are significant, an increase of the retention rate can be very profitable. In this paper, we focus on the treatment of a company’s most promising customers in a non-contractual setting. We build a model in order to...

With a large nationwide retailer, we run a natural field experiment to measure the effects of energy use information disclosure, customer rebates, and sales agent incentives on demand for energy efficient durable goods. While a combination of large rebates plus sales incentives substantially increases market share, information and sales incentives alone each have zero statistical effect and exp...

This paper studies an online retail supply chain that includes one referral infomediary and one retailer, in which the infomediary provides demand referral service to retailers and incentive rebates to customers. A linear dual-channel demand with the effect of customer incentive and horizontal service cooperation model was established, and then the optimal policies of infomediary and retailers ...

In this research, we deal with VMI (Vendor Managed Inventory) problem where one supplier is responsible for managing a retailer’s inventory under unstable customer demand situation. To cope with the nonstationary demand situation, we develop a retrospective action-reward learning model, a kind of reinforcement learning techniques, which is faster in learning than conventional action-reward lear...

Relative to brick-and-mortar retailers, online retailers have the potential to offer more options to their customers, with respect to both inventory as well as service times. To do this entails the management of a distribution network with more decision options than a traditional retailer. The online retailer, not the customer, decides from where items will ship, by what shipping method, and ho...

In this research, an integrated inventory problem is formulated for a single-vendor multiple-retailer supply chain that works according to the vendor managed inventory policy. The model is derived based on the economic order quantity in which shortages with penalty costs at the retailers` level is permitted. As predicting customer demand is the most important problem in inventory systems and th...

Purpose The purpose of this study is to show that the use CAM (cognitive analytics management) methodology a valid tool describe new technology implementations for businesses. Design/methodology/approach Starting from dataset recipes, we were able consumers through variant RFM (recency, frequency and monetary value) model. It has been possible categorize customers into clusters measure their pr...

Product returns present one of the biggest operational challenges in the world of Internet retailing due to the sheer volume and cost of processing returns. But returns also represent an often-missed opportunity to manage customer relationships and build customer loyalty to the retailer. Based upon data from a survey of 464 customers of five different Internet retailers, this article explores h...

In an e-retailing setting, the efficient utilization of inventory, storage space, and labor is paramount to achieving high levels of customer service and company profits. To optimize the storage space and labor, a retailer will split the warehouse into two storage regions with different densities. One region is for picking customer orders and the other to hold reserve stock. As a consequence, t...