In 2002, Travelocity lost revenue and market share to competition as the business environment changed. Travelocity and Sabre collaborated to develop the enterprise network model (ENM). The ENM combines discrete choice customer modeling with simulation and large-scale optimization to improve Travelocity’s management supplier agreements, customer marketing, and product pricing. The ENM has helped...

a r t i c l e i n f o This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-su...

This paper considers a two stages pharmaceutical supply chain (PSC) consisting of a pharmaceutical manufacturer (pharma-manufacturer) that supplies one type of pharmaceutical product to a pharma-retailer. The customer demand rate for the pharmaceutical product is dependent on the pharma-retailer’s current-inventory level. The pharma-retailer determines the order quantity ( ) value as decision v...

In today’s fast marketing over the Internet or online, many retailers want to trade at the same time and change their marketing strategy to attract more customers. Some of the customers may decide to cancel their orders partially with a retailer due to various reasons such as increase in customer’s waiting time, loss of customer’s goodwill on retailer’s business, attractive promotional schemes ...

A common problem that arises in many applications in practice is to determine the subset (or 3 assortment) of items to offer to a user. We focus on the concrete setting in which a retailer must 4 decide the subset of products to offer to each arriving customer (either online or in a brick-and-mortar 5 store). The retailer chooses the subset from a large universe U of products with the objective...

Much research has been done to understand the motivations of consumers to choose among online retailers and the retailer factors driving customer satisfaction (e.g., Kim et al. 2009; Kotha et al. 2004; Pan et al. 2002; Qu et al. 2008; Smith et al. 2000; Wolfinbarger and Gilly 2003). Concentrating on e-tailing service quality, Wolfinbarger and Gilly (2003) argue that four factors—website design,...

A Vendor-Managed Inventory (VMI) supply chain is modeled using discrete-event simulation. The supply chain consists of a supplier (vendor) with a manufacturing facility and a distribution center, and a customer (retailer) with a distribution center and an outlet store. The information shared between the retailer and the vendor is subject to error and delays. The impacts of sharing erroneous dat...

We study the strategic impacts of behavioral price discrimination on manufacturers and retailers in a distribution channel when there are switching costs in consumer demand. Unlike previous empirical studies of behavioral price discrimination, which rely only on differences in price elasticity across customers, our pricing model allows the strategies of channel members to additionally account f...

The retailer’s optimal procurement quantity and the number of transfers from the warehouse to the display area are determined when demand is decreasing due to recession and items in inventory are subject to deterioration at a constant rate. The objective is to maximize the retailer’s total profit per unit time. The algorithms are derived to find the optimal strategy by retailer. Numerical examp...