Author
Bozkaya, B., Kervenoael, R. de, Aykaç, Didem Selcen Öztürkcan
Publication Date
2009-02-12
Subject
Dynamic consumer-led demand, E-grocery, Logistics, Premium goods
Type
Document
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Record ID
39ce5a5f-eada-443f-8266-35f69546fab3
Library Location
Business Administration
Date
2009-02-12
Notes
TÜBİTAK ; Migros T.A.Ş.
Sample Text
E-grocery is gradually becoming viable or a necessity for many families. Yet, most e-supermarketsare seen as providers of low value “staple” and bulky goods mainly. While each store has a large number of SKU available, these products are mainly necessity goods with low marginal value for hedonistic consumption. A need to acquire diverse products (e.g., organic), premium priced products (e.g., wine) for special occasions (e.g., anniversary, birthday), or products just for health related reasons (e.g., allergies, diabetes) are yet to be served via one-stop e-tailers. In this paper, we design a mathematical model that takes into account consumers’ geo demographics and multi-product sourcing capacity for creating critical mass and profit. Our mathematical model is a variant of Capacitated Vehicle Routing Problem with Time Windows (CVRPTW), which we extend by adding intermediate locations for trucks to meet and exchange goods. We illustrate our model for the city of Istanbul using GIS maps, and discuss its various extensions as well as managerial implications.
