Page 15 - Faculty Research Publication Booklet_Apr 2022_Mar 2023_Final
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Most supply chain and production systems faced multiple
Kumar, A. (2022). Modelling retail manufacturing and delivery challenges during COVID-19
and transformed their supply chain for improved customer
inventory pricing policies under service. These challenges are mostly related to stocking and
service level and promotional managing the inventory flow throughout the supply chain (from
manufacturer to end consumer). Due to the COVID-19 travel and
efforts during COVID-19. movement restrictions, inventory reorganization is necessary
for fulfilling consumer demand with adequate service facilities.
Journal of Cleaner Production, The safety and serviceability of inventory consumption is the
primary concern of many retail grocery stores and consumers.
381, 134784. Maintaining the supply of groceries items during and post
COVID-19 time without disruption is a real operational and policy
challenge. Therefore, this research tries to solve an inventory
pricing mechanism and retailer’s profit under the optimal service
level and retailers’ promotional efforts. The proposed optimization
model is validated in the grocery retail sector. The grocery retail
market situation is modelled when the demand for the grocery
products (which may be essential items) and selling price depend
on the investment in item promotional-effort and consumer-
serviceability. The retail grocery store’s investment in the product
promotional efforts, such as awareness of the item availability
and no-contact delivery which, may attract consumers.
Therefore, the proposed inventory consumption is modelled with
an optimization problem to maximize the store profit with the
optimal investment in promotional activities and service facilities
to the consumers and maintain an optimal replenishment cycle.
The optimization model is tested with three different cases (no
investment in promotional efforts, no investment in service facility,
and investment in both) of investment to maximize the retailer’s
profit and stock availability. The optimality results depicted that
investment in promotional efforts and service facility givens
higher profit to the retailer. The proposed optimization model’s
policy implications would help grocery retail store managers
to develop operational strategies for maximizing profit with the
optimal service level and promotional efforts.
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