Improving Microretailer and Consumer Welfare in Developing Economies: Replenishment Strategies and Market Entries

Published Online:https://doi.org/10.1287/msom.2017.0700

References

  • An J, Cho SH, Tang CS (2015) Aggregating smallholder farmers in emerging economies. Production Oper. Management 24(9):1414–1429.CrossrefGoogle Scholar
  • Anderson SP, De Palma A, Thisse JF (1992) Discrete Choice Theory of Product Differentiation (MIT Press, Cambridge, MA).CrossrefGoogle Scholar
  • Anily S, Haviv M (2007) The cost allocation problem for the first order interaction joint replenishment model. Oper. Res. 55(2):292–302.LinkGoogle Scholar
  • Banerjee AV, Duflo E (2007) The economic lives of the poor. J. Econom. Perspect. 21(1):141–167.CrossrefGoogle Scholar
  • Bernstein F, Federgruen A (2005) Decentralized supply chains with competing retailers under demand uncertainty. Management Sci. 51(1):18–29.LinkGoogle Scholar
  • Blanco EE, Fransoo JC (2013) Reaching 50 million nanostores: Retail distribution in emerging megacities. BETA Research School Working Paper series 404, Eindhoven University of Technology, Eindhoven, Netherlands.Google Scholar
  • Business Diary Philippines (2017) How to start a sari-sari store business. (October 29), http://businessdiary.com.ph/1807/how-to-start-a-sari-sari-store-business/.Google Scholar
  • Cachon GP, Netessine S (2006) Game theory in supply chain analysis. Johnson MP, Norman B, Secomandi N, Gray P, Greenberg HJ, eds. Models, Methods, and Applications for Innovative Decision Making. Tutorials in Operations Research, Vol. 2006 (INFORMS, Catonsville, MD), 200–233.LinkGoogle Scholar
  • Cai G, Dai Y, Zhou S (2012) Exclusive channels and revenue sharing in a complementary goods market. Marketing Sci. 31(1):172–187.LinkGoogle Scholar
  • Cattani KD, Gilland WG, Swaminathan JM (2004) Coordinating traditional and Internet supply chains. Simchi-Levi D, Wu SD, Shen ZM, eds. Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era (Springer, New York), 643–677.CrossrefGoogle Scholar
  • Çetinkaya S, Lee CY (2000) Stock replenishment and shipment scheduling for vendor-managed inventory systems. Management Sci. 46(2):217–232.LinkGoogle Scholar
  • Chen L, Kim SH, Lee HL (2017) Enabling healthcare delivery through vehicle maintenance. Working paper, Cornell University, Ithaca, NY.Google Scholar
  • Chen RR, Roma P (2011) Group buying of competing retailers. Production Oper. Management 20(2):181–197.CrossrefGoogle Scholar
  • Chen YJ, Tang CS (2015) The economic value of market information for farmers in developing economies. Production Oper. Management 24(9):1441–1452.CrossrefGoogle Scholar
  • Chen YJ, Shanthikumar JG, Shen ZJM (2013) Training, production, and channel separation in ITC’s e-Choupal network. Production Oper. Management 22(2):348–364.CrossrefGoogle Scholar
  • Chen YJ, Shanthikumar JG, Shen ZJM (2015) Incentive for peer-to-peer knowledge sharing among farmers in developing economies. Production Oper. Management 24(9):1430–1440.CrossrefGoogle Scholar
  • Chu LY, Shen ZJM (2010) A power-of-two ordering policy for one-warehouse multiretailer systems with stochastic demand. Oper. Res. 58(2):492–502.LinkGoogle Scholar
  • CSI Market (2017) Grocery stores industry profitability. Accessed June 23, 2018, https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=1305.Google Scholar
  • Dixit A (1979) A model of duopoly suggesting a theory of entry barriers. Bell J. Econom. 10(1):20–32.CrossrefGoogle Scholar
  • Drishtee (2017) Rural distribution. Accessed June 23, 2018, http://www.drishtee.org/?page_id=61.Google Scholar
  • Dror M, Hartman BC (2011) Survey of cooperative inventory games and extensions. J. Oper. Res. Soc. 62(4):565–580.CrossrefGoogle Scholar
  • Federgruen A, Zheng YS (1992) The joint replenishment problem with general joint cost structures. Oper. Res. 40(2):384–403.LinkGoogle Scholar
  • Goodman C, Kachur SP, Abdulla S, Mwageni E, Nyoni J, Schellenberg JA, Mills A, Bloland P (2004) Retail supply of malaria-related drugs in rural Tanzania: Risks and opportunities. Tropical Medicine Internat. Health 9(6):655–663.CrossrefGoogle Scholar
  • Government of NCT of Delhi (2017) Delhi Consumer’s Co-Operative Wholesale Store Ltd. Accessed June 23, 2018, http://delhi.gov.in/wps/wcm/connect/doit_dccws/DOIT_DCCWS/Home.Google Scholar
  • Häckner J (2000) A note on price and quantity competition in differentiated oligopolies. J. Econom. Theory 93(2):233–239.CrossrefGoogle Scholar
  • He Y, Yin S (2015) Joint selling of complementary components under brand and retail competition. Manufacturing Service Oper. Management 17(4):470–479.LinkGoogle Scholar
  • Institute for Financial and Management Research (2011) The base of pyramid distribution challenge: Evaluating alternate distribution models of energy products for rural base of pyramid in India. Accessed June 23, 2018, https://www.microfinancegateway.org/sites/default/files/mfg-en-paper-the-base-of-pyramid-distribution-challenge-evaluating-alternate-distribution-models-of-energy-products-for-rural-base-of-pyramid-in-india-2011.pdf.Google Scholar
  • International Fund for Agricultural Development (2001) Markets for the rural poor. Rural Poverty Report 2001: The Challenge of Ending Rural Poverty (Oxford University Press, Oxford, UK), 161–187.Google Scholar
  • Karlsson EB (2012) Retail in rural regions: Exploring ways to support rural shops. Accessed June 23, 2018, http://www.rsv.is/files/Skra_0060124.pdf.Google Scholar
  • Kaushik M (2010) The kirana whiplash. Business Today (December 26), http://www.businesstoday.in/magazine/special/the-kirana-whiplash/story/11286.html.Google Scholar
  • Kay E, Lewenstein W (2013) The problem with the “poverty premium.” Harvard Bus. Rev. (April): https://hbr.org/2013/04/the-problem-with-the-poverty-premium.Google Scholar
  • Kumar B, Gogoi M (2017) Fast moving consumer goods industry in rural market of India: A case of mutual reinvigoration. Ushus— J. Bus. Management 12(4):51–65.Google Scholar
  • Lee HL, Tang CS (2017) Socially and environmentally responsible value chain innovations: New operations management research opportunities. Management Sci. 64(3):983–996.LinkGoogle Scholar
  • Lee HL, So KC, Tang CS (2000) The value of information sharing in a two-level supply chain. Management Sci. 46(5):626–643.LinkGoogle Scholar
  • Lowe RF, Montagu D (2009) Legislation, regulation, and consolidation in the retail pharmacy sector in low-income countries. Southern Med. Rev. 2(2):35–44.Google Scholar
  • Lus B, Muriel A (2009) Measuring the impact of increased product substitution on pricing and capacity decisions under linear demand models. Production Oper. Management 18(1):95–113.CrossrefGoogle Scholar
  • Mackintosh M, Banda G, Wamae W, Tibandebage P, eds. (2016) Making Medicines in Africa: The Political Economy of Industrializing for Local Health (Palgrave Macmillan, Basingstoke, UK).CrossrefGoogle Scholar
  • McCoy JH, Lee HL (2014) Using fairness models to improve equity in health delivery fleet management. Production Oper. Management 23(6):965–977.CrossrefGoogle Scholar
  • MEDS (2017) Supply chain. Accessed June 23, 2018, http://www.meds.or.ke/index.php/our-services/supply-chain.Google Scholar
  • Mishra BK, Raghunathan S (2004) Retailer-vs. vendor-managed inventory and brand competition. Management Sci. 50(4):445–457.LinkGoogle Scholar
  • Neuwirth B (2012) Marketing channel strategies in rural emerging markets. Working paper, Kellogg School of Management, Northwestern University, Evanston, IL.Google Scholar
  • Nieuwoudt T (2012) Consumer goods servicing small groceries in emerging markets. The Supply Chain Lab (July 30), https://thesupplychainlab.blog/2012/07/30/consumer-goods-servicing-small-groceries-in-emerging-markets-2/.Google Scholar
  • Nieuwoudt T (2015) Challenges of micro retailers in frontier markets. The Supply Chain Lab (December 3), https://thesupplychainlab.blog/2015/12/03/micro-retail-challenges-in-emerging-markets/.Google Scholar
  • Organisation for Economic Co-operation and Development (2013) Global forum on competition: Competition and poverty reduction. Accessed June 23, 2018, https://www.oecd.org/daf/competition/competition-and-poverty-reduction2013.pdf.Google Scholar
  • Parker C, Ramdas K, Savva N (2016) Is IT enough? evidence from a natural experiment in India’s agriculture markets. Management Sci. 62(9):2481–2503.LinkGoogle Scholar
  • Prahalad CK (2006) The Fortune at the Bottom of the Pyramid (Prentice Hall, Upper Saddle River, NJ).Google Scholar
  • Rangan VK, Rajan R (2007) Unilever in India: Hindustan Lever’s Project Shakti—Marketing FMCG to the rural consumer. Case 9-505-056, Harvard Business School, Harvard University, Boston.Google Scholar
  • Simanis E (2012) Reality check at the bottom of the pyramid. Harvard Bus. Rev. (June): https://hbr.org/2012/06/reality-check-at-the-bottom-of-the-pyramid.Google Scholar
  • Singh N, Vives X (1984) Price and quantity competition in a differentiated duopoly. RAND J. Econom. 546–554.CrossrefGoogle Scholar
  • Sodhi MS, Tang CS (2014) Supply-chain research opportunities with the poor as suppliers or distributors in developing countries. Production Oper. Management 23(9):1483–1494.CrossrefGoogle Scholar
  • Talluri KT, Van Ryzin GJ (2006) The Theory and Practice of Revenue Management. Price CC, ed. International Series in Operations Research and Management Science, Vol. 68 (Springer, New York).Google Scholar
  • Tang CS, Zhou S (2012) Research advances in environmentally and socially sustainable operations. Eur. J. Oper. Res. 223(3):585–594.CrossrefGoogle Scholar
  • Tata Trusts (2016) Trading in tea. Accessed June 23, 2018, http://tatatrusts.org/article/inside/himmotthan-uttarakhand-tata-himalaya.Google Scholar
  • Tsay AA, Agrawal N (2004) Modeling conflict and coordination in multi-channel distribution systems: A review. Simchi-Levi D, Wu SD, Shen ZM, eds. Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era (Springer, New York),557–606.CrossrefGoogle Scholar
  • Uppari BS, Popescu I, Netessine S (2017) Selling off-grid light to liquidity constrained consumers. Manufacturing Service Oper. Management, ePub ahead of print March 27, https://doi.org/10.1287/msom.2017.0673.Google Scholar
  • Variawa E (2011) Buying behaviour and decision-making criteria of Base of the Pyramid consumers: The influence of packaging on fast moving consumer goods customers brand experience. Unpublished Ph.D. thesis, University of Pretoria, Pretoria, South Africa.Google Scholar
  • von Ravensburg NG (2011) Economic and Other Benefits of the Entreprenuers Cooperative as a Specific Form of Enterprise Cluster (International Labour Organization, Geneva).Google Scholar
  • Yadav P (2013) Value chain innovations for developing economies. Presentation, Supply Chain Thought Leaders Roundtable, University of California, Los Angeles, Los Angeles.Google Scholar
  • Yadav P, Stapleton O, Van Wassenhove LN (2011) Always cola, rarely essential medicines: Comparing medicine and consumer product supply chains in the developing world. Working paper, INSEAD, Fontainebleau, France.Google Scholar
  • Zhang J (2009) Cost allocation for joint replenishment models. Oper. Res. 57(1):146–156.LinkGoogle Scholar
  • Zhang K, Tang CS, Zhou SX (2017) Replenishment strategies for micro-retailers in developing countries. Production Oper. Management. 26(12):2207–2225.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.