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Premium E-Grocery: Exploring Value in Logistics Integrated Service Solutions
Sabancı University, Istanbul, Turkey.
Sabancı University, Istanbul, Turkey.
Özyeğin University, Istanbul, Turkey.ORCID iD: 0000-0003-2248-0802
2009 (English)Conference paper, Published paper (Refereed)
Abstract [en]

E-grocery is gradually becoming viable or a necessity for many families. Yet, most e-supermarkets are 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.

Place, publisher, year, edition, pages
2009.
Keywords [en]
Dynamic consumer-led demand, e-grocery, logistics, premium goods
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:hj:diva-39147OAI: oai:DiVA.org:hj-39147DiVA, id: diva2:1198223
Conference
International Conference for Prospects for Research in Transport and Logistics on a Regional – Global Perspective, February 12-14, 2009, Istanbul, Turkey.
Available from: 2018-04-17 Created: 2018-04-17 Last updated: 2020-01-30Bibliographically approved

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Özturkcan, Selcen

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