The consequences for manufacturers of changes in retail distribution

The consequences for manufacturers of changes in retail distribution

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Article ID: iaor19961236
Country: Netherlands
Volume: 64
Issue: 3
Start Page Number: 457
End Page Number: 461
Publication Date: Feb 1993
Journal: European Journal of Operational Research
Authors:
Keywords: philosophy, distribution, retailing
Abstract:

When the major food retailers moved from having store deliveries to central warehousing, they sought to reduce the prices paid to the manufacturers by the cost of warehousing and retail deliveries. A biscuit manufacturer had to decide quickly by how much it could afford to reduce its prices if profits were not to be eroded. The analysis illustrates the need for logical problem structuring rather than the use of mathematical techniques.

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