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: | Mercer Alan |
Keywords: | philosophy, distribution, retailing |
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.