IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v73y2023ics0969698923000565.html
   My bibliography  Save this article

Resource reallocation strategies for sustainable efficiency improvement of retail chains

Author

Listed:
  • Gupta, Anshu
  • Pachar, Nomita
  • Jain, Akansha
  • Govindan, Kannan
  • Jha, P.C.

Abstract

Sustainability is an important agenda for retail businesses in the present times. To create long-term value for customers, retail businesses are required to adopt approaches that can enable them to integrate operational efficiency with concerns for environmental and social sustainability. Optimal deployment of resources among the several stores run by a retail chain, with an objective of maximizing sustainable efficiency, is an enabling step in this direction. This research finds three main contributions to the body of knowledge: (1) resource reallocation models are proposed based on data envelopment analysis (DEA), integrating sustainability in the efficiency measurement model and aiming for improvement in the aggregated efficiency, (2) the proposed models integrate selective centralized and decentralized reallocation decisions according to the input-output characteristics, and (3) different scenarios are explored depending on whether the total resources are to be kept the same or reduced through reallocations according to the management's objectives. The application of the proposed models is illustrated with the case study of a supermarket retail chain.

Suggested Citation

  • Gupta, Anshu & Pachar, Nomita & Jain, Akansha & Govindan, Kannan & Jha, P.C., 2023. "Resource reallocation strategies for sustainable efficiency improvement of retail chains," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000565
    DOI: 10.1016/j.jretconser.2023.103309
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698923000565
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2023.103309?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Teresa Vallet‐Bellmunt & Iluminada Fuertes‐Fuertes & María Luisa Flor, 2023. "Reporting Sustainable Development Goal 12 in the Spanish food retail industry. An analysis based on Global Reporting Initiative performance indicators," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 695-707, March.
    2. R.P. Manatkar & Kondapaneni Karthik & Sri Krishna Kumar & Manoj Kumar Tiwari, 2016. "An integrated inventory optimization model for facility location-allocation problem," International Journal of Production Research, Taylor & Francis Journals, vol. 54(12), pages 3640-3658, June.
    3. Moghaddas, Zohreh & Tosarkani, Babak Mohamadpour & Yousefi, Samuel, 2022. "Resource reallocation for improving sustainable supply chain performance: An inverse data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 252(C).
    4. Pachkova, Elena V., 2009. "Restricted reallocation of resources," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1049-1057, August.
    5. Chih-Ching Yang, 2017. "Local resource reallocation considering practical feasibility: a centralized data envelopment analysis approach," Applied Economics, Taylor & Francis Journals, vol. 49(56), pages 5709-5721, December.
    6. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    7. Holzapfel, Andreas & Kuhn, Heinrich & Sternbeck, Michael G., 2018. "Product allocation to different types of distribution center in retail logistics networks," European Journal of Operational Research, Elsevier, vol. 264(3), pages 948-966.
    8. Lei Fang & Hecheng Li & Zhongbin Wang, 2021. "Centralized Resource Allocation Based on the Bargaining Approach," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 38(02), pages 1-18, April.
    9. Cecilio Mar-Molinero & Diego Prior & Maria-Manuela Segovia & Fabiola Portillo, 2014. "On centralized resource utilization and its reallocation by using DEA," Annals of Operations Research, Springer, vol. 221(1), pages 273-283, October.
    10. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    11. Yu, Ming-Miin & Chern, Ching-Chin & Hsiao, Bo, 2013. "Human resource rightsizing using centralized data envelopment analysis: Evidence from Taiwan's Airports," Omega, Elsevier, vol. 41(1), pages 119-130.
    12. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    14. Albors-Garrigos, Jose, 2020. "Barriers and enablers for innovation in the retail sector: Co-innovating with the customer. A case study in grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    15. Baldin, Andrea, 2017. "A DEA approach for selecting a bundle of tickets for performing arts events," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 190-200.
    16. Anshu Gupta & Nomita Pachar & P.C. Jha, 2021. "Centralised resource reallocation and reduction with common weight DEA model," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 12(3), pages 179-203.
    17. Wu, Jie & Zhu, Qingyuan & Liang, Liang, 2016. "CO2 emissions and energy intensity reduction allocation over provincial industrial sectors in China," Applied Energy, Elsevier, vol. 166(C), pages 282-291.
    18. Gong, Yeming & Liu, Jiawen & Zhu, Joe, 2019. "When to increase firms’ sustainable operations for efficiency? A data envelopment analysis in the retailing industry," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1010-1026.
    19. Agrawal, Narendra & Smith, Stephen A., 2013. "Optimal inventory management for a retail chain with diverse store demands," European Journal of Operational Research, Elsevier, vol. 225(3), pages 393-403.
    20. Yu, Wantao & Ramanathan, Ramakrishnan, 2009. "An assessment of operational efficiency of retail firms in China," Journal of Retailing and Consumer Services, Elsevier, vol. 16(2), pages 109-122.
    21. Wade D. Cook & Moshe Kress, 1990. "A Data Envelopment Model for Aggregating Preference Rankings," Management Science, INFORMS, vol. 36(11), pages 1302-1310, November.
    22. Asmild, Mette & Paradi, Joseph C. & Pastor, Jesus T., 2009. "Centralized resource allocation BCC models," Omega, Elsevier, vol. 37(1), pages 40-49, February.
    23. Pandey, Pallavi & Singh, Saumya & Pathak, Pramod, 2021. "An exploratory study on factors contributing to job dissatisfaction of retail employees in India," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    24. Ang, Sheng & Liu, Pei & Yang, Feng, 2020. "Intra-Organizational and inter-organizational resource allocation in two-stage network systems," Omega, Elsevier, vol. 91(C).
    25. Ashish Dwivedi & Dindayal Agrawal & Ajay Jha & Massimo Gastaldi & Sanjoy Kumar Paul & Idiano D’Adamo, 2021. "Addressing the Challenges to Sustainable Initiatives in Value Chain Flexibility: Implications for Sustainable Development Goals," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 179-197, December.
    26. Nasiri, G. Reza & Deymeh, Hadi & Karimi, Behrooz & Miandoabchi, Elnaz, 2021. "Incorporating sales and marketing considerations into a competitive multi-echelon distribution network design problem with pricing strategy in a stochastic environment," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    27. Laure Lavorata, 2014. "Influence of retailers’ commitment to sustainable development on store image, consumer loyalty and consumer boycotts: Proposal for a model using the theory of planned behavior," Post-Print halshs-01764748, HAL.
    28. Justas Streimikis & Mahyar Kamali Saraji, 2022. "Green productivity and undesirable outputs in agriculture: a systematic review of DEA approach and policy recommendations," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 819-853, December.
    29. Reeti Agarwal & Ankit Mehrotra, 2020. "Extracting performance improvement factors using DEA for a robust Indian retail industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 30(1), pages 107-125.
    30. Sebastián Lozano & Gabriel Villa, 2004. "Centralized Resource Allocation Using Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 22(1), pages 143-161, July.
    31. Kyungwan Ko & Meehyang Chang & Eun-Song Bae & Daecheol Kim, 2017. "Efficiency Analysis of Retail Chain Stores in Korea," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    32. Peter Jones & Daphne Comfort & David Hillier, 2018. "The sustainable development goals and retailing," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 14(5), pages 608-618.
    33. Smriti Pande & G.N. Patel, 2013. "Assessing cost efficiency of pharmacy retail stores and identification of efficiency drivers," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 14(4), pages 368-385.
    34. Fare, R. & Grabowski, R. & Grosskopf, S. & Kraft, S., 1997. "Efficiency of a fixed but allocatable input: A non-parametric approach," Economics Letters, Elsevier, vol. 56(2), pages 187-193, October.
    35. Salmani, Yasamin & Partovi, Fariborz Y., 2021. "Channel-level resource allocation decision in multichannel retailing: A U.S. multichannel company application," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    36. Govindan, Kannan & Kannan, Devika & Jørgensen, Thomas Ballegård & Nielsen, Tim Straarup, 2022. "Supply Chain 4.0 performance measurement: A systematic literature review, framework development, and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    37. Kim, Woohyoung & Kim, Hyun & Hwang, Jinsoo, 2020. "Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    38. HATAMI-MARBINI, Adel & TAVANA, Madjid & SAATI, Saber & AGRELL, Per J., 2013. "Allocating fixed resources and setting targets using a common-weights DEA approach," LIDAM Reprints CORE 2474, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    39. Keh, Hean Tat & Chu, Singfat, 2003. "Retail productivity and scale economies at the firm level: a DEA approach," Omega, Elsevier, vol. 31(2), pages 75-82, April.
    40. Lavorata, Laure, 2014. "Influence of retailers’ commitment to sustainable development on store image, consumer loyalty and consumer boycotts: Proposal for a model using the theory of planned behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 1021-1027.
    41. Lawrence M. Seiford & Joe Zhu, 1999. "Profitability and Marketability of the Top 55 U.S. Commercial Banks," Management Science, INFORMS, vol. 45(9), pages 1270-1288, September.
    42. Ane Elixabete Ripoll-Zarraga & Sebastián Lozano, 2020. "A centralised DEA approach to resource reallocation in Spanish airports," Annals of Operations Research, Springer, vol. 288(2), pages 701-732, May.
    43. Luis Miguel Fonseca & José Pedro Domingues & Alina Mihaela Dima, 2020. "Mapping the Sustainable Development Goals Relationships," Sustainability, MDPI, vol. 12(8), pages 1-15, April.
    44. Joong Hoon Ko & Daecheol Kim, 2019. "The Effects of Maturity of Project Portfolio Management and Business Alignment on PMO Efficiency," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    45. Dimitris Balios & Nikolaos Eriotis & Alexandra Fragoudaki & Dimitrios Giokas, 2015. "Economic efficiency of Greek retail SMEs in a period of high fluctuations in economic activity: a DEA approach," Applied Economics, Taylor & Francis Journals, vol. 47(33), pages 3577-3593, July.
    46. HATAMI-MARBINI, Adel & TAVANA, Madjid & AGRELL, Per J & HOSSEINZADEH LOTFI, Farhad, 2015. "A common-weights DEA model for centralized resource reduction and target setting," LIDAM Reprints CORE 2642, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    47. Amos Tversky & Itamar Simonson, 1993. "Context-Dependent Preferences," Management Science, INFORMS, vol. 39(10), pages 1179-1189, October.
    48. Yeming Gong & Jiawen Liu & Joe Zhu, 2019. "When to increase firms’ sustainable operations for efficiency? A data envelopment analysis in the retailing industry," Post-Print hal-02312352, HAL.
    49. Toshiyuki Sueyoshi & Mika Goto, 2019. "DEA Non-Radial Approach for Resource Allocation and Energy Usage to Enhance Corporate Sustainability in Japanese Manufacturing Industries," Energies, MDPI, vol. 12(9), pages 1-22, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Wen & Xu, Jiaqi & She, Shengxiang, 2023. "Green economic development by increasing efficiency of natural resource consumption," Resources Policy, Elsevier, vol. 85(PB).
    2. Wenhan Fu & Sheng Jing & Qinming Liu & Hao Zhang, 2023. "Resilient Supply Chain Framework for Semiconductor Distribution and an Empirical Study of Demand Risk Inference," Sustainability, MDPI, vol. 15(9), pages 1-14, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nomita Pachar & Jyoti Dhingra Darbari & Kannan Govindan & P. C. Jha, 2022. "Sustainable performance measurement of Indian retail chain using two-stage network DEA," Annals of Operations Research, Springer, vol. 315(2), pages 1477-1515, August.
    2. Lozano, Sebastián & Contreras, Ignacio, 2022. "Centralised resource allocation using Lexicographic Goal Programming. Application to the Spanish public university system," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    3. Menghan Chen & Sheng Ang & Lijing Jiang & Feng Yang, 2020. "Centralized resource allocation based on cross-evaluation considering organizational objective and individual preferences," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(2), pages 529-565, June.
    4. Adel Hatami-Marbini & Zahra Ghelej Beigi & Hirofumi Fukuyama & Kobra Gholami, 2015. "Modeling Centralized Resources Allocation and Target Setting in Imprecise Data Envelopment Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1189-1213, November.
    5. Tao Ding & Ya Chen & Huaqing Wu & Yuqi Wei, 2018. "Centralized fixed cost and resource allocation considering technology heterogeneity: a DEA approach," Annals of Operations Research, Springer, vol. 268(1), pages 497-511, September.
    6. Ang, Sheng & Liu, Pei & Yang, Feng, 2020. "Intra-Organizational and inter-organizational resource allocation in two-stage network systems," Omega, Elsevier, vol. 91(C).
    7. Feng Li & Qingyuan Zhu & Liang Liang, 2019. "A new data envelopment analysis based approach for fixed cost allocation," Annals of Operations Research, Springer, vol. 274(1), pages 347-372, March.
    8. Fang, Lei, 2015. "Centralized resource allocation based on efficiency analysis for step-by-step improvement paths," Omega, Elsevier, vol. 51(C), pages 24-28.
    9. Yu, Ming-Miin & Chen, Li-Hsueh, 2016. "Centralized resource allocation with emission resistance in a two-stage production system: Evidence from a Taiwan’s container shipping company," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 650-671.
    10. Cesaroni, Giovanni, 2020. "Technically and cost-efficient centralized allocations in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    11. Mehdi Soltanifar & Farhad Hosseinzadeh Lotfi & Hamid Sharafi & Sebastián Lozano, 2022. "Resource allocation and target setting: a CSW–DEA based approach," Annals of Operations Research, Springer, vol. 318(1), pages 557-589, November.
    12. Du, Juan & Cook, Wade D. & Liang, Liang & Zhu, Joe, 2014. "Fixed cost and resource allocation based on DEA cross-efficiency," European Journal of Operational Research, Elsevier, vol. 235(1), pages 206-214.
    13. Wang, Xing-Xin & He, Ai-Zhong, 2022. "The impact of retailers’ sustainable development on consumer advocacy: A chain mediation model investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    14. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    15. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2021. "A review of DEA approaches applying a common set of weights: The perspective of centralized management," European Journal of Operational Research, Elsevier, vol. 294(1), pages 3-15.
    16. Afsharian, Mohsen & Ahn, Heinz & Thanassoulis, Emmanuel, 2019. "A frontier-based system of incentives for units in organisations with varying degrees of decentralisation," European Journal of Operational Research, Elsevier, vol. 275(1), pages 224-237.
    17. Dai, Qianzhi & Li, Yongjun & Lei, Xiyang & Wu, Dengsheng, 2021. "A DEA-based incentive approach for allocating common revenues or fixed costs," European Journal of Operational Research, Elsevier, vol. 292(2), pages 675-686.
    18. Hamid Sharafi & Farhad Hosseinzadeh Lotfi & Gholam Reza Jahanshahloo & Somayeh Razipour-GhalehJough, 2020. "Fair Allocation Fixed Cost Using Cross-Efficiency Based on Pareto Concept," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(01), pages 1-23, January.
    19. Mostafa Davtalab-Olyaie & Hadis Mahmudi-Baram & Masoud Asgharian, 2023. "Measuring individual efficiency and unit influence in centrally managed systems," Annals of Operations Research, Springer, vol. 321(1), pages 139-164, February.
    20. Contreras, I. & Lozano, S., 2020. "Allocating additional resources to public universities. A DEA bargaining approach," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:73:y:2023:i:c:s0969698923000565. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.