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Bar Codes Lead to Frequent Deliveries and Superstores

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  • Holmes, Thomas J

Abstract

This article explores the consequences of new information technologies, such as bar codes and computer tracking of inventories, for the optimal organization of retail. The first result is that there is a complementarity between the new information technology and frequent deliveries. This is consistent with the recent move in the retail sector toward higher frequency delivery schedules. The second result is that adoption of the crew technology tends to increase store size. This is consistent with recent increases in store size and the success of the superstore model of retail organization. Copyright 2001 by the RAND Corporation.

Suggested Citation

  • Holmes, Thomas J, 2001. "Bar Codes Lead to Frequent Deliveries and Superstores," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 708-725, Winter.
  • Handle: RePEc:rje:randje:v:32:y:2001:i:4:p:708-25
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    1. Kyle Bagwell & Garey Ramey & Daniel F. Spulber, 1997. "Dynamic Retail Price and Investment Competition," RAND Journal of Economics, The RAND Corporation, pages 207-227.
    2. Kinsey, Jean D. & Senauer, Benjamin & King, Robert P. & Phumpiu, Paul F., 1996. "Changes In Retail Food Delivery: Signals For Producers, Processors And Distributors," Working Papers 14352, University of Minnesota, The Food Industry Center.
    3. Milgrom, Paul & Roberts, John, 1988. " Communication and Inventory as Substitutes in Organizing Production," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(3), pages 275-289.
    4. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
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