Session | ||
MA9 - RL5: Food waste and grocery industry
| ||
Presentations | ||
Individualized substitution suggestions in online grocery retailing 1IE Business School, IE University, Madrid, Spain; 2Department of Technology, Operations, and Statistics, Leonard N. Stern School of Business, New York University, New York Presenting online retail customers with individualized substitution suggestions (ISS) when an item is forecasted to be out-of-stock (OOS) is a challenging problem. We investigate how to provide more relevant ISS by employing state-of-the-art choice models. In collaboration with a partner online retail platform, we assess the value of our model by conducting a field experiment. Online retailers can obtain benefits both in revenue and in costs from presenting customers with improved ISS. Seeing beauty in ugly produce: a food waste perspective University of Texas Dallas Problem: Does selling ugly produce in grocery stores reduce food waste? Methodology/results: Modeling the supply chain, we find that selling ugly produce reduces waste but lowers retailer profit. Dedicated ugly produce retailers achieve the same waste reduction, explaining the rise of startups. A food landfill tax can significantly reduce waste. Managerial implications: Our findings support the value of ugly produce startups, informing efforts to combat food waste and hunger. Retailing strategies of imperfect produce and the battle against food waste TBD Problem: How should retailers handle imperfect produce to reduce food waste? Methodology/results: We analyze discarding, bunching, and differentiating strategies. Increasing acceptance of imperfect produce may not reduce waste. Full-shelf ordering may not increase waste, especially with higher prices. Discarding can decrease waste. Implications: Retailers should choose strategies wisely, consider full-shelf ordering, and educate consumers on imperfect produce. |