Threshold distance versus side payment to reduce the cannibalization effect in retail chain expansion

Pelegrín Pelegrín, Blas; Fernández Hernández, Pascual; Pelegrín García, Juan Diego; García Pérez, María Dolores

Publication:
Threshold distance versus side payment to reduce the cannibalization effect in retail chain expansion

dc.contributor.author	Pelegrín Pelegrín, Blas
dc.contributor.author	Fernández Hernández, Pascual
dc.contributor.author	Pelegrín García, Juan Diego
dc.contributor.author	García Pérez, María Dolores
dc.contributor.department	Estadística e Investigación Operativa
dc.date.accessioned	2024-01-28T08:00:30Z
dc.date.available	2024-01-28T08:00:30Z
dc.date.issued	2019
dc.description	©2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the Accepted, version of a Published Work that appeared in final form in IMA Journal of Management Mathematics. To access the final edited and published work see https://doi.org/10.1093/imaman/dpx011	es
dc.description.abstract	We deal with the store location problem for an expanding retail chain in competition with other retail chains that offer the same type of product. The aim of the expanding retail chain is profit maximization, but counteracting the possible loss in profit of the existing stores in the chain caused by the appearance of the new ones. In this article, we compare two approaches, one based on a threshold distance and another based on a side payment, to reduce the effect of cannibalization of existing stores under a delivered pricing policy in a transportation network. It is proved that optimal store locations can be found at the nodes of the network and an integer linear programming model is shown to solve the store location problem for each approach. A study with data of Spanish municipalities is presented where the percentage of profit increase after the expansion and the percentage of cannibalized profit corresponding to the optimal solutions of the two models are compared for different combinations of the threshold distance, the side payment, and the number of new stores.	es
dc.format	application/pdf	es
dc.format.extent	19	es
dc.identifier.citation	IMA Journal of Management Mathematics
dc.identifier.doi	https://doi.org/10.1093/imaman/dpx011
dc.identifier.issn	1471-678X
dc.identifier.issn	1471-6798
dc.identifier.uri	http://hdl.handle.net/10201/137859
dc.language	eng	es
dc.publisher	OXFORD UNIVERSITY PRESS. ENGLAND	es
dc.relation	This research has been supported by the Ministry of Economy and Competitiveness of Spain under the research project MTM2015-70260-P, and the Fundaci´on S´eneca (The Agency of Science and Technology of the Region of Murcia) under the research project 19241/PI/14.	es
dc.relation.publisherversion	https://academic.oup.com/imaman/article/30/1/105/4599199	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Cannibalization	es
dc.subject	Chain expansion	es
dc.subject	Discrete optimization	es
dc.subject	Location	es
dc.subject	Retailing	es
dc.subject.other	CDU::5 - Ciencias puras y naturales::51 - Matemáticas	es
dc.title	Threshold distance versus side payment to reduce the cannibalization effect in retail chain expansion	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es