Resource reallocation strategies for sustainable efficiency improvement of retail chains

Anshu Gupta, Nomita Pachar, Akansha Jain, Kannan Govindan*, P. C. Jha

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
Article number103309
JournalJournal of Retailing and Consumer Services
Volume73
Number of pages13
ISSN0969-6989
DOIs
Publication statusPublished - Jul 2023

Keywords

  • Customer satisfaction
  • Data envelopment analysis (DEA)
  • Environmental sustainability
  • Integrated centralized-decentralized reallocation
  • Resource reallocation
  • Sustainable efficiency improvement

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