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The Capacity Decision-Making of Omnichannel Catering Firms Based on Queueing System Considering Customer Reference Behavior

  • Wen Tao Zhan
  • , Xue Ping Wang
  • , Ming Hui Jiang*
  • , Han Jiang
  • , Da Huo
  • , Yun Tao Liu
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology
  • Harbin Financial Service Bureau
  • Nanyang Technological University

Research output: Contribution to journalArticlepeer-review

Abstract

Omnichannel catering firms need to pay attention to the consumer behavior of customers in both online and offline channels to make the corresponding capacity decisions. However, customers’ consumption behavior is not only affected by base utility, but also by reference utility, which indicates that customers have reference dependence when making consumption decisions. In order to better help omnichannel catering firms to make capacity decisions more in line with customer consumption behavior in their actual operations, this paper adopts the queuing theory to construct an optimal capacity decision-making model for omnichannel catering firms. We also analyzed the impact of channel information availability on customer reference behavior and the subsequent impact on the firm’s optimal decision-making. The findings were as follows: when the channel information is unavailable, customers in each channel take their expectation of waiting time as the reference point. With the improvement of the sensitivity of customers in different channels to the reference point, firms should improve their safety capacity to meet customers’ needs. Moreover, at a higher reference point, the increase in customer sensitivity can make the firm obtain higher profits. When channel information is available, customers take the waiting time of customers in different channels as the reference point, and the increased sensitivity of online customers to the reference point will prompt firms to reduce safety capacity. Comparing the two scenarios, we also found that omnichannel catering firms could develop lower safety capacities and obtain higher profits more easily when channel information is available. This not only contributes to the development of omnichannel catering firms, but also expands the application scope of reference theory.

Original languageEnglish
Article number229
JournalSystems
Volume10
Issue number6
DOIs
StatePublished - Dec 2022
Externally publishedYes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production

Keywords

  • capacity management
  • omnichannel
  • queuing theory
  • reference behavior

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