An Introduction Of Retail Inventory Management

1926 Words Oct 14th, 2015 8 Pages
Deborah Deny
Scott Rochat
An Introduction to Retail Inventory Management – Part 1

Motivation: Currently a company XYZ has multiple products let’s say Pi, i = 1, 2…, 82, and they must meet a demand for their customers let’s say Dj, j = 1, 2…, 40. The current method for placing orders is relying on the owners knowledge in the industry from being in business for over twenty years, but as he is looking to retire he is looking for a more standard way to determine what products to carry and how many. Being a business of course the owner wants to maximize his profit margins as his objective. As for the constraints we will look at the space restriction, supplier limitations, and customer demands. In the end we should have an integer programming model that will allow the owner to check if his inventory will meet his demand.

Literary Review:

“An Analysis of Order Fulfilment Approaches for Delivering Variety and Customisatoin” by Bart MacCarthy

This article describes the different approaches to determining demand requirements and fulfilling them. The author separates the different approaches by separating them out into categories of stockists, builders, customisers, high clock speed, and open systems. Understanding what category our problem falls under will set the tone for the entire building process of the problem. Ours falls under the “open systems” category. This is because for our problem we have a minimum requirement from each supplier, but that is not for each order,…

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