An Introduction Of Retail Inventory Management

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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…show more content…
“Brand Management in Small and Medium-Sized (SME) Retailers: A Future Research Agenda” by Richard Mitchell The purpose of this article is for all people not familiar with business and how brand management works. It is the key to understanding how to read the outcome of the integer programing problem we have created. It gives guidelines and charts if a brand or style of a brand should be dropped and replaced with something similar. It also provides an idea of using binary numbers as your decision variable while determining another function to see if you need a brand or not. A “1” would signify that you want to sell that product in the store and a “0” means you should drop the product from your shelves. “The Model Stock Plan in Small Stores” by N.H. Comish This article talks about inventory models for the small business man making an annual profit of less than $100,000. The company XYZ does make a slight amount more than that, but in the eyes of the Federal Government it is still considered a small business. Another way the article identifies a small business is when it has less than 15 employees which company XYZ does. The model the author wants the reader to use is very reliant on economic trends. This leads the reader to realize they are talking about an EOQ (Economic Order Quantity) model but using the company’s percent share of the market to scale
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