Product promotion effectiveness : root causes of stock-outs
Name
962733587-MIT.pdf
Description
Full printable version
Size
6.93 MB
Format
Adobe PDF
Checksum (MD5)
338ee4fa3f1c8a8609a9de6924828df4
Author(s)
Nigam, Alankrita
Advisor(s)
Daniel Steeneck.
Date Issued
2016
Publisher
Massachusetts Institute of Technology
Abstract
The unpredictable demand pattern during promotions leads to lost sales incurred due to frequent stock-outs, affecting the revenue and the brand of both the manufacturer and the retailer. The research focuses on finding out the root-causes of stock-outs in retail stores. It uses the audit response data that informs us of various states for zero on-shelf availability. These responses are used to create a fault-tree diagram that shows how different states could be reached. The root-causes mentioned in the fault-tree diagram are classified as either qualitative or quantitative root-causes. The credibility of quantitative root causes was established through regression analysis while store visits and interviews of different players of the supply chain helped to reason out the qualitative root-causes. Quantitative factors such as replenishment frequency, store sales volume and forecast accuracy seem to indicate a good correlation with stock-outs during promotions.
Description
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016.
"June 2016." Cataloged from PDF version of thesis.
Includes bibliographical references (pages 56-57).
Subjects
Supply Chain Management Program.
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Supply Chain Management Program
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