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Product promotion effectiveness : root causes of stock-outs

Author(s)
Nigam, Alankrita
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Massachusetts Institute of Technology. Engineering Systems Division.
Advisor
Daniel Steeneck.
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MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided. http://dspace.mit.edu/handle/1721.1/7582
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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).
 
Date issued
2016
URI
http://hdl.handle.net/1721.1/107513
Department
Massachusetts Institute of Technology. Supply Chain Management Program
Publisher
Massachusetts Institute of Technology
Keywords
Supply Chain Management Program., Engineering Systems Division.

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