Product promotion effectiveness : root causes of stock-outs
Massachusetts Institute of Technology. Engineering Systems Division.
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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.
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).
DepartmentMassachusetts Institute of Technology. Supply Chain Management Program.; Massachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology
Supply Chain Management Program., Engineering Systems Division.