(T, RN,α,p) Inventory Policy for a FMCG Retail Supply Chain

DOI

10.2991/aebmr.k.200812.001How to use a DOI?

Keywords

FMCG Retail, supply chain, exponential smoothing, requisitioning quantity, stock-out, holding cost

Abstract

The scope of this study is limited to the supply chain of a FMCG retail business spreading through retail outlets and connected with the central warehouse. Manual intervention of requisitioning quantity of footwear on daily basis, from the retail outlets to the warehouse, was creating frequent problems of both stock-out resulting loss of sale and higher inventory resulting higher holding cost. A simple exponential smoothing model, using 99th percentile point of distribution of daily sales data for recent past 30 days, is proposed for determination of requisitioning quantity. The model was validated across outlets. It was further noted that the average inventory would have reduced by 31% without increase in average stock-out%, and the sales-to-inventory ratio would have increased by 75%. The cost-benefit analysis was done on new sale data to see the expected gain. This scientific inventory policy is, in general, applicable for any FMCG retail business environment.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Prasun Kumar Das
AU  - Susanta Kumar Gauri
PY  - 2020
DA  - 2020/08/13
TI  - (T, RN,α,p) Inventory Policy for a FMCG Retail Supply Chain
BT  - Proceedings of the 3rd Asia Pacific Management Research Conference (APMRC 2019)
PB  - Atlantis Press
SP  - 1
EP  - 5
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200812.001
DO  - 10.2991/aebmr.k.200812.001
ID  - Das2020
ER  -