Retail Stockage Policy under Budget Constraints.
Abstract
Retail level units are subject to budgetary constraints when they order support items. At the same time, the stockage policies under which they operate do not attempt to relate stockage quantities to funds available. This study found that cutting reorder points was substantially more cost/effective than cutting operating levels in that there is a smaller impact on fill rates for each dollar cut. Modifying stockage list retention criteria worked very well for one DSU unit, and very poorly for another, and therefore could not be recommended generally despite its potential. In doing the study a Budget/Performance Evaluator (B/PE) was programmed. This is a computer program which can project budgetary requirements and fill rates for any retail unit, using input data about each item managed and the stockage policies to be followed. The input data is the same data needed for day to day management of the items. The B/PE differs from comparable programs already available in that it was designed to be accurate over the short term (e.g. 3 to 6 months). (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1977
- Accession Number
- ADA041308
Entities
People
- Alan J. Kaplan