A Seasonal Shelf Space Reorder Model Decision Support System
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Kent State University / OhioLINK
2010
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| Online Access: | http://rave.ohiolink.edu/etdc/view?acc_num=kent1291086889 |
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ndltd-OhioLink-oai-etd.ohiolink.edu-kent12910868892021-08-03T05:19:44Z A Seasonal Shelf Space Reorder Model Decision Support System Horne, Susan Elaine Business Administration Information Systems Management Marketing shelf space newsvendor seasonality style goods fashion space elasticity cross product elasticity decision support system DSS simulation innovative products expert validation verification <p>The traditional newsvendor model results in a decision to reorder an item whenever the expected profit from the reorder is positive. Candidates for reorder include all items selling more quickly than had been anticipated during preseason forecasts and ordering. Retailers must also decide how to allocate shelf space in order to optimize store profit; any item reordered must be the most profitable option among all items competing for the same shelf space. Overall store profit calculations must incorporate the impact on sales of related items, the cost of stock outs, and characteristics of the reordered item. Seasonal products’ abbreviated sales windows and style products’ short life cycles add urgency and complexity to the reorder decision. Lack of product availability may limit how much of the most profitable item can be ordered; in these cases, the next most profitable item is the most likely candidate for the remaining available shelf space.</p><p>In this paper we extend the work of Corstjens and Doyle (1981) and Gallego and Moon (1993) and develop a model encompassing each of these elements: the newsvendor reorder decision, seasonal goods, style goods, multiple discounts, shortage costs, expediting, and shelf space allocation incorporating cross product elasticity. The shelf space allocation is an extension of the knapsack problem requiring not only that the profit calculations include effects on sales of related items, but that the requisite space to hold these related items is available.</p><p>The model is implemented and validated as a decision support system (DSS). Corstjens and Doyle’s (1981), Gallego and Moon’s (1993), and the classic newsvendor models are also implemented in the DSS for comparison purposes. Scenario analysis, testing the model’s sensitivity of the decision to managers’ assumptions, is incorporated as are tools to derive the range of values for which the decision is valid.</p> 2010 English text Kent State University / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=kent1291086889 http://rave.ohiolink.edu/etdc/view?acc_num=kent1291086889 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws. |
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NDLTD |
| language |
English |
| sources |
NDLTD |
| topic |
Business Administration Information Systems Management Marketing shelf space newsvendor seasonality style goods fashion space elasticity cross product elasticity decision support system DSS simulation innovative products expert validation verification |
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Business Administration Information Systems Management Marketing shelf space newsvendor seasonality style goods fashion space elasticity cross product elasticity decision support system DSS simulation innovative products expert validation verification Horne, Susan Elaine A Seasonal Shelf Space Reorder Model Decision Support System |
| author |
Horne, Susan Elaine |
| author_facet |
Horne, Susan Elaine |
| author_sort |
Horne, Susan Elaine |
| title |
A Seasonal Shelf Space Reorder Model Decision Support System |
| title_short |
A Seasonal Shelf Space Reorder Model Decision Support System |
| title_full |
A Seasonal Shelf Space Reorder Model Decision Support System |
| title_fullStr |
A Seasonal Shelf Space Reorder Model Decision Support System |
| title_full_unstemmed |
A Seasonal Shelf Space Reorder Model Decision Support System |
| title_sort |
seasonal shelf space reorder model decision support system |
| publisher |
Kent State University / OhioLINK |
| publishDate |
2010 |
| url |
http://rave.ohiolink.edu/etdc/view?acc_num=kent1291086889 |
| work_keys_str_mv |
AT hornesusanelaine aseasonalshelfspacereordermodeldecisionsupportsystem AT hornesusanelaine seasonalshelfspacereordermodeldecisionsupportsystem |
| _version_ |
1719418627351904256 |