Acknowledges that the effect of displayed inventory on retail sales is widely recognized in the logistics, marketing and operations management literature and has been empirically verified. However, neither the marketing literature (shelf‐space allocation models) nor the operations management literature (inventory control models) has appropriately modeled this effect. The displayed‐inventory…
With all the hype around efficient consumer response (ECR) and the brave new world of technologies, one would believe that retail out‐of‐stocks have gone down over the last ten years. That is wrong. Retailers have been struggling with considerable out‐of‐stocks for decades – with little evidence of improvement. A similar wrong belief is that shoppers are also still unwilling to acce…
The purpose of this paper is to investigate the direct and interaction effects of shelf space, case pack quantity, and consumer demand on shelf stockouts, i.e. stockouts at the shelf level when inventory is available in the backroom of a retail store.