Retail Supply Chain Management: Quantitative Models and Empirical Studies (International Series in Operations Research & Management Science Book 122)

Retailing comprises about 40% of the U.S. economy, and is a major economic engine of the world economy. While the retail sector has always been very competitive, in recent years, the competitive nature of the field has increased dramatically. Customers too have become more exacting, demanding ever-increasing levels of service. Retailers have responded by increasing the variety of their products, becoming more price competitive, striving towards higher service levels, and utilizing advances in computing capabilities and information technologies to improve their supply chain efficiency. However, these developments have also greatly increased the complexity of managing the retail business environment. Consequently, most retailers have struggled to maintain profitability. Rigorous analytical methods have emerged as the most promising solution to many of these complex problems. Indeed, the retail industry has emerged as a fascinating choice for researchers in the field of supply chain management. In **Retail Supply Chain Management**, leading researchers provide a detailed review of cutting-edge methodologies that address the complex array of these problems. A critical resource for researchers and practitioners in the field of retailing, chapters in this book focus on three key areas: (1) empirical studies of retail supply chain practices, (2) assortment and inventory planning, and (3) integrating price optimization into retail supply chain decisions. Retail Supply Chain Management 1 Foreword 5 Preface 7 Contents 9 Contributors 11 Overview of Chapters 13 1.1 Background 13 1.2 The Focus Of Academic Research In This Volume 14 REFERENCES 20 Supply Chain Planning Processes for Two Major Retailers 22 2.1 Introduction 22 2.2 Supply Chain Description 24 2.3 Supply Chain Planning Processes 26 2.3.1 Product design and assortment planning 28 2.3.2 Sourcing & vendor selection 29 2.3.3 Logistics planning 30 2.3.4 Distribution planning and inventory management 31 2.3.5 Clearance and markdown optimization 32 2.3.6 Cross-channel optimization 33 2.4 Conclusion 33 REFERENCES 34 The effects of firm size and sales growth rate on inventory turnover performance in the U.S. retail sector 35 3.1 Introduction 35 3.2 Literature Review 38 3.3 Data Description 40 3.4 Adjusted Inventory Turnover 46 3.5 Hypotheses 47 3.5.1 Effect of firm size on inventory turnover 48 3.5.2 Effect of sales ratio on inventory turnover 50 3.6 Model 52 3.7 Results 53 3.8 Conclusions and Directions for Future Research 58 REFERENCES 61 The Role of Execution in Managing Product Availability 63 REFERENCES 85 Category captainship practices in the retail industry 88 5.1 Introduction 88 5.1.4 Category captainship implementations in practice 89 5.2 Review of Existing Research on Category Captainship 91 5.2.1 Emergence of category captainship 93 5.2.2 Delegation of the pricing decisions 95 5.2.3 Delegation of the assortment selection decision 99 5.2.4 Antitrust concerns 102 5.3 Impact of Category Captainship Practices on the Retail Industry 103 5.4 Future Research Directions 104 REFERENCES 106 Assortment planning: Review of literature and Industry Practice 108 REFERENCES 158 Managing variety on the retail shelf: Using household scanner panel data to rationalize assortments 163 REFERENCES 188 Optimizing Retail Assortments for Diverse Customer Preferences 191 References 212 Multi-Location Inventory Models for Retail Supply Chain Management 214 REFERENCES 238 Manufacturer-to-retailer versus manufacturer-to-consumer rebates in a supply chain 243 REFERENCES 275 Clearance pricing in retail chains 277 REFERENCES 296 Markdown Competition 298 12.1 Introduction 298 12.2 The Model 300 12.3 The Case of a Monopolistic Retailer 301 12.4 Markdown Competition 303 12.5 Managerial Implications and Conclusion 308 12.1 APPENDIX: A SKETCHY DERIVATION OF 7 310 REFERENCES 312 Index 313 1. Overview of Chapters -- Narendra Agrawal and Stephen A. Smith -- 2. Supply Chain Planning Processes for Two Major Retailers -- Narendra Agrawal and Stephen A. Smith -- 3. The effects of firm size and sales growth rate on inventory turnover performance in the U.S. retail sector -- Vishal Gaur and Saravanan Kesavan -- 4. The Role of Execution in Managing Product Availability -- Nicole DeHoratius and Zeynep Ton -- 5. Category captainship practices in the retail industry -- Mumin Kurtulus and L. Beril Toktay -- 6. Assortment planning: Review of literature and Industry Practice -- A. Gurhan Kok, Marshall L. Fisher and Ramnath Vaidyanathan -- 7. Managing variety on the retail shelf: Using household scanner panel data to rationalize assortments -- Ravi Anupindi, Sachin Gupta and M. A. Venkataramanan -- 8. Optimizing Retail Assortments for Diverse Customer Preferences -- Stephen A. Smith -- 9. Multi-Location Inventory Models for Retail Supply Chain Management -- Narendra Agrawal and Stephen A. Smith -- 10. Manufacturer-to-retailer versus manufacturer-to-consumer rebates in a supply chain -- Goker Aydin and Evan L. Porteus -- 11. Clearance pricing in retail chains -- Stephen A. Smith -- 12. Markdown Competition -- Seungjin Whang. Front Matter....Pages i-xii Overview of Chapters....Pages 1-9 Supply Chain Planning Processes for Two Major Retailers....Pages 11-23 The effects of firm size and sales growth rate on inventory turnover performance in the U.Sretail sector....Pages 25-52 The Role of Execution in Managing Product Availability....Pages 53-77 Category Captainship Practices in the Retail Industry....Pages 79-98 Assortment Planning: Review of Literature and Industry Practice....Pages 99-153 Managing Variety on the Retail Shelf: Using Household Scanner Panel Data to Rationalize Assortments....Pages 155-182 Optimizing Retail Assortments for Diverse Customer Preferences....Pages 183-205 Multi-Location Inventory Models for Retail Supply Chain Management....Pages 207-235 Manufacturer-To-Retailer versus Manufacturer-To-Consumer Rebates in a Supply Chain....Pages 237-270 Clearance pricing in retail chains....Pages 271-291 Markdown Competition....Pages 293-307 Back Matter....Pages 309-327 In today's retail environment, characterized by product proliferation, price competition, expectations of service quality, and advances in technology, many organizations are struggling to maintain profitability. Rigorous analytical methods have emerged as the most promising solution to many of these complex problems. Indeed, the retail industry has emerged as a fascinating choice for researchers in the field of supply chain management. In Retail Supply Chain Management, leading researchers provide a detailed review of cutting-edge methodologies that address the complex array of these problems. A critical resource for researchers and practitioners in the field of retailing, chapters in this book focus on three key areas: (1) empirical studies of retail supply chain practices, (2) assortment and inventory planning, and (3) integrating price optimization into retail supply chain decisions. A Critical Resource For Researchers And Practitioners In The Field Of Retailing, Chapters In This Book Focus On Three Key Areas: (1) Empirical Studies Of Retail Supply Chain Practices, (2) Assortment And Inventory Planning, And (3) Integrating Price Optimization Into Retail Supply Chain Decisions.--jacket. The Role Of Executionin Managing Product Availability / Zeynep Ton. Narendra Agrawal, Stephen A. Smith, Editors ; Foreword By Hau L. Lee. Includes Bibliographical References And Index. "A critical resource for researchers and practitioners in the field of retailing, chapters in this book focus on three key areas: (1) empirical studies of retail supply chain practices, (2) assortment and inventory planning, and (3) integrating price optimization into retail supply chain decisions."--BOOK JACKET. The complex demands of modern retail are cutting into the profitability of many businesses. In this seminal book, leading researchers provide a detailed review of cutting edge methodologies that address and remedy the supply-chain woes in the retail world.