Impact of pack quantity decision on retail replenishment handling cost | |
| Author | Agrawal, Rachana |
| Call Number | AIT RSPR no.SM-12-08 |
| Subject(s) | Inventory control Retail trade--Thailand |
| Note | A research study Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-12-08 |
| Abstract | General practice of the retail industry for aiming to reduce handling cost is that they use the case pack for easy handling while distributing the products from supplier to retailer in the distribution chain. A distribution case pack contains an assortment of varying quantities of different stock keeping units (SKUs) packed together in a single box or pallet. This study aims for case packs procurement planning problem to benefit leading retailers worldwide by helping them to achieve greater customer reach and responsiveness as well as improved operational efficiency. The purpose of this study research is to analyze the impact of the pack-quantity decision on stores and distribution handling cost which will help in minimizing the chances of second trip by ordering the optimal pack-quantity, given a shelf space allocation. Ideally retailers want to have only single trip during replenishment process in the store, which means store worker will fill the entire received product quantity in one-go to the shelf and products will not go to back store. Store decides on the quantity ordered per order which should be smaller than shelf space. Stores order products in the form of multiple packs. There is also a distribution handling cost to handle each case-pack. This research can help managers of the retail store and suppliers to deliver order and distribute products in supply chain which will help them in reducing their operational cost and maximize their profits. The study is considered as qualitative single-case study. Data is collected from several interviews with a manager working with a major modern trade retailer in Thailand. Secondary data is retrieved from the information system, research and reports, publication sources, internet sources as well as our interviewee provided us some data to analyses the impact of pack size which his organization collected during pack reduction project for their internal use. Our study will show that store managers can reduce the operational cost by optimizing the pack quantity which fits to the shelf space and will reduce the chances of the secondary trip in the retail store. Keywords: Retail Replenishment, Pack Size/ Case Size/ Case Quantity, Inventory Control, Shelf Space Allocation, Store Handing Cost, Distribution Handling Cost |
| Year | 2012 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-12-08 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Vatcharapol Sukhotu; |
| Examination Committee(s) | Winai Wongsurawat;Supasith Chonglerttham; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2012 |