Research output: Contribution in Book/Report/Proceedings - With ISBN/ISSN › Conference contribution/Paper › peer-review
Research output: Contribution in Book/Report/Proceedings - With ISBN/ISSN › Conference contribution/Paper › peer-review
}
TY - GEN
T1 - Centralizing slow-moving items in a retail network
T2 - 4th International Conference on Industrial Engineering and Operations Management (IEOM)
AU - Goh, Shao Hung
AU - Lim, Boon Lian
PY - 2014
Y1 - 2014
N2 - The subject of the study is a Singapore-based third-party logistics provider (3PL) that manages a network of retail stores on behalf of a public sector client. The network currently stocks a large number of slow-moving items (SMI) at store-level, which leads to significant working capital tied-down on inventory. This paper studies into and quantifies the effectiveness of a proposed approach to centralize the retail network’s inventory of slow-moving items to a pooling point. Results from the analysis show that under the base scenario with just 5% of items (by unit sales volume) stocked centrally, the aggregation of demand across retail outlets can contribute to a net 27.3% reduction in fulfillment costs. Furthermore, a selective centralization strategy can also be designed to be quite robust (i.e. costs would be close to optimum) within a broad range of SMI definitions.
AB - The subject of the study is a Singapore-based third-party logistics provider (3PL) that manages a network of retail stores on behalf of a public sector client. The network currently stocks a large number of slow-moving items (SMI) at store-level, which leads to significant working capital tied-down on inventory. This paper studies into and quantifies the effectiveness of a proposed approach to centralize the retail network’s inventory of slow-moving items to a pooling point. Results from the analysis show that under the base scenario with just 5% of items (by unit sales volume) stocked centrally, the aggregation of demand across retail outlets can contribute to a net 27.3% reduction in fulfillment costs. Furthermore, a selective centralization strategy can also be designed to be quite robust (i.e. costs would be close to optimum) within a broad range of SMI definitions.
KW - Slow-moving inventory
KW - centralization
KW - retail logistics
M3 - Conference contribution/Paper
SN - 9780985549718
SP - 899
EP - 908
BT - Proceedings of the 4th International Conference on Industrial Engineering and Operations Management (IEOM) - Bali, Indonesia January 7-9 2014
PB - IEOM
Y2 - 6 January 2014
ER -