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An examination of the causes for retail stockouts

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abstract To increase our understanding of the causes for stockouts in retailing.

Mixed methods study, using instore observations, interviews with key informants in consumer goods and retailing, and a field study of stockouts and their causes in multiple wholesale stores over two years.

Our results indicate that the causes for stockouts are specific to retailer, store, category and item. Improvements to store operations and the coordination of store delivery and shelf replenishment are most effective in reducing stockouts. Manual audits of stockouts and their causes benefit instore execution and provide the level of detail necessary for management to prioritize areas of improvement.

Future research may investigate the operational and cost impact of incorporating demand seasonality in shelf replenishment that may lead to an improved coordination of replenishment and demand cylces.

A procedure is proposed to help store managers reduce stockouts well below the global average of 8.3%.

Extends the literature by providing a comprehensive set of itemized causes of retail stockouts and reflects implications for sales-data driven research.
   
type journal paper
   
keywords Stockouts, Instore logistics, Retail Operations
   
project Kompetenzzentrum Advanced Optimal Shelf Availability (AdOSA)
language English
kind of paper journal article
date of appearance 1-1-2013
journal International Journal of Physical Distribution and Logistics Management
publisher Emerald Group Publishing Limited (Bingley UK)
ISSN 0960-0035
DOI 10.1108/09600031311293255
volume of journal 43
number of issue 1
page(s) 54-69
review double-blind review
   
profile area SoM - Business Innovation
citation Ehrenthal, J. C., & Stölzle, W. (2013). An examination of the causes for retail stockouts. International Journal of Physical Distribution and Logistics Management, 43(1), 54-69, DOI:10.1108/09600031311293255.