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Conclusion

Since market uncertainties are difficult to manage, we recommend an adapter strategy to the problem. In the adapter strategy, the enterprise does not attempt to influence the uncertainty level in the market. It controls the risk exposure of its assets, such as inventory levels and profit margins, by constantly adapting its operations to unfolding demand realizations. Inventory Categorization based on Promotions is tool to follow adapter strategy, of which SKUs or product groups can be categorized as per their criticality for promotions and inventory levels.

Management Guru Peter Drucker rightly said that the "Future has already arrived". Wal-Mart is already using RFID technology to manage its supply chain and is happy with the results. The RFID system can help provide real-time inventory visibility of the sales floor and deliver proactive alerts for replenishments. Tomorrow, as the Indian Retail industry progresses, one has to look at RFID not only as supply chain driver but also as sales driver.

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* Contributed by: -
Sauraraj Nath & Vikrant P. Bawane,
Post Graduate Programme in Agribusiness Management (PGPABM) II,
National Institute of Agricultural Extension Management (MANAGE), Hyderabad.