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Operations | "Planning for Demand Uncertainties During Promotional Cycles of Modern Retail"

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Planning for Demand Uncertainties
During Promotional Cycles of Modern Retail

- by Sauraraj Nath & Vikrant P. Bawane *

Previous

Page - 6

In order to build up adapter strategy, we recommend Inventory Categorization based on Promotions. Since market uncertainties are difficult to manage, adopting this method leads to gain control over the scale of the problem. SKUs or product groups can be categorized as per their criticality for promotions and inventory levels.

Inventory Categorisation (Promotions Based)

It involves categorization of SKUs based on their criticality for Promotions and Stocking ability. Following is an example depicting how a SKU can be categorised: -

Table 1: Inventory Categorisation

Example: SKU CODE: 1112

Next


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


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