Packaged gas supply chain planning with network-wide SKU rationalization

Malinowski, Ethan; Karwan, Mark H.; Sun, Lei; Pinto, José M.

doi:10.1016/j.ijpe.2018.08.013

Cited by 6 publications

(5 citation statements)

References 11 publications

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“…Taken together, these product variety factors imply trade-offs associated with optimal product assortments: Retailers attempt to stock enough product to generate sales and keep customers interested while avoiding carrying too many products within a product category to keep store operations running as smoothly as possible. This is known as SKU rationalization and has been investigated in both the marketing and operations management literature (Malinowski et al, 2018). This literature has largely focused on determining the optimal product assortment to offer by examining potential overlap between product offerings in much the same way as is done in the risk pooling literature (Alfaro & Corbett, 2003).…”

Section: Product Variety Operational Performance and Salesmentioning

confidence: 99%

Trade‐offs between operational performance and sales in a retail environment: The simultaneous impact of product variety on inventory levels, product availability, and sales

Sweeney

Evers

Duan

et al. 2023

J of Business Logistics

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Larger product assortments have been found to have both positive and negative impacts on firms that offer them. More product variety allows firms to increase sales by either selling to a larger customer base or by encouraging current customers to purchase more frequently and in greater quantities. However, more product variety is also associated with lower operational performance. In this research, we investigate the impact of product variety on firm performance in a retail setting. Using data gathered from a large retailer over a 32-week period for 12 product categories, we develop a multiple stage regression model and find that the effects of product variety on inventory levels, stockout rates and sales differ across more hedonic and more utilitarian product categories. Furthermore, we find that the product variety decision itself is moderated by the hedonic or utilitarian nature of the product category.Implications of the findings for theory and retail management are discussed.

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Section: Product Variety Operational Performance and Salesmentioning

confidence: 99%

Trade‐offs between operational performance and sales in a retail environment: The simultaneous impact of product variety on inventory levels, product availability, and sales

Sweeney

Evers

Duan

et al. 2023

J of Business Logistics

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show abstract

“…Ding and Sun (2007) applied Data Envelopment Analysis (DEA) models to analyse product complexity related to product variety and tested these tools in a US automobile plant. Malinowski et al (2018) applied SKU rationalization in the form of a variant of product substitution to an industrial packaged supply chain problem.…”

Section: Identified Pvr Barriersmentioning

confidence: 99%

A classification of barriers to product variety reduction

Battistello

Haug

Trattner

et al. 2021

CIRP Journal of Manufacturing Science and Technology

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“…The marketing area shows the idea that a high product variety allows a company to satisfy heterogeneous customers and increase the probability of sale (Yu, 2012), which is also valid for the service industry, which has points of customer contact, thus product/service variety management is crucial for daily business (Nishino et al , 2014). On the other hand, the operations area is concerned with operating costs, product quality, manufacturing flexibility (Boer and Boer, 2019), SKU rationalization (Malinowski et al , 2018), inventory management and on-time delivery (Patel and Jayaram, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Yet, demand forecasting becomes more difficult given the greater presence of innovative products compared to functional products (Fisher, 1997), added to the possibility of generating diseconomies of scale and higher costs in operations (Yu, 2012). Some authors raise the point that SKU rationalization might be an advantageous strategy for high variety businesses as it drives lower production, transportation costs and inventory simplifications (Malinowski et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

The impact of product variety on fill rate, inventory and sales performance in the consumer goods industry

Santos

Sampaio

Alliprandini

2020

JMTM

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PurposeThe impact of product variety decisions on fill rate, inventory and sales performance in a consumer goods company has been examined. From a marketing perspective, it is possible to leverage sales, reach new segments and consequently increase competitiveness when there is a greater product variety on the market. However, operations and logistics professionals indicate potential impacts on the supply chain, such as production, storage and distribution complexity. The nature of the product variety-cost-sales performance relationship is not clear, and empirical evidence about whether and how operations cost and sales performance increases with variety is inconclusive.Design/methodology/approachThe multiple linear regression and the Tobit regression techniques were applied over a seven-year horizon of data from a business intelligence platform of a consumer goods company.FindingsOur results show that sales performance is negatively associated with product variety. The total effect of product variety on sales performance has been examined, including both the direct effect and the indirect effect through inventory and fill rate. Therefore, the findings provide a comprehensive understanding of the impact of product variety on operations and sales performance.Originality/valueSeveral studies have researched the impact of product variety on fill rate, inventory and sales performance separately; however, the research of the impact and the relationship of these factors is scarce and limited.

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Packaged gas supply chain planning with network-wide SKU rationalization

Cited by 6 publications

References 11 publications

Trade‐offs between operational performance and sales in a retail environment: The simultaneous impact of product variety on inventory levels, product availability, and sales

Trade‐offs between operational performance and sales in a retail environment: The simultaneous impact of product variety on inventory levels, product availability, and sales

A classification of barriers to product variety reduction

The impact of product variety on fill rate, inventory and sales performance in the consumer goods industry

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