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Relationships between inventory, sales and service in a retail chain store operation

Dubelaar, Chris, Chow, Garland and Larson, Paul D. 2001, Relationships between inventory, sales and service in a retail chain store operation, International journal of physical distribution & logistics management, vol. 31, no. 2, pp. 96-108, doi: 10.1108/09600030110387480.

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Title Relationships between inventory, sales and service in a retail chain store operation
Author(s) Dubelaar, Chris
Chow, Garland
Larson, Paul D.
Journal name International journal of physical distribution & logistics management
Volume number 31
Issue number 2
Start page 96
End page 108
Total pages 14
Publisher Emerald Group Publishing
Place of publication Bingley, Eng.
Publication date 2001
ISSN 0960-0035
Keyword(s) Inventory
Service levels
Retailing
Sales
Summary Effective inventory management is critical to retailing success. Surprisingly, there islittle published empirical research examining relationships between retail inventory, sales andcustomer service. Based on a survey of 101 chain store units, this paper develops and tests aseries of hypotheses about retail inventory. Seventy-five percent of the store owners/managersresponded to the mail survey. As expected, significant positive relationships were found betweeninventory, service and sales. Specifically, support was found for the theory that inventory is afunction of the square root of sales. Also, greater product variety leads to higher inventory, andservice level is an exponential function of inventory. Finally, demand uncertainty was found tohave no apparent effect on inventory levels.
Language eng
DOI 10.1108/09600030110387480
Field of Research 150503 Marketing Management (incl Strategy and Customer Relations)
Socio Economic Objective 909999 Commercial Services and Tourism not elsewhere classified
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2001, Emerald Group Publishing
Free to Read? Yes
Persistent URL http://hdl.handle.net/10536/DRO/DU:30073323

Document type: Journal Article
Collections: Faculty of Business and Law
Open Access Collection
Department of Marketing
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Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.