Abstract
Fashion discounters face the problem of ordering the right amount of pieces in each size of a product. The product is ordered in pre-packs containing a certain size-mix of a product. For this so-called lot-type design problem, a stochastic mixed integer linear programm was developed, in which price cuts serve as recourse action for oversupply. Our goal is to answer the question, whether the resulting supply strategy leads to a supply that is significantly more consistent with the demand for sizes compared to the original manual planning. Since the total profit is influenced by too many factors unrelated to sizes (like the popularity of the product, the weather or a changing economic situation), we suggest a comparison method which excludes many outer effects by construction. We apply the method to a real-world field study: The improvements in the size distributions of the supply are significant.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
An approximation of \(Q(x,\xi )\) can be computed by solving a mixed integer linear programm or a dynamic program.
- 2.
We use the notation from [3].
References
Gaul, C., Kurz, S., Rambau, J.: On the lot-type design problem. Optim. Methods Softw. 25(2), 217–227 (2010)
H. Büning and G. Trenkler: Nichtparametrische statistische Methoden, Gruyter, (1994)
R. Purves, D. Freedman and R. Pisani: Statistics, WW Norton & Co, (1998)
S. Kurz and J. Rambau: Demand forecasting for companies with many branches, low sales numbers per product, and non-recurring orderings, Proceedings of the Seventh International Conference on Intelligent Systems Design and Applications, 22–24.10.2007, Rio de Janeiro, Brazil, 2007, pp. 196–201
S. Kurz and J. Rambau, J. Schlüchtermann, and R. Wolf.: The Top-Dog Index: A New Measurement for the Demand Consistency of the Size Distribution in Pre-Pack Orders for a Fashion Discounter with Many Small Branches, (submitted)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this paper
Cite this paper
Kießling, M., Kreisel, T., Kurz, S., Rambau, J. (2014). Evaluation of a New Supply Strategy for a Fashion Discounter. In: Helber, S., et al. Operations Research Proceedings 2012. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-00795-3_77
Download citation
DOI: https://doi.org/10.1007/978-3-319-00795-3_77
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-00794-6
Online ISBN: 978-3-319-00795-3
eBook Packages: Business and EconomicsBusiness and Management (R0)