Marketing

Quantifying the Benefits of respite Bulk in Retail Michael Ketzenberg George Mason University Washington, D.C., USA Richard Metters* Through June 30, 2001 As of July 1, 2001 Cox School of Business Goizueta Business School Southern Methodist University Emory University Dallas, Texas 75275-0333, USA Atlanta, Georgia, 30322-2710 (214)-365-0230 Fax 768-4099 E-mail: RMetters@mail.cox.smu.edu Vicente Vargas Goizueta Business School Emory University Atlanta, Georgia, USA *Corresponding Author Quantifying the Benefits of Breaking Bulk in Retail ABSTRACT We explore the benefits of breaking bulk in retail operations. Here, breaking bulk refers to delivering single unit of measurements from distribution centers to retail outlets rather than the multiple units bundled together by manufacturers termed casepacks. The center on is largely on the benefits to space management at the retail level, rather than the more obvious reduction in ancestry costs. Using data from the grocery industry, results indicate that retail unit profitability can be increased substantially by breaking bulk - but only if current archive replenishment practices are changed. In essence, breaking bulk allows for any higher product variety within a origin or identical variety in smaller stores.

This live on seeks to quantify the order of magnitude of that benefit. (Keywords: inventory, retail, JIT) 1 1. INTRODUCTION Some of the earliest donnish work in service operations exhorted service firms to tactual sensation to the methods employed by manufacturers to increase productivity (Levitt 1972, 1976). Inventory-oriented retail firms establish heeded this advice by embracing JIT-like practices perfected by the manufacturing sector though somewhat later than Leavitt intended. Prominent examples include the industry-wide Efficient Consumer solvent (ECR) movement in the grocery industry and Quick solution in the apparel industry (Hammond and Kelly 1990). These movements have become central organizing principles... If you want to get a full essay, order it on our website: Orderessay

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