EDP Sciences Journals List
Home Document
Subscriber Authentication Point
Issue RAIRO Oper. Res.
Volume 36, Number 2, April-June 2002
Page(s) 157 - 172
DOI 10.1051/ro:2002009

RAIRO Oper. Res. 36 (2002) 157-172
DOI: 10.1051/ro:2002009

A Theoretical Model for Testing New Product Sales Velocity at Small Format Retail Stores

Hiroaki Sandoh1 and Roy Larke2

1  Department of Information & Management Science, University of Marketing & Distribution Sciences, Nishi, Kobe 651-2188, Japan; sandoh@umds.ac.jp.
2  Department of Marketing & Distribution Sciences, University of Marketing & Distribution Sciences, Nishi, Kobe 651-2188, Japan; roy12@attglobal.net.

(Received February, 2002.)

Abstract
The present study proposes a theoretical model to test sales velocity for new products introduced in small format retail stores. The model is designed to distinguish fast moving products within a relatively short period. Under the proposed model, the sales of a newly introduced product are monitored for a prespecified period T, e.g., one week, and if the number of items sold over T is equal to a prespecified integer k or more, the product is considered a fast moving product and is carried over to the following sales periods. A slow moving product could be quickly replaced with alternative merchandise in order to make best use of shelf space. The paper first presents definitions of fast and slow moving products, and then a proposed sales test policy based on the model is formulated, where the expected loss is to be minimized with respect to the integer k. Numerical examples based on actual data collected from a convenience store in Japan are also presented to illustrate the theoretical underpinnings of the proposed sales test model.


Key words: Sales test, fast moving product, slow moving product, expected loss.


© EDP Sciences 2002


What is OpenURL?

The OpenURL standard is a protocol for transmission of metadata describing the resource that you wish to access. An OpenURL link contains article metadata and directs it to the OpenURL server of your choice. The OpenURL server can provide access to the resource and also offer complementary services (specific search engine, export of references...). The OpenURL link can be generated by different means.
  • If your librarian has set up your subscription with an OpenURL resolver, OpenURL links appear automatically on the abstract pages.
  • You can define your own OpenURL resolver with your EDPS Account. In this case your choice will be given priority over that of your library.
  • You can use an add-on for your browser (Firefox or I.E.) to display OpenURL links on a page (see http://www.openly.com/openurlref/). You should disable this module if you wish to use the OpenURL server that you or your library have defined.