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Direct Product Profit: A View From The Supermarket Industry

Author

Listed:
  • Stoops, Glenn T.
  • Pearson, Michael M.

Abstract

Direct Product Profit (DPP) is a decision making tool that helps the food merchandiser by providing a better indication of the profitability of products on the supermarket shelves. Direct Product Profit allocates Direct Product Costs (DPC) to individual products. These DPCs are subtracted from gross margin to derive DPP. This paper reports on the use of DPP in the syrup product section of a chain of supermarkets. Implications for managerial action are also discussed.

Suggested Citation

  • Stoops, Glenn T. & Pearson, Michael M., 1988. "Direct Product Profit: A View From The Supermarket Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 19(2), pages 1-5, September.
    • Handle: RePEc:ags:jlofdr:26949
    DOI: 10.22004/ag.econ.26949
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    File URL: https://ageconsearch.umn.edu/record/26949/files/19020010.pdf
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    References listed on IDEAS

    as
    1. McLaughlin, Edward W. & Hawkes, Gerard F., 1987. "A Forecast For The Grocery Industry In The 1990s," Journal of Food Distribution Research, Food Distribution Research Society, vol. 18(1), pages 1-10, February.
    2. Fletcher, Stanley M., 1987. "Scan Data Research: The Status," Journal of Food Distribution Research, Food Distribution Research Society, vol. 18(1), pages 1-5, February.
    3. Friedman, Mike, 1986. "Total System Efficiency," Journal of Food Distribution Research, Food Distribution Research Society, vol. 17(1), pages 1-2, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Oğuz Çetin & Adam J. Mersereau & Ali K. Parlaktürk, 2020. "Management and Effects of In-Store Promotional Displays," Manufacturing & Service Operations Management, INFORMS, vol. 22(3), pages 481-494, May.

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    More about this item

    Keywords

    Agribusiness;

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