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The Nuisance of Slow Moving Products in Electronic Commerce

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  • Grzegorz, Chodak

Abstract

Article presents the important problem of products with low turnover in environment of electronic commerce. The key factors leading to the increasing number of slow moving stock keeping units (SKUs) in the context of online store are described. These issues are divided into two sets: general (not connected with online environment) and these which concern mainly online stores. The difficulty with identification of such SKUs is presented and proposition of inventory control shelf warmers indicator is shown. Afterwards the three-stage procedure for dealing with the occurrence of shelf warmers is described. The last part of the paper present the short conclusions.

Suggested Citation

  • Grzegorz, Chodak, 2016. "The Nuisance of Slow Moving Products in Electronic Commerce," MPRA Paper 69817, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:69817
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    File URL: https://mpra.ub.uni-muenchen.de/69817/2/MPRA_paper_69817.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/70141/2/MPRA_paper_69817.pdf
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    References listed on IDEAS

    as
    1. Chodak, Grzegorz & Suchacka, Gra┼╝yna, 2012. "Cost-oriented recommendation model for e-commerce," MPRA Paper 39542, University Library of Munich, Germany.
    2. Syntetos, A.A. & Babai, M.Z. & Davies, J. & Stephenson, D., 2010. "Forecasting and stock control: A study in a wholesaling context," International Journal of Production Economics, Elsevier, vol. 127(1), pages 103-111, September.
    3. Vishal Gaur & Marshall L. Fisher & Ananth Raman, 2005. "An Econometric Analysis of Inventory Turnover Performance in Retail Services," Management Science, INFORMS, vol. 51(2), pages 181-194, February.
    4. Rob J. Hyndman & Lydia Shenstone, 2005. "Stochastic models underlying Croston's method for intermittent demand forecasting," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 24(6), pages 389-402.
    5. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Inventory Control; Online Store; Shelf Warmer; Slow Moving Products;

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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