Abstract
We consider the problem of managing nonperishable inventory as a vendor in a grocer setting. To manage inventory effectively, we must meet the demand of our customers as closely as we can. Too much inventory results in holding costs and ties up a large amount of capital and too little inventory results in lost sales or substitution. It is typical in a retail setting for the vendor to have access to past ordering data, but this data is only representative of the demand when we have sufficient inventory. Otherwise, the demand exceeds the inventory on hand and we lose, in addition to the sale, the observation of the true demand. However, we get ahead of ourselves since the ability for the vendor to even know if there is an out-of-stock situation is questionable. This can be addressed through cooperation with the store and access to point of sale systems. The setting is further complicated by such things as the presence of multiple products, a backroom, and positive leadtimes. We conduct a survey on these topics as well as others pertaining to a vendortype situation such as periodic review, service level constraints, fixed order costs, and the joint replenishment problem.
Advisor
In-Jae Kim
Committee Member
Galkande (Iresha) Premarathna
Committee Member
Kyung Lee
Date of Degree
2018
Language
english
Document Type
Thesis
Degree
Master of Arts (MA)
Department
Mathematics and Statistics
College
Science, Engineering and Technology
Recommended Citation
LaPorte, J. (2018). The Vendor in a Retail Setting: A Survey [Master’s thesis, Minnesota State University, Mankato]. Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato. https://cornerstone.lib.mnsu.edu/etds/808/
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