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Setting the Order-Up-to Level in a Retailer: Challenges and Empirical Comparison of Simple Methods

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Advances in Engineering Networks (ICIEOM 2018)

Part of the book series: Lecture Notes in Management and Industrial Engineering ((LNMIE))

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Abstract

Order-up-to level is one of the most popular inventory management strategies in the retail industry. However, there exist several manners to fix the up-to-level. In this paper, we consider several of these manners and analyze their application to a real retail company. The company requires a method which is simple to understand and adopt and that should seek to minimize stockouts and in-store stock levels. We empirically compare, using real data, several methods to set the order-up-to value and report the performance of the system for each of them. Our results also demonstrate the relevance of two important factors, which are the size of the packaging and the seasonality of demand.

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Author information

Authors and Affiliations

  1. ROGLE, Departamento De Organización de Empresas, Universitat Politècnica de València, Camino de Vera, s/n, 46022, Valencia, Spain

    Vicent Asensio-Molina, Jose P. Garcia-Sabater & Julio J. Garcia-Sabater

  2. Faculté des sciences de l’administration, Université Laval, 2325 Rue de La Terrasse, Ville de Québec, QC, G1V 0A6, Canada

    Angel Ruiz

Authors
  1. Vicent Asensio-Molina
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  2. Angel Ruiz
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  3. Jose P. Garcia-Sabater
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  4. Julio J. Garcia-Sabater
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Corresponding author

Correspondence to Jose P. Garcia-Sabater .

Editor information

Editors and Affiliations

  1. Department of Business Administration, Management and Product Design, Universitat de Girona, Girona, Spain

    Rodolfo de Castro

  2. Department of Business Administration, Management and Product Design, Universitat de Girona, Girona, Spain

    Gerusa Giménez

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Asensio-Molina, V., Ruiz, A., Garcia-Sabater, J.P., Garcia-Sabater, J.J. (2020). Setting the Order-Up-to Level in a Retailer: Challenges and Empirical Comparison of Simple Methods. In: de Castro, R., Giménez, G. (eds) Advances in Engineering Networks. ICIEOM 2018. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-44530-0_26

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  • DOI: https://doi.org/10.1007/978-3-030-44530-0_26

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-44529-4

  • Online ISBN: 978-3-030-44530-0

  • eBook Packages: EngineeringEngineering (R0)

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