An Optimal Order Quantity for Special Display Goods in Retailing : The effect of a mirror and false bottom

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  • KAWAKATSU Hidefumi
    Graduate School of Business Administration, Kobe University of Commerce
  • SANDOH Hiroaki
    Department of Information & Management Science, University of Marketing and Distribution Sciences
  • HAMADA Toshio
    Department of Management Science, Kobe University of Commerce

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Other Title
  • 小売業における特別展示商品に対する最適発注量 : 鏡及び上げ底の効果
  • 応用 小売業における特別展示商品に対する最適発注量--鏡及び上げ底の効果
  • オウヨウ コウリギョウ ニ オケル トクベツ テンジ ショウヒン ニ タイスル サイテキ ハッチュウリョウ カガミ オヨビ アゲゾコ ノ コウカ

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Abstract

This paper proposes an optimal order quantity model for special display goods at a retail store, where special display goods refer to merchandise which are heaped up in end displays or in special areas at a retail store. It is empirically known that the special display goods tend to sell well if their quantity displayed is large, but do not when it becomes small. In this study, we develop a model which take account of the effect of a mirror and false bottom, and discuss an optimal inventory level to order, along with order quantity and an optimal size of the false bottom. Numerical examples are also presented to illustrate the proposed model.

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