A Method to Rationalize the Product Portfolio in Retail Stores

Retail store operations face a variety of challenges and complexities. Determining the best assortment is the main problem in the retail store. This re-search presents a practical methodology for the analysis of products in the assortment with the goal of reducing the excess items and improve sales...

Full description

Autores:
Coronado Hernández, Jairo Rafael
Ospina-Mateus, Holman
Baron-Villamizar, Javier
Vidal-Pachec, Lucelys
Piñeres-Castillo, Aurora
Rojas-Millán, Rafael H.
Silva, Jesús
Tipo de recurso:
Fecha de publicación:
2020
Institución:
Universidad Tecnológica de Bolívar
Repositorio:
Repositorio Institucional UTB
Idioma:
eng
OAI Identifier:
oai:repositorio.utb.edu.co:20.500.12585/9942
Acceso en línea:
https://hdl.handle.net/20.500.12585/9942
https://link.springer.com/chapter/10.1007%2F978-981-15-3125-5_51
Palabra clave:
Rationalization
Portfolio optimization
Clustering analysis
Retail
LEMB
Rights
closedAccess
License
http://purl.org/coar/access_right/c_14cb
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dc.title.spa.fl_str_mv A Method to Rationalize the Product Portfolio in Retail Stores
title A Method to Rationalize the Product Portfolio in Retail Stores
spellingShingle A Method to Rationalize the Product Portfolio in Retail Stores
Rationalization
Portfolio optimization
Clustering analysis
Retail
LEMB
title_short A Method to Rationalize the Product Portfolio in Retail Stores
title_full A Method to Rationalize the Product Portfolio in Retail Stores
title_fullStr A Method to Rationalize the Product Portfolio in Retail Stores
title_full_unstemmed A Method to Rationalize the Product Portfolio in Retail Stores
title_sort A Method to Rationalize the Product Portfolio in Retail Stores
dc.creator.fl_str_mv Coronado Hernández, Jairo Rafael
Ospina-Mateus, Holman
Baron-Villamizar, Javier
Vidal-Pachec, Lucelys
Piñeres-Castillo, Aurora
Rojas-Millán, Rafael H.
Silva, Jesús
dc.contributor.author.none.fl_str_mv Coronado Hernández, Jairo Rafael
Ospina-Mateus, Holman
Baron-Villamizar, Javier
Vidal-Pachec, Lucelys
Piñeres-Castillo, Aurora
Rojas-Millán, Rafael H.
Silva, Jesús
dc.subject.keywords.spa.fl_str_mv Rationalization
Portfolio optimization
Clustering analysis
Retail
topic Rationalization
Portfolio optimization
Clustering analysis
Retail
LEMB
dc.subject.armarc.none.fl_str_mv LEMB
description Retail store operations face a variety of challenges and complexities. Determining the best assortment is the main problem in the retail store. This re-search presents a practical methodology for the analysis of products in the assortment with the goal of reducing the excess items and improve sales and profit margin of a retail store without affecting customer satisfaction. The methodology integrates 6 steps that allow to optimize products of a portfolio in categories, sub categories and segments, through Pareto analysis and clustering analysis using the BCG matrix. The methodology was applied in an independent supermarket. The results in the case of the application for non-perishable products, allowed to identify a set of different products (n = 152), of which they were prioritized in a subcategory (oils) in which 90 products were prioritized. In the example, it shows how 21 products have significant results in the variety of products. The combination of the global and local category of the product, the net profit, the inventory rotation and the participation of the growth provides a multifactorial analysis in the decision-making to supply with products a retail store seeking to increase the level of service and maximizing profits.
publishDate 2020
dc.date.issued.none.fl_str_mv 2020-04-29
dc.date.accessioned.none.fl_str_mv 2021-02-08T15:16:36Z
dc.date.available.none.fl_str_mv 2021-02-08T15:16:36Z
dc.date.submitted.none.fl_str_mv 2021-02-03
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.driver.spa.fl_str_mv info:eu-repo/semantics/lecture
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status_str publishedVersion
dc.identifier.citation.spa.fl_str_mv Coronado-Hernandez J.R. et al. (2020) A Method to Rationalize the Product Portfolio in Retail Stores. In: Gunjan V., Senatore S., Kumar A., Gao XZ., Merugu S. (eds) Advances in Cybernetics, Cognition, and Machine Learning for Communication Technologies. Lecture Notes in Electrical Engineering, vol 643. Springer, Singapore. https://doi.org/10.1007/978-981-15-3125-5_51
dc.identifier.isbn.none.fl_str_mv 978-981-15-3124-8
dc.identifier.uri.none.fl_str_mv https://hdl.handle.net/20.500.12585/9942
dc.identifier.url.none.fl_str_mv https://link.springer.com/chapter/10.1007%2F978-981-15-3125-5_51
dc.identifier.doi.none.fl_str_mv 10.1007/978-981-15-3125-5_51
dc.identifier.instname.spa.fl_str_mv Universidad Tecnológica de Bolívar
dc.identifier.reponame.spa.fl_str_mv Repositorio Universidad Tecnológica de Bolívar
identifier_str_mv Coronado-Hernandez J.R. et al. (2020) A Method to Rationalize the Product Portfolio in Retail Stores. In: Gunjan V., Senatore S., Kumar A., Gao XZ., Merugu S. (eds) Advances in Cybernetics, Cognition, and Machine Learning for Communication Technologies. Lecture Notes in Electrical Engineering, vol 643. Springer, Singapore. https://doi.org/10.1007/978-981-15-3125-5_51
978-981-15-3124-8
10.1007/978-981-15-3125-5_51
Universidad Tecnológica de Bolívar
Repositorio Universidad Tecnológica de Bolívar
url https://hdl.handle.net/20.500.12585/9942
https://link.springer.com/chapter/10.1007%2F978-981-15-3125-5_51
dc.language.iso.spa.fl_str_mv eng
language eng
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eu_rights_str_mv closedAccess
rights_invalid_str_mv http://purl.org/coar/access_right/c_14cb
dc.format.mimetype.spa.fl_str_mv application/pdf
dc.publisher.place.spa.fl_str_mv Cartagena de Indias
dc.source.spa.fl_str_mv Advances in Cybernetics, Cognition, and Machine Learning for Communication Technologies
institution Universidad Tecnológica de Bolívar
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spelling Coronado Hernández, Jairo Rafaelfa159048-65d3-47d9-91ee-316761d87502Ospina-Mateus, Holman1b4b1bc0-3606-4c14-bb13-dbc9d4251891Baron-Villamizar, Javier7a8390ec-96dc-47de-84b5-25618fceb42fVidal-Pachec, Lucelysdf0bfcc5-9fc0-478d-aa51-a2a81041362dPiñeres-Castillo, Aurora6e0b99b5-c765-4039-9293-c82d0b5eec00Rojas-Millán, Rafael H.f424f246-eef0-45cd-98e3-7dbb1ae86cf7Silva, Jesús9b7a9fbb-fcdc-4def-9782-8d773343b2b92021-02-08T15:16:36Z2021-02-08T15:16:36Z2020-04-292021-02-03Coronado-Hernandez J.R. et al. (2020) A Method to Rationalize the Product Portfolio in Retail Stores. In: Gunjan V., Senatore S., Kumar A., Gao XZ., Merugu S. (eds) Advances in Cybernetics, Cognition, and Machine Learning for Communication Technologies. Lecture Notes in Electrical Engineering, vol 643. Springer, Singapore. https://doi.org/10.1007/978-981-15-3125-5_51978-981-15-3124-8https://hdl.handle.net/20.500.12585/9942https://link.springer.com/chapter/10.1007%2F978-981-15-3125-5_5110.1007/978-981-15-3125-5_51Universidad Tecnológica de BolívarRepositorio Universidad Tecnológica de BolívarRetail store operations face a variety of challenges and complexities. Determining the best assortment is the main problem in the retail store. This re-search presents a practical methodology for the analysis of products in the assortment with the goal of reducing the excess items and improve sales and profit margin of a retail store without affecting customer satisfaction. The methodology integrates 6 steps that allow to optimize products of a portfolio in categories, sub categories and segments, through Pareto analysis and clustering analysis using the BCG matrix. The methodology was applied in an independent supermarket. The results in the case of the application for non-perishable products, allowed to identify a set of different products (n = 152), of which they were prioritized in a subcategory (oils) in which 90 products were prioritized. In the example, it shows how 21 products have significant results in the variety of products. The combination of the global and local category of the product, the net profit, the inventory rotation and the participation of the growth provides a multifactorial analysis in the decision-making to supply with products a retail store seeking to increase the level of service and maximizing profits.application/pdfengAdvances in Cybernetics, Cognition, and Machine Learning for Communication TechnologiesA Method to Rationalize the Product Portfolio in Retail Storesinfo:eu-repo/semantics/lectureinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_8544http://purl.org/coar/version/c_970fb48d4fbd8a85RationalizationPortfolio optimizationClustering analysisRetailLEMBinfo:eu-repo/semantics/closedAccesshttp://purl.org/coar/access_right/c_14cbCartagena de IndiasPúblico generalCampo K, Gijsbrechts E, Nisol P (2004) Dynamics in consumer response to product unavailability: do stock-out reactions signal response to permanent assortment reductions? J Bus Res 57(8):834–843Sloot LM, Fok D, Verhoef PC (2006) The short-and long-term impact of an assortment reduction on category sales. J Mark Res 43(4):536–548Beneke J, Cumming A, Jolly L (2013) The effect of item reduction on assortment satisfaction—a consideration of the category of red wine in a controlled retail setting. J Retail Consum Serv 20(3):282–291EFMI and CBL (2005) ConsumentenTrends 2005. Rotterdam and Leidschendam: EFMI and CBLZinn W, Liu PC (2001) Consumer response to retail stockouts. J Bus Logist 22(1):49–71Valero-Herrero M, García-Sabater JP, Hernández JRC, Maheut J (2011) Planteamiento dinámico del problema de secuenciación en líneas de montaje con mezcla de modelos. In: V international conference on industrial engineering and industrial management, pp 288–296Coronado-Hernández JR (2016) Análisis del efecto de algunos factores de complejidad e incertidumbre en el rendimiento de las Cadenas de Suministro. Propuesta de una herramienta de valoración basada en simulación. Universitat Politècnica de València, Valencia (Spain). https://doi.org/10.4995/Thesis/10251/61467Garvis M (2010) SKU rationalization: determining the proper depth & breadth of an assortment. http://quantumretail.com/2010/08/17/the-profit-lab-new-seriesassortment-and-range-planning/Downs B, Metters R, Semple J (2001) Managing inventory with multiple products, lags in delivery, resource constraints, and lost sales: A mathematical programming approach. Manage Sci 47(3):464–479Irion J, Lu J-C, Al-Khayyal F, Tsao Y-C (2012) A piecewise linearization framework for retail shelf space management models. Eur J Oper Res 222(1):122–136Van Herpen E, Pieters R (2002) The variety of an assortment: an extension to the attribute-based approach. Mark Sci 21(3):331–341Gruen TW, Corsten DS, Bharadwaj S (2002) Retail out-of-stocks: a worldwide examination of extent, causes and consumer responses. Grocery Manufacturers of America, Washington, DCCachon GP, Terwiesch C, Xu Y (2005) Retail assortment planning in the presence of consumer search. Manuf Serv Oper Manag 7(4):330–346Kök AG, Fisher ML (2007) Demand estimation and assortment optimization under substitution: methodology and application. Oper Res 55(6):1001–1021Anderson SP, De Palma A, Thisse JF (1992) Discrete choice theory of product differentiation. MIT press, CambridgeChristopher M, Towill D (2001) An integrated model for the design of agile supply chains. Int J Phys Distrib Logist Manag 31(4):235–246Rius-Sorolla G, Maheut J, Coronado-Hernandez JR, Garcia-Sabater JP (2020) Lagrangian relaxation of the generic materials and operations planning model. Cent Eur J Oper Res 28(1):105–123Mattila H, King R, Ojala N (2002) Retail performance measures for seasonal fashion. J Fash Mark ManagAmelec V (2015) Validation of strategies to reduce exhausted shelf products in a pharmaceutical chain. Adv Sci Lett 21(5):1403–1405Amelec V (2015) Methodology to increase the adaptability and flexibility of the supply chain of automotive company through lean manufacturing. Adv Sci Lett 21(5):1517–1520http://purl.org/coar/resource_type/c_c94fLICENSElicense.txtlicense.txttext/plain; charset=utf-83182https://repositorio.utb.edu.co/bitstream/20.500.12585/9942/2/license.txte20ad307a1c5f3f25af9304a7a7c86b6MD52ORIGINAL110.pdf110.pdfAbstractapplication/pdf102966https://repositorio.utb.edu.co/bitstream/20.500.12585/9942/1/110.pdff5a635d8a50ce04ea53119199d48e738MD51TEXT110.pdf.txt110.pdf.txtExtracted texttext/plain1352https://repositorio.utb.edu.co/bitstream/20.500.12585/9942/3/110.pdf.txt12f5feccbdd53ac48821d6c0a31f9d69MD53THUMBNAIL110.pdf.jpg110.pdf.jpgGenerated Thumbnailimage/jpeg56676https://repositorio.utb.edu.co/bitstream/20.500.12585/9942/4/110.pdf.jpgb38c351077394b9ba871d8c1371a4df1MD5420.500.12585/9942oai:repositorio.utb.edu.co:20.500.12585/99422023-05-25 16:17:48.731Repositorio Institucional 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