Experimental examination on the effectiveness of loss prevention technology: a case study
by Ximena Patrick, Jami Kovach, Liang-Chieh (Victor) Cheng
International Journal of Experimental Design and Process Optimisation (IJEDPO), Vol. 1, No. 2/3, 2009

Abstract: The negative impact of inventory shrinkage on bottom line performance in the retail industry reaches billions of dollars each year. Previous recommendations suggest that inventory shrinkage is a function of the merchandise tagging strategy. The current technology available for securing merchandise includes both electronic article surveillance (EAS) and radio frequency identification (RFID) systems. However, few studies have empirically examined the impact of tagging strategies on inventory management. The present study attempts to fill this gap in the literature by experimentally investigating the relationship between merchandise tagging and inventory control. Our work includes a field experiment to test the effect of EAS systems on inventory shrinkage in a retail setting. Our findings indicate that merchandise tagging systems exhibit strong capabilities in terms of reducing inventory shrinkage and enhancing retail profitability. These conclusions provide evidence in favour of the logistical and financial benefits of this technology with respect to shrinkage reduction.

Online publication date: Mon, 14-Dec-2009

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Experimental Design and Process Optimisation (IJEDPO):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com