Article: Enhancing competitiveness by innovative inventory pooling system for multi-retailers Journal: International Journal of Business Innovation and Research (IJBIR) 2021 Vol.25 No.4 pp.453 - 474 Abstract: The main objective of this research was to optimise responses to random demands from multiple locations during appropriate periods and it also attempted to ensure opportunity cost of lost sales was minimised. The simulation model represented the inventory levels of sports retailers. Employing Monte Carlo simulation (MCS) integrated Microsoft® Excel, the paper establishes two simulation models of the whole process from product demand to supply in traditional mode (no pooling stores) and pooling mode (IIPS), respectively. The simulation system aimed to maximise system service fee after users joined the pooling system and limit the percentage of opportunity cost of lost sales to not more than the percentage of opportunity cost of lost sales for individual stores. By quantitative comparison and analysis, it is proved that inventory pooling could be effective method to improve performance of sport retailers in Thailand, especially in decreasing the percentage of opportunity cost of lost sales. Inderscience Publishers - linking academia, business and industry through research

Title: Enhancing competitiveness by innovative inventory pooling system for multi-retailers

Authors: Lilawadi Phatanarajata; Sukree Sinthupinyo; Achara Chandrachai; Thira Chavarnakul

Addresses: Chulalongkorn University, Phyathai Road, Pathumwan, Bangkok 10330, Thailand ' Faculty of Engineering, Chulalongkorn University, Phyathai Road, Pathumwan, Bangkok 10330, Thailand ' Faculty of Commerce and Accountancy, Chulalongkorn University, Phyathai Road, Pathumwan, Bangkok 10330, Thailand ' Faculty of Commerce and Accountancy, Chulalongkorn University, Phyathai Road, Pathumwan, Bangkok 10330, Thailand

Abstract: The main objective of this research was to optimise responses to random demands from multiple locations during appropriate periods and it also attempted to ensure opportunity cost of lost sales was minimised. The simulation model represented the inventory levels of sports retailers. Employing Monte Carlo simulation (MCS) integrated Microsoft® Excel, the paper establishes two simulation models of the whole process from product demand to supply in traditional mode (no pooling stores) and pooling mode (IIPS), respectively. The simulation system aimed to maximise system service fee after users joined the pooling system and limit the percentage of opportunity cost of lost sales to not more than the percentage of opportunity cost of lost sales for individual stores. By quantitative comparison and analysis, it is proved that inventory pooling could be effective method to improve performance of sport retailers in Thailand, especially in decreasing the percentage of opportunity cost of lost sales.

Keywords: inventory pooling; transhipment; lateral transhipment; Monte Carlo simulation; MCS; opportunity cost; service level; multi-retailers.

DOI: 10.1504/IJBIR.2021.117092

International Journal of Business Innovation and Research, 2021 Vol.25 No.4, pp.453 - 474

Received: 22 May 2018
Accepted: 06 Jun 2019
Published online: 17 Aug 2021 *

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Title: Enhancing competitiveness by innovative inventory pooling system for multi-retailers

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