The Problem Statement
A popular approach in fashion retailing to manage store level replenishment is to include a SKU (Stock Keeping Unit) into a NOOS (Never Out of Stock) supply program. The objective is to actively manage and guarantee shelf availability of that SKU. However, more often than not NOOS becomes a supply program for a range of SKUs without considering the “real” and “changing” speed of a SKU in a store. This “real” and “changing” speed differs from store to store as well as can change rapidly over the life span of a SKU.
Instead of using a fixed linkage between a product and a supply program, which will be only a reviewed and adopted infrequently, using a more dynamic method as reviewed below is better suited for fashion and softgoods products.
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