Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"Managing Fashion Goods Inventories:"

Nicholas Petruzzi and George E. Monahan

 

First Author :

Nicholas Petruzzi
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

213-333-9578

petruzzi@uiuc.edu

http://www.business.uiuc.edu/faculty/petruzzi.html


Second Author :

George E. Monahan
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

217-333-8270

gmonahan@uiuc.edu

http://www.business.uiuc.edu/faculty/monahan.html

 
 
Abstract :
 
The proliferation of both online and bricks and mortar outlet stores underscores the observation that secondary markets are readily accessible to retailers of short-life-cycle products. These secondary markets provide recourse channels for retailers to sell excess inventory of out of favor items at reduced prices when overstocking occurs in a primary market. We study the problem of determining when a retailer should terminate its primary selling season by selling remaining inventory on a secondary market. The retailer has a single opportunity to procure prior to a primary selling season consisting of multiple periods. Demand in each period is random,but correlated. At the end of each period, any remaining inventory incurs a holding cost. Then,based upon the current level of inventory and the cumulative demand-to-date,the retailer decides either to terminate the primary selling season by selling all or part of the remaining inventory on a secondary market,or to extend the current primary selling season by another period. We develop structural properties of the optimal policy for determining when to terminate the primary selling season,and we develop corresponding implications for procurement.
 
 
Manuscript Received : 2002
Manuscript Published : 2002
 
 
This abstract has been viewed 2405 times.
Click here to view the full text of this paper.