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Performance effects of category assortment and stock allocation decisions for a cash-and-carry wholesaler

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Abstract:

This study develops and tests a model of how category assortment, category stock level and within-category stock allocation decisions might affect category sales and stock turnover and reflect category-varying levels of sales heterogeneity and sales volatility. In doing so, it addresses recent calls to consider multiple dimensions of assortment planning. It uses the cash-and-carry wholesaling setting to isolate non-space-related assortment planning and performance variables otherwise difficult to treat in a conventional retailing (e.g. supermarket) context. It develops a structural equation model of how category sales volatility and heterogeneity, as antecedents, might influence both category assortments and stock allocations and thus, in turn, influence category performance.

Keywords: assortment; category management; sales volatility; stock planning; wholesaling

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/09593969.2013.835741

Affiliations: School of Marketing, University of New South Wales, Sydney, 2052, Australia

Publication date: December 1, 2013

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