How consumer demand affects order quantity in practice: an empirical study on inventory management decisions in fashion retailing Online publication date: Mon, 14-Nov-2016
by Hau-Ling Chan; Tsan-Ming Choi; Yee-Man Ho
International Journal of Inventory Research (IJIR), Vol. 3, No. 2, 2016
Abstract: This study investigates the real inventory decisions in a fashion retailing company through a real sales data-based empirical study. Specifically, we collect a nine months sample sales dataset of 189 fashion product items from a Hong Kong-based fashion retailing company, and statistically verify relationships between the order quantity and several critical factors. Our findings reveal that: 1) the mean of demand, the standard variation of demand, and the profit margin of the fashion items are statistical significantly correlated with the ordering quantity decision of the case company; 2) there is no statistically significant difference on the order deviation from the mean of demand between the high and low profit margin products. We explain these findings by relating them to the analytical models under the newsvendor problem setting. Implications and important insights are discussed.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
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 Inventory Research (IJIR):
Login with your Inderscience username and 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
Our Blog 
Follow us on Twitter 
Visit us on Facebook