Skip to main content

Collaborative Model to Reduce Stock Breaks in the Peruvian Retail Sector by Applying the S&OP Methodology

  • Conference paper
  • First Online:
Human Interaction, Emerging Technologies and Future Applications III (IHIET 2020)

Abstract

The retail sector is a growing industry, however with serious problems associated with inventories such as stock breakage. This article proposes a collaborative model applying the S&OP methodology to reduce stock breakages in a Peruvian company in the retail sector through a purchasing plan designed by the interaction and participation of different actors in charge of the process. The results of the model are measured by the percentage of stock breaks, the demand forecast error and the increase in sales. In the diagnosis of the problem two factors were identified that cause the stock breaks. The first is caused by the delay that exists in the replenishment of inventories, due to the bad programming of delivery of products between the distribution center and the stores. The second is related to the insufficient amount of purchases caused by not properly categorizing the products, poor forecast and not having safety inventory policies. A simulation resulted in a 17% stock breakage reduction, a 17% forecast error decrease, and a 15% sales increase.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Velapatiño, V., Crispin, Y., Grippa, F.: Perú: Situación Retail Moderno 2018. Lima, Peru (2018)

    Google Scholar 

  2. Perú-Retail: Perú: Comercio minorista crece 2.81% por mejor desempeño de supermercados en el (2018). https://www.peru-retail.com/peru-comercio-minorista-2018/. Last Accessed 10 Aug 2019

  3. Chen, Z., Sarker, B.R.: Integrated production-inventory and pricing decisions for a single-manufacturer multi-retailer system of deteriorating items under JIT delivery policy. Int. J. Adv. Manuf. Technol. 89, 2099–2117 (2017). https://doi.org/10.1007/s00170-016-9169-0

    Article  Google Scholar 

  4. Fletcher, G., Greenhill, A., Griffiths, M., McLean, R.: The social supply chain and the future high street. Supply Chain Manag. 21, 78–91 (2016). https://doi.org/10.1108/SCM-05-2014-0154

    Article  Google Scholar 

  5. Vizinger, T., Zerovnik, J.: Coordination of a retail supply chain distribution flow. Teh. Vjesn. - Tech. Gaz. 25, 1298–1305 (2018). https://doi.org/10.17559/TV-20161219120040

    Article  Google Scholar 

  6. Nagashima, M., Wehrle, F.T., Kerbache, L., Lassagne, M.: Impacts of adaptive collaboration on demand forecasting accuracy of different product categories throughout the product life cycle. Supply Chain Manag. Int. J. 20, 415–433 (2015). https://doi.org/10.1108/SCM-03-2014-0088

    Article  Google Scholar 

  7. Hulthén, H., Näslund, D., Norrman, A.: Framework for measuring performance of the sales and operations planning process. Int. J. Phys. Distrib. Logist. Manag. 46, 809–835 (2016). https://doi.org/10.1108/IJPDLM-05-2016-0139

    Article  Google Scholar 

  8. Haddad, C.R., Ayala, D.H.F., Uriona Maldonado, M., Forcellini, F.A., Lezana, Á.G.R.: Process improvement for professionalizing non-profit organizations: BPM approach. Bus. Process Manag. J. 22, 634–658 (2016). https://doi.org/10.1108/BPMJ-08-2015-0114

  9. von Rosing, M., Scheer, A.-W., von Scheel, H.: The Complete Business Process Handbook. Body of Knowledge from Process Modeling to BPM. Morgan Kaufmann, Burlington (2015)

    Google Scholar 

  10. Nabil, L., El Barkany, A., El Khalfi, A.: Sales and Operations Planning (S&OP) concepts and models under constraints: literature review. Int. J. Eng. Res. Africa 34, 171–188 (2018). https://doi.org/10.4028/www.scientific.net/JERA.34.171

    Article  Google Scholar 

  11. Arias, R., Alvarez, M., Quispe, G., Dominguez, F., Moguerza, J.M.: Interrelation model based on S&OP for small and medium-sized companies in the food sector. In: CISCI 2018 - Decima Septima Conferencia Iberoamericana en Sistemas, Cibernetica e Informatica, Decimo Quinto Simposium Iberoamericano en Educacion, Cibernetica e Informatica, SIECI 2018 - Memorias, vol. 1, pp. 37–39 (2018)

    Google Scholar 

  12. Khakbaz, S.B., Hajiheydari, N.: Proposing a basic methodology for developing balanced scorecard by system dynamics approach. Kybernetes 44, 1049–1066 (2015). https://doi.org/10.1108/K-12-2014-0287

    Article  Google Scholar 

  13. Bataineh, A., Shwiyat, Z.A., Alrjoub, A.: The effect of using balanced scorecard (BSC) on reducing production costs in the Jordanian industrial companies. J. Bus. Retail Manag. Res. 13, 190–202 (2019). https://doi.org/10.24052/JBRMR/V13IS03/ART-17

  14. Forslund, H.: Performance management process integration in retail supply chains. Int. J. Retail Distrib. Manag. 43, 652–670 (2015). https://doi.org/10.1108/IJRDM-09-2013-0174

    Article  Google Scholar 

  15. Hançerlioğulları, G., Şen, A., Aktunç, E.A.: Demand uncertainty and inventory turnover performance. Int. J. Phys. Distrib. Logist. Manag. 46, 681–708 (2016). https://doi.org/10.1108/IJPDLM-12-2014-0303

    Article  Google Scholar 

  16. Wee, H.: Inventory Systems: Modeling and Research Methods. Nova Science Publishers, New York (2011)

    Google Scholar 

  17. Nigah, R., Devnani, M., Gupta, A.K.: ABC and VED analysis of the pharmacy store of a tertiary care teaching, research and referral healthcare institute of India. J. Young Pharm. 2, 201–205 (2010). https://doi.org/10.4103/0975-1483.63170

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Franco Paredes-Torres .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Paredes-Torres, F., Almeyda-Crisostomo, G., Viacava-Campos, G., Aderhold, D. (2021). Collaborative Model to Reduce Stock Breaks in the Peruvian Retail Sector by Applying the S&OP Methodology. In: Ahram, T., Taiar, R., Langlois, K., Choplin, A. (eds) Human Interaction, Emerging Technologies and Future Applications III. IHIET 2020. Advances in Intelligent Systems and Computing, vol 1253. Springer, Cham. https://doi.org/10.1007/978-3-030-55307-4_81

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-55307-4_81

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-55306-7

  • Online ISBN: 978-3-030-55307-4

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics