The Spread of Scarcity: An Empirical Analysis of Intra-Firm Product
\nSubstitutability in Fashion Retailing<\/p>\n
Mehmet G\u00fcm\u00fc\u015f \u2013 McGill University
\nFebruary 19, Friday, 16:00<\/p>\n
Zoom Meeting
\nTo request the event link, please contact to the department.<\/p>\n
This study offers an empirical investigation of product shortages on
\nsales in neighboring outlets in the setting of a multi-store fast
\nfashion retailing chain. We use a unique dataset consisting of the
\nweekly sales and inventory levels for all the products sold by this
\nretailer across more than 300 stores. We perform various specifications
\nthat test for the impact of stock-outs in a store chain structure. Our
\nanalysis reveals that sales for a particular item at a focal store
\nincreases when that same item experiences stock-outs in neighboring
\nstores, especially so for neighboring stores that are physically closer
\nto the store experiencing the stock-out. Following these empirical
\nresults, we produce some managerial insights by further exploring the
\ndata. First, we show that inferred product substitutability patterns
\nacross stores vary depending on the location type, in that product
\nsubstitutability is more pronounced the outlet facing the stock-out is
\nlocated on streets as compared with outlets located in malls. Second, we
\ninvestigate the revenue impact of making inventory allocation decisions
\nusing the neighboring outlets\u2019 stock-out information.<\/p>\n
(Joint work with El\u00e7in Ergin and Nathan Yang)<\/p>\n
Mehmet Gumus is Professor of Operations Management at the Desautels
\nFaculty of Management at McGill University. In his research, he focuses
\non supply chain management, dynamic pricing, and risk management. His
\npapers are accepted for publication in Management Science, Operations
\nResearch, Manufacturing and Service Operations Management, Marketing
\nScience and Production and Operations Management. He serves as SE for
\nProduction and Operations Management, AE for Manufacturing and Service
\nOperations Management, and IIE Transactions. In 2017, he developed a new
\nspecialized Masters Program in Management Analytics (MMA) and since its
\ninauguration, he is managing the MMA program as the Academic Director.
\nIn 2015, he co-founded Plannica Inc. to develop an integrated Decision
\nSupport System for the supply chain planning solution and implemented
\nPlannica to various industries.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Spread of Scarcity: An Empirical Analysis of Intra-Firm Product Substitutability in Fashion Retailing Mehmet G\u00fcm\u00fc\u015f \u2013 McGill University February 19, Friday, 16:00 Zoom Meeting To request the event link, please contact to the department. This study offers an empirical investigation of product shortages on sales in neighboring outlets in [\u2026] <\/p>\n