Inventory Management of a Fast Fashion Retail Network

Authors : Rohan Bawkar, Sahil Jain, Sanushka Bhuta, Shaurya Pokhriyal, Shivam Bhardwaj

Volume/Issue : Volume 2 - 2017, Issue 10 - October

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Zara is by far the most internationalized of the chains .Its marketing strategy focuses on product variety ,efficient and speedy transfer of materials to market and store location. Its achievement is based on a business structure that depends on vertical integration, local production, centralized distribution centre, quick response and low advertising cost. Zara faced rough competition internationally with companies such as H&M ,Gap and Benetton .Zara offers on average 11000 articles in a given season compared to 2000-4000 items from key competitors .Hence Zara customers visit the store 15-17 times on an average every year .15%–20% of Zara’s sales are typically generated at marked-down prices compared with 30%–40% for most of its European peers, with an average percentage discount estimated at roughly half of the 30% average for competing European apparel retailers. The fast-fashion retail model just mentioned gives rise to some challenges. The task described here, which has been conducted in association with Zara, addresses the specific problem of distributing, over time, a inadequate amount of merchandise inventory between all the stores in a retail network. Note Legacy process and new process intended to determine weekly shipments to stores.


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