Finding the Right Balance between Too Much and Too Little
Intermittent demand is far too often a stumbling block for inexperienced inventory managers. A few common mismanagement mistakes lead to deep cuts in a retailer’s GMROI.
Generally paired on the shelf alongside high-demand products, intermittent and low-demand products account for 35%-40% of retailer assortments, and can account for 35% of a retailer’s profits. Therefore, effective supply management of intermittent demand and low-demand products, especially in today’s cutthroat retail markets, is no longer a just question of competitive advantage, but rather one of survival.