Retail & wholesale inventories: A literature review and path forward

Abstract

Efficient management of inventories is essential for both retailers and wholesalers. Two disciplines which have extensively studied retail and wholesale (R&W) inventories are supply chain management (SCM) and economics. Each discipline is affected by R&W inventories but has taken different approaches to investigating these inventories, presenting an opportunity for learning between disciplines. In this manuscript, we aim to advance the study of R&W inventories in the SCM discipline. We accomplish this goal by reviewing and synthesizing SCM and economics research set in the R&W sectors that studies inventories or inventory performance as the outcome of interest. To synthesize the literature and develop research suggestions, we develop a framework along which to classify the existing literature to identify gaps and opportunities, grouping the literature based on (1) the level at which inventory is studied (sector/industry level, firm level, or SKU/product/category level) and (2) the type of predictors that are studied (internal or external). Based on the literature review, we identify opportunities for future research to enhance our understanding of R&W inventories, with research falling within four topics: (1) resolving inconsistencies across studies; (2) expanding the study of R&W inventories within the developed framework; (3) cross-level theorizing; and (4) theorizing across time.