Improving the sales process of profitable perishable goods: an inventory control strategy in a planned economy

Abstract

Purpose

The purpose is to have appropriate planning for reducing costs during the procurement process and increasing profits during the sales period in a supply cycle at a retail store. To make the proposed model practical, efforts have been made to implement the existing constraints in a business environment and legal factors.

Design/methodology/approach

To achieve the objectives of this research, a mixed-methods approach was employed. Initially, sales data was collected, and industry experts were consulted to identify key products. A mathematical model and a particle swarm optimization algorithm were utilized for simulation and optimization. Furthermore, time series forecasting techniques were employed to estimate demand accurately.

Findings

The findings of this research emphasize the importance of considering all factors affecting costs simultaneously when utilizing tools to reduce costs during the planning period. It was observed that certain tools, which individually have a favorable effect on costs, may collectively result in an increase in costs over the examined period. This highlights the need for a comprehensive and integrated approach to planning.

Research limitations/implications

The business environment and legal factors in each country are among the factors that affect the performance of retailers, which has received less attention in previous research. This research aimed to address this gap by considering various factors. However, it is important to note that the proposed model has been investigated in research in hypermarkets and is applicable, but it cannot be generalized to other retailers.

Originality/value

Applicability and consideration of new limitations in simulation along with consideration of the complete process from buying to selling goods.