Measuring Customer Response to Stock‐Outs

Abstract

Traditionally, the distribution activities of a firm have been regarded solely as a cost of doing business. Because of this orientation, the analytical techniques applied to the solutions of problems in this area have tended to be optimising models aimed at reducing total cost subject to various constraints. Typically, service levels were incorporated either as an absolute level requirement so that the specific demand restricted the optimising technique or as an opportunity cost of lost sales with this cost included as a part of the total objective function to be minimised.

Citation

Miklas, W.E. (1979), "Measuring Customer Response to Stock‐Outs", International Journal of Physical Distribution & Materials Management, Vol. 9 No. 5, pp. 211-242. https://doi.org/10.1108/eb014447