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Demand and supply chain planning in grocery retail: an operations planning framework

Alexander H. Hübner (Business Department, Operations Management, Catholic University Eichstätt‐Ingolstadt, Ingolstadt, Germany)
Heinrich Kuhn (Business Department, Supply Chain Management and Operations, Catholic University Eichstätt‐Ingolstadt, Ingolstadt, Germany)
Michael G. Sternbeck (Business Department, Supply Chain Management and Operations, Catholic University Eichstätt‐Ingolstadt, Ingolstadt, Germany)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 31 May 2013

11468

Abstract

Purpose

The purpose of this paper is to develop a holistic operations planning framework for grocery retailing. The authors aim to identify, describe and structure coherent demand and supply chain (SC) planning problems in a comprehensive architecture.

Design/methodology/approach

The authors reviewed key literature on retail SC management and sales planning. This built a foundation for the development of an integrated operations planning framework. The findings were evaluated through discussions with retailers and communications with retail planners, including personal interviews with 28 leading European grocery retailers and with people in related positions from the consumer goods industry and consultancies.

Findings

The core of this paper is the development of a coherent demand and SC planning matrix. It demonstrates planning interdependencies and defines a framework for retail operations. The grocery planning framework integrates retail specifics, as well as hierarchical and sequential aspects of decision making. That is why this planning architecture also forms the foundation for research and development of advanced decision support systems.

Practical implications

Planning tasks are identified in interrelated planning modules permitting coordinated and decentralised decision making, which is necessary for operational and complexity reasons. The planning framework assists retail planners in understanding their decision problem from a comprehensive perspective. Better coordination of different modules and further development of retail‐tailored analytical models will improve planning quality.

Originality/value

This is the first paper that structures retail demand and SC planning questions coherently in one framework, matching demand and supply from a long‐ to short‐term perspective and from supplier to customer.

Keywords

Citation

Hübner, A.H., Kuhn, H. and Sternbeck, M.G. (2013), "Demand and supply chain planning in grocery retail: an operations planning framework", International Journal of Retail & Distribution Management, Vol. 41 No. 7, pp. 512-530. https://doi.org/10.1108/IJRDM-05-2013-0104

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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