Abstract: This invention relates to the introduction of new products into a chain of stores in a manner that minimizes out of stock at store as well as cannibalization of sales by a previous product that the new product replaces. The new product could be a new model in the case of consumer electronics products like TVs, cameras and phones or a new packaging in the case of consumer packaged goods like food and beverage products. Typical store chains initiate or stop product purchases across the chain of stores when replacing an older product with a new product. Utilizing an approach of grouping stores by sales velocity and utilizing different cutoff dates for replenishing old products ahead of new product launch across the chain of stores, a retail chain can minimize lost sales at faster turning stores and minimize cannibalization of sales at slower turning stores.

Abstract: This invention relates to the assortment of new products into a chain of stores in a manner that maximizes profit for a store-product combination utilizing average weekly gross margin return on inventory investment (GMROII). Typical product assortment logic relies on store groupings to determine which stores should carry which products. The assortment decision is also taken by grouping products together by product characteristics like brand, size, color etc. Utilizing average weekly gross margin return on inventory investment as a criterion for assorting products implies making the product assortment decision at the store—product level instead of at a group of stores—product characteristic level. Also, by utilizing the profit contributed by a product—store combination as one of the primary criteria in assortment, it is possible to improve margins for the store chain.