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APPLICATIONS OF OPERATIONS RESEARCH IN RETAIL SUPPLY CHAINS: A LITERATURE-BASED ANALYTICAL STUDY OF INVENTORY REPLENISHMENT AND STORE DISTRIBUTION

AUTHORS:
Arnav Singh Rawat
Ahaan Shah
Arpit Mishra
Aradhaya Chadha
Ananya Bhatia
Mentor
Affiliation
B.Sc. Finance / Anil Surendra Modi School of Commerce (ASMSOC) / NMIMS, Mumbai, India
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Retailers repeatedly decide how much stock to order, how to split it across stores and how to ship it, under uncertain demand and with limited stock, labour and vehicle capacity. This study examines how Operations Research (OR) has been applied to these inventory replenishment and distribution decisions. Five published studies are reviewed, two in full and three as supporting papers, covering four stages of the retail supply chain: ordering, allocation, shipping and the store shelf record. For each study, the decision variables, objective function, constraints, assumptions, solution method, software and validation are set out and assessed, and the integer programme of one study is re-solved with its own published data. In four of the five studies, the model outperformed the benchmark its authors chose, from a profit gain of 2.23% to 4.92% of sales at a catalogue retailer to an estimated 3% to 4% more sales at Zara, using existing stock, staff and vehicles. None of the problems was solved exactly in daily use; each relied on a tested simplification, usually the newsvendor trade-off or a linear approximation. The re-solved model reproduces its reported optimum of 342 pallets, but shows that the paper's claimed gain over past dispatch rests on the wrong figure, and that relaxing the full-load rule alone would raise the optimum to 379 pallets. The quality of validation is what separates the strongest studies from the weakest.

Keywords— Operations research; inventory replenishment; retail supply chain; integer programming; newsvendor model; stock allocation
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Rawat, A. S., Shah, A., Mishra, A., Chadha, A. & Bhatia, A. (2026). Applications of Operations Research in Retail Supply Chains: A Literature-Based Analytical Study of Inventory Replenishment and Store Distribution. International Journal of Science, Strategic Management and Technology, 02(10), 1-9. https://doi.org/10.55041/ijsmt.v2i10.033

Rawat, Arnav, et al.. "Applications of Operations Research in Retail Supply Chains: A Literature-Based Analytical Study of Inventory Replenishment and Store Distribution." International Journal of Science, Strategic Management and Technology, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijsmt.v2i10.033.

Rawat, Arnav,Ahaan Shah,Arpit Mishra,Aradhaya Chadha, and Ananya Bhatia. "Applications of Operations Research in Retail Supply Chains: A Literature-Based Analytical Study of Inventory Replenishment and Store Distribution." International Journal of Science, Strategic Management and Technology 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijsmt.v2i10.033.

References
[1] H. A. Taha, “Operations Research: An Introduction,” 10th ed.: Pearson, 2017.

[2] R. S. Cruz, E. R. Viana, A. M. da Silva, and A. das N. Gomes, “Optimization model for materials expedition: An aplication [sic] in a retail chain store,” Independent Journal of Management & Production, vol. 7, no. 5, pp. 627–642, 2016, doi: 10.14807/ijmp.v7i5.454.

[3] F. Caro and J. Gallien, “Inventory management of a fast-fashion retail network,” MIT Sloan School of Management, Cambridge, MA, USA, Working Paper 4656-07, 2007. [Online]. Available: http://ssrn.com/abstract=1007075. Later published in Operations Research, vol. 58, no. 2, pp. 257–273, 2010, doi: 10.1287/opre.1090.0698.

[4] N. DeHoratius, A. J. Mersereau, and L. Schrage, “Retail inventory management when records are inaccurate,” unpublished manuscript, Graduate School of Business, The University of Chicago, Chicago, IL, USA, Nov. 10, 2005. Later published in Manufacturing & Service Operations Management, vol. 10, no. 2, pp. 257–277, 2008, doi: 10.1287/msom.1070.0203.

[5] M. Fisher, K. Rajaram, and A. Raman, “Optimizing inventory replenishment of retail fashion products,” Manufacturing & Service Operations Management, vol. 3, no. 3, pp. 230–241, 2001, doi: 10.1287/msom.3.3.230.9889.

[6] S. K. Jaiswal, K. S. Gurumoorthy, E. Agarwal, and S. Manchenahally, “INVALS: A forward looking inventory allocation system,” arXiv:2310.04305v2, 2025.
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This article has undergone plagiarism screening and double-blind peer review. Editorial policies have been followed. Authors retain copyright under CC BY-NC 4.0 license. The research complies with ethical standards and institutional guidelines.
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