Data Warehousing: Using the Wal-Mart Model

The analysis for slow-selling articles is the exact opposite of the fast-selling analysis. What a retailer will do with aslow-selling analysis is to determine the poorly performing articles. After it is determined that an article is a slow mover, themerchant has several opportunities for action to improve the business. If there are any outstanding purchase orders, they should becanceled or pushed back to a later date. It may be necessary to work with marketing to create a promotion to help stimulate sales.The merchant could also make a price change to move the merchandise faster. If the information is available, the merchant may workwith store operations to find a new location for the article in the stores.
As with the fast-selling analysis, each retailer will have its own measurements to determine which articles are slow moving.It may be that each merchandising department will have a different standard for defining what is a slow-selling article. Forexample, beer will generally sell faster than novelty merchandise, so a stock-to-sales ratio of 4 would be unacceptable for beer,whereas that same ratio would indicate a fast mover for novelty merchandise. The point is that managementmay need to establish different performance objectives for each department.
This analysis uses the data elements from the basic article POS data analysis and from the article inventory data analysis.Again, it is likely that each retailer will have specific metrics or formulas to define a slow-moving article. No additional dataentities are needed. However, some data elements may...