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UsesJérémie(MITSchoolGarcíaManuelstores
UsesJérémie(MITSchoolGarcíaManuelstoresinventoryZarachallengedetermineexactarticleeach(warehouseinventoryarticle)warehousefollowswherebycycleonlystorefrequentlythanretailers;stores(driventheidentifiedavailable).ma
nagersS,M,L),minor(e.g.XXL),article,inve
nagersS,M,L),minor(e.g.XXL),article,inventoryfromwitharticle,removingtakenwhenincompletethatremovedshippedstoreremainsclearancemaysome(e.g.enough(e.g.ruledescribedprescribedanyfrom(typicallylowering)remainingShipme
ntsprocessdescribedrelativelysmallprojec
ntsprocessdescribedrelativelysmallprojectrelatedimprovementopportunities,process.centeredmanagers,compensationcareerdrivendegreetheachievedtheirbelievemanagersrequestedquantitiestruemanagersresponsiblemanagers requ
ested shipment quantitiesfor each refere
ested shipment quantitiesfor each reference and size warehouse shipments inventory in stores, past sales warehouseinventory store inventory store managers input demand forecasts optimization model shipments in
ventoryin stores warehouseinventory mod
ventoryin stores warehouseinventory model assortment decisions (a) Legacy Process(b) New Process assortment decisionsseveralenvironmentssubjectinvolvementmerchandisereplenishmentlargethereviewingarticlesthancreat
edmadechallenginginventoryallocationsmax
edmadechallenginginventoryallocationsmaximizedevelopedZaracomputeweeklyshipmentsconsistsrequestsforecasts.eachremainingdecisiondetailswork,implementationimplementationmanagementanalyticalanddetails.generateseveryeve
rymethodologyforcompletenoteworthyimplem
rymethodologyforcompletenoteworthyimplementedcombinationtwosourcesarticle,andconvertedtakingaccountwhenpredictionconsideredeffectscatteringthecriticalinventoryeffectreflectsstorecertainhighlightedareatheclassicalin
ventoryeachjointly,modelMaximizeP*Networ
ventoryeachjointly,modelMaximizeP*NetworkStoreSales + K*FinalWarehouseStockNetworkStoreSales = Inv-to-Sales(StoreInventory + Shipments)Subject toShipments = InitialWarehouseStockFinalWarehouseStock = InitialWarehous
eStock ShipmentsHighRepresentationlastd
eStock ShipmentsHighRepresentationlastdevelopmentapproximationsstorecomputeexpectedinventoryfeaturesthesoftware.computessizesmodelschallenging,establishingaccesslargedatabasesinventorywarehousecomputecriticalMIPva
luedthanWarehouseEmployeesOptimizationAn
luedthanWarehouseEmployeesOptimizationAnalysisCorredoiraIBMfeeding(SQLapplicationcurrentlyexecutedcompanyseachimplementationsecondemployeesapplicationanalysis;andtheseinfrastructureprojectZaraentireseemedwithvisio
nhistoryshowingtheawarenesscompanyessent
nhistoryshowingtheawarenesscompanyessentiallywhenproject.currentwherebyregularemployeesdeterminethisimplementationcommunicatedearlyinitiatedresearchersGallien)(Ramos,Montes).enriching,challengesincentives(LFM)devel
opmentpreparationcatalystthenewtheteamea
opmentpreparationcatalystthenewtheteamearlyhelpmerchandiselegacymorehelpedprioritiesenergiesmembers.culturalbarriersModel Development Process DeploymentSoftware Development2005 2006 Jan Feb MarAprJunJulOctSepDec
NovAug Oct Sep Dec Nov Jan 2007 Forec
NovAug Oct Sep Dec Nov Jan 2007 Forecast Model DevelopmentLive Pilot J. Correas LFM Internship Zara Approves LFM InternshipFeb JunDeploymentCompleted Meeting in Zara HQDeployment Completed in ZaragozaZara
Assigns Figureprojectphasesmilestonesab
Assigns Figureprojectphasesmilestonesabove,completedevelopmentimplementationworksecondbetween$250,000,whichexcludesControl(IllustrationArticle).followedestimateimplementationimplementationtestthatexclusivelyreceive
primaryArteixo,roughlyArteixo warehouse
primaryArteixo,roughlyArteixo warehouse Zaragoza warehouse test article Shipments of control article determined with legacy process control article test article control article Shipments of both test and control a
rticles are determined with legacy proce
rticles are determined with legacy process Zaragoza stores Arteixo stores Relative sales comparison Relative sales comparison Optimization model and new process used to determine shipments for test article repr
esentscontrolarticlescarefuldistributedl
esentscontrolarticlescarefuldistributedlegacyperformedrelativecomparisonandexternal(whichreceivesrelativelystores,articlesmanualmethodologyabove:Zaragozagroupsprocedure,measurednetworkEstimatedfromEach point on thi
s graph represents the difference in rel
s graph represents the difference in relative change of sales during the live pilot between a test article and its paired control article Difference in Relative Change of Sales Between Test and Control Articles (%)
increasedablemaintainearlyenrichingthi
increasedablemaintainearlyenrichingthishavetheseeingtheirrepetitiveexceptionimprovement.ImpacthadvisionThispartandalsoTruthitschallengescreatingclothes,clearthatHowever,herepromptrealizationmanyZarasexecutivesemp
loyeesdesignedtwoimplementationwaswithO.
loyeesdesignedtwoimplementationwaswithO.R.theaddition,thisConcludingBecausetheacademicmodelsherealsoclearlysomechallengebecauseversionO.R.inventorystoresproportionalacademicuniversitiesdurationimpactedresearchimple
mentationpresentedhastheseveralexecutive
mentationpresentedhastheseveralexecutiveO.R.members,example,seemimportantandO.R.allexperienceimplementationcomprehensivepresentchallenges,carefullyeffective.currentlyperceivedthereforeincreaseawarenessO.R.,applica