📊 Rethinking inventory strategy — new system dynamics research challenges retail norms.
A recent study shows that introducing a competing product earlier during an existing product’s decline phase can lead to higher long-term revenue. 🤯
Key insights for retail leaders:
🛒 Inventory decisions must model real substitution behavior
🔁 Early introductions can phase out old products more profitably
🧮 Demand forecasting should include stockout effects
📦 Safety stock planning and shorter review cycles reduce lost sales
🧠 Dynamic, not static, strategies win in FMCG and tech retail
This is a must-read for anyone managing product portfolios, especially in fast-moving markets where demand shifts fast and substitution patterns aren't predictable.
