| |
Right Test
Description
Right Test identifies which stores within a chain are best to be used for a new product test, and calculates how the results of the test can be applied to scale up a forecast of season demand across the entire chain.
In addition, when preparing to introduce new products retailers need, in some cases, to determine the quantity for their initial order. It is critical to optimize the cost of stock outs balanced against the risk of obsolescence.
Yet, with no sales history, attempting to apply traditional forecasting methods to new products can prove to be extremely difficult. As a result, many retailers conduct tests in which products are offered for sale under carefully controlled conditions in a small number of stores. The success and validity of these tests are dependant on correctly answering two crucial questions:
Which stores should be used? How can test results be used to accurately create a chain-wide forecast?
|
|