Continuous Inventory Level Monitoring Replenishment Model for Modern Trade

Stock Replenishment process is a major area of concern for modern retail in India. The paper explores various problems associated with the supply chain design to improve the stock replenishment process by reducing the information gap in the supply chain. Author has proposed Continuous Inventory level Monitoring (CILM) framework to make the information flow more efficient. The framework provides a way to track the status of inventory at various nodes in supply chain. This will help to tackle various problems in supply chain like – sudden demand spikes, stock-outs at retail store, Raw material and Packaging material procurement, information flow delays etc. It also provides for calibrating the forecasting so as to have better predictions. In the end paper briefs about how the logistics cost can be reduced using this framework. The limitations of the application of the framework are the degree to which the stakeholders agree to share information among them. In ideal scenario all the entities will be sharing the information as required by the model.