Skip to main content

A seminar on "Market Basket Rules as Input to Improve Inventory Performance" at IME, IIT Kanpur

IME department organized a seminar on “Market Basket Rules as Input to Improve Inventory Performance” and invited Dr. Pradip Kumar Bala to deliver his valuable lecture on it. Dr. Bala is associate professor at IIT Roorkee in Department of Management studies. Dr. Bala introduced the association rules, also known as market basket rules, in the context of retail items.

Market basket rules have been widely used in marketing, shelf allocation in retail stores, web designing in commerce etc; however, according to him, the works on applications of these rules in the area of operations management have been limited so far. He mentioned that recently a few works with applications of market basket rules in inventory management have been applied. According to him, the knowledge of correlated items in the form of association rules can be of tremendous importance in designing inventory replenishment policies and hence, it must be accounted for. The research incorporated in his current work makes an attempt to account for demand correlation at transaction level in retail inventory management. The cost of joint replenishment for correlated items is often found to be much less than the total cost of individual item replenishment. However, just the knowledge of the names of items with correlated demand, and a type of relationship are not always sufficient. We need to know the probabilities or probability distribution of joint demand. When the number of items increases, the complexity of the demand relationship among the items increases dramatically, making it infeasible to calculate all probabilities of joint demand in advance.

To overcome this, he suggested to make use of the association rules which are mined from the past transaction data. The impact of association rules can be used to compute the profitability measure which forms the basis of grouping items with high probability of purchase in the same group. Replenishment policy can be designed for each group separately with higher profitability of inventory operation. The research suggests a measure for profitability index and an algorithm for grouping the items based on the profitability index.

Finally the seminar was wrapped up with queries from faculty and students of the department, which churned out some interesting perspectives and left the attendees with many issues to mull over.

Contributed by:



Vivek Agarwal
MBA, 2011-13
IIT Kanpur

Comments

Popular posts from this blog

An Introduction to the batch of 2019-21

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." A new zeal, vigour, and an unquenchable thirst for proving oneself is what describes MBA batch of 2019-21. 52 of us set foot on the pavement of a new journey and needless to say it has been unprecedented. Be it the early morning presentations, the stark midnight deadlines, or the never-ending case studies covering the gamut of concepts and context, each one of these activities can vouch for it. It has hardly been a month, yet the batch has acclimatized well with the life of one the most coveted institutes in the country, IIT Kanpur.
For most of us, this is the desired path, and for the rest, it is an opportunity to relive their school days. Since we are in a place that has no norm and instead offers endless diversity, there will always be something that entertains and challenges us. It is time we took this opportunity to build a lasting relationship with our c…

The 2018-20 batch, an initiation!

Time to take a plunge –  2018-2020Batch


The journey of a thousand miles begins with a single step
                                                                                            – Lao Tzu.

The energy of the Indian subcontinent unified at the gates of IIT Kanpur when we started our much- awaited journey of MBA. The pre-assignments and admission process gave us a much-needed glimpse of life ahead of us. With all glittering hopes, we, the 54 minds embarked on an endeavour to achieve our dreams and here we are, introducing our remarkable 2018-2020 batch with immense pride and responsibility wearing the badge of IIT Kanpur.

For most of us, who have prior work experience, it is a back to school time and for the rest, it is an aspired path by choice, now that we are in our new home, it is time for us to build an everlasting relationship with our peers and let the world know about us. With the get-up-and-go attitude, the diversity of the 2018-2020 batch is one of a kind with studen…

Tips from Top, Digital Marketing – A Key Perspective by Mr Vikash Kumar and Mr. Mohit Goel (Trident Ltd)

Mr Vikash Kumar, Chief Digital Officer at Trident Group India Ltd, visited the IME department at IIT Kanpur along with his colleague Mr Mohit Goel, GM at Digital Trident, on the 3rd of September, 2016. Talking about the changing scenario of digital marketing and the challenges and opportunities that it poses for today’s marketing managers, he shared his insights as the Chief Digital Officer of the textile giant Trident India Ltd, about the marketing and branding strategies being followed in the current scenario.

Mr Kumar stressed upon keeping the session as informal and interactive as possible, making it into a dialogue rather than a one-way lecture. He started with defining digital marketing as a medium that provides two way flow of information or communication on world wide web. He emphasized on how the rapidly changing world of digital marketing has made textbook knowledge insufficient, and further emphasized the importance of learning on the job, staying unique, and believing in o…