For any retail business, nothing compares to placing the product on the shelf when it comes to generating revenue. However, fashion retailers have additional challenges like assortment, colections, styling and size. Imagine the disappointment of a customer finding all sizes but his or hers and the impact on the business and the reputation.
We developed DTLR Transfer Optimization for fashion retailers to overcome this hurdle. Our algorithm is capable to optimize the inventory, based on a full-size assortment availability. The model employs the real-life retail business constraints such as the cost of transferring a product across the stores and a fair distribution among the sales points.
The transfer optimization algorithm periodically reviews the sales of each product in every store, incorporating the cost variables, makes suggestions on relocating the poor performing products to stores that score better sales with them.