Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    RTM Simulation

    Uploaded by

    anish mahto
    The group had high market share in the first three rounds due to providing the highest salesperson incentive and lowest retailer trade incentive. However, incorrect demand projections in round one led to high distributor margins and inventory holding costs. This caused losses from high inventory costs despite good sales. The group also focused on all products instead of focus products and had less sales from retailers with excess inventory.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    RTM Simulation

    Uploaded by

    anish mahto
    6 views5 pages
    The group had high market share in the first three rounds due to providing the highest salesperson incentive and lowest retailer trade incentive. However, incorrect demand projections in round one led to high distributor margins and inventory holding costs. This caused losses from high inventory costs despite good sales. The group also focused on all products instead of focus products and had less sales from retailers with excess inventory.

    Original Description:

    Original Title

    RTM SIMULATION

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The group had high market share in the first three rounds due to providing the highest salesperson incentive and lowest retailer trade incentive. However, incorrect demand projections in round one led to high distributor margins and inventory holding costs. This caused losses from high inventory costs despite good sales. The group also focused on all products instead of focus products and had less sales from retailers with excess inventory.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    6 views5 pages

    RTM Simulation

    Uploaded by

    anish mahto
    The group had high market share in the first three rounds due to providing the highest salesperson incentive and lowest retailer trade incentive. However, incorrect demand projections in round one led to high distributor margins and inventory holding costs. This caused losses from high inventory costs despite good sales. The group also focused on all products instead of focus products and had less sales from retailers with excess inventory.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 5

    RTM

    SIMULATION
    Group 4
    What went Right?

    • High market share in first 3 rounds


    • Provided highest salesperson incentive
    • Provided lowest retailer trade incentive
    What went Wrong?

    • Incorrect order projections In round 1


    • Distributer margin was high from round 1, due to large order quantity
    • Holding cost was high
    • Loss due to high Inventory Cost
    • Focused on all products
    • Less sales from MT retailer where heavy inventory was available
    • No marketing because of the losses
    Learnings

    • Criticality of proper demand forecasting


    • High inventory costs can affect the profits, despite having good
    sales
    • Stockouts are better than having high inventory
    • Should have concentrated more on focus products
    Thank You

    You might also like