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Preview division divides M proportional to preview demand, i.e., each SKU n 2N gets fraction
This method is included because it is used by the case company, in combination with Method 2. Preview division was previously pro posed by Chambers and Eglese (1988). However, they restrict the method to grouping SKUs per ‘product line', while here it can be applied for any chosen way of grouping.
As What is the major value of the weighted cost of capital calculation for the firm?k question #Minimum 100 words accepted#
Source of short term finance
The case company combines SKUs into product groups and product groups into assortment groups. The methods based on advance demand information (Methods 1-3) can therefore be on a pr
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