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RTM Simulation

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.

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anish mahto
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31 views

RTM Simulation

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.

Uploaded by

anish mahto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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

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