Exploring the Connections between Backrooms, Inventory Record Inaccuracies, and Waste

Madison J. Bixler and Dorothée Honhon
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Madison J. Bixler: Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX 75080, USA
Dorothée Honhon: Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX 75080, USA

Sustainability, 2021, vol. 13, issue 17, 1-12

Abstract: This paper explores the impact of retail store backrooms on inventory record inaccuracies (IRI) and waste. A trend in the retail industry is operating in the absence of a backroom. Benefits of operating without a backroom can include more employee presence on the sales floor, quicker replenishment (or the elimination of traditional backroom to shelf replenishment entirely), lower on-hand inventory, and the reduction of waste in the form of time, labor, cashflow, and product obsolescence. By conducting a literature review of the published literature on retail backrooms, this paper explores two additional unstated benefits to retailers operating without a backroom; specifically, the reduction of IRI and waste—an angle that has been previously understudied in the current academic literature. The objectives of this paper include defining a link between the existence of a backroom and waste/IRI, presenting an opportunity for future research in this area of study, and providing practical advice for corporations that wish to operate with or without a backroom.

Keywords: backroom; inventory record inaccuracy; waste; phantom stockout (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:17:p:9490-:d:620387

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