The development of retail exchanges is stimulating further change in supply chains and buyer - supplier relationships. Indian Government, opening the Foreign Direct Investment (FDI), now needs a systematic approach to make the business more efficient.
Due to invisibility, poor synchronization and variability, the merchandise price in India gets inflated, as a result of Bullwhip effect.
The thesis analyzes the inventory control models used by the retail industry in USA, UK and Argentina, and then decides the model best suitable after the analysis of Indian Retail market and its evolution. In the part of strategy, the thesis suggests the paradigm shift in terms of Economies of Scale and Logistics to make this model successful - systemically.
Research tool is the questionnaires sent to 198 retail companies and the statistical analysis of the mathematical hypothetical model.
The thesis will give an idea to develop the supply chain strategic model for the retail business in India. It will also be a good reference for the international players like Wal-Mart (USA) and Metro (Germany) to launch in Indian retail market.
Rigorous study involving gathering information from various journals, articles from Harvard Business Review, Mckinsey study and Kurt Salmon Associates (KSA) was done.