When it comes to merchandise planning, the current volume of decisions is enormous. Consider that a retailer with 10 price zones, 10 ad zones, 50 stores, and 50,000 products is approximately 3 million per week (1,000 promo items at 10 ad zones plus 50,000 prices at 10 price zones plus 50,000 inventory decisions at 50 stores). If one had 50 merchants, that means the merchants would have to make 125 decisions per minute, for 40 hours per week. The number of potential decisions to evaluate would be 10>3,000 i.e. far, far beyond human capability.

Read the full article from Retail Leader here.

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