Track: Inventory Control

Abstract

“Haat” is a periodic rural market in India that often occurs once or twice a week. Since time, Haat has fulfilled the daily basic requirements of rural India. Indian Haats have been facing several challenges over the years. This study first aimed at understanding the primary challenges faced by the rural retailers in Haat. This is done by surveying a local Haat, famous as “BIT Haat” located at the Mesra Village near Ranchi, Jharkhand, India. Initial discussion with the retailers revealed that significant portions of the retailers are poor and do not have high buying capacity. Their profit margin fluctuates with the increased demand variability of the market. Thus, often it became difficult for them to estimate the order quantity of various perishable items. This work provides a methodology based on the newsvendor model to identify which of the items a retailer sells requires a change in order quantity. The methodology is tested on the data obtained from a vegetable seller in the stated Haat. It is found that the methodology works efficiently for the retailers who sell perishable items.