ABSTRACT

An intermediate form, between the direct assortment profitability-system and the trinity model, is control using the break even mechanism. The trinity model is therefore especially useful for control purposes where branch operation plays a role, i.e. it is especially relevant in those situations where sales development is not the immediate problem, but rather cost control. Improving stock control is therefore very necessary. The chapter illustrates V&D example is actually an application of fair share analysis as a control instrument. A simplified form of the use of assortment dominance matrix as a control instrument can be found in the fair share analysis. The trinity model can be used when it comes to the overall objective, supplemented by control of the development of the operation. Sales development plays an important role in both models: ceteris paribus, positive sales development will always influence the key control variables favourably.