ABSTRACT
The problems which face the multiple chains of shoe-retailers in the United Kingdom are similar. Excluding the multiples who also manufacture, the main functions of the high-fashion multiple chain can be broadly classified as buying, distributing and retailing footwear and similar goods. The problem is reduced to determining some basic costs, the probability distributions associated with demand for shoes by branch, style, material, colour, fitting and size, and the chance of diverting a sale. The customers’ arrival pattern generally conforms to the Poisson probability distribution described in the earlier section on Statistical Methods. The basic restraint in high-fashion shoe retailing is the inherent lack of flexibility in receipt of seasonal supplies. The problem is to sell the goods which are already stocked or committed to delivery over the season. Emphasis must always be on maximizing sales rather than minimizing stock-holding.
