Background Note | HBS Case Collection | May 2003

How to Induce Retailers to Reduce Stockouts?

by V.G. Narayanan

Abstract

Describes how the lack of incentive alignment between retailers and their vendors can lead to stockouts. Also describes various means to reduce incentive misalignment and hence stockouts.

Keywords: Motivation and Incentives; Supply Chain Management; Order Taking and Fulfillment; Distribution; Alignment; Business Strategy; Consumer Products Industry; Industrial Products Industry; Retail Industry;

Citation:

Narayanan, V.G. "How to Induce Retailers to Reduce Stockouts?" Harvard Business School Background Note 103-080, May 2003.