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Exploring the Connections between Backrooms, Inventory Record Inaccuracies, and Waste

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  • Madison J. Bixler

    (Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX 75080, USA)

  • Dorothée Honhon

    (Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, TX 75080, USA)

Abstract

This paper explores the impact of retail store backrooms on inventory record inaccuracies (IRI) and waste. A trend in the retail industry is operating in the absence of a backroom. Benefits of operating without a backroom can include more employee presence on the sales floor, quicker replenishment (or the elimination of traditional backroom to shelf replenishment entirely), lower on-hand inventory, and the reduction of waste in the form of time, labor, cashflow, and product obsolescence. By conducting a literature review of the published literature on retail backrooms, this paper explores two additional unstated benefits to retailers operating without a backroom; specifically, the reduction of IRI and waste—an angle that has been previously understudied in the current academic literature. The objectives of this paper include defining a link between the existence of a backroom and waste/IRI, presenting an opportunity for future research in this area of study, and providing practical advice for corporations that wish to operate with or without a backroom.

Suggested Citation

  • Madison J. Bixler & Dorothée Honhon, 2021. "Exploring the Connections between Backrooms, Inventory Record Inaccuracies, and Waste," Sustainability, MDPI, vol. 13(17), pages 1-12, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9490-:d:620387
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    References listed on IDEAS

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    Cited by:

    1. Lena Riesenegger & Alexander Hübner, 2022. "Reducing Food Waste at Retail Stores—An Explorative Study," Sustainability, MDPI, vol. 14(5), pages 1-21, February.

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