TITLE:
Determinants of Stock-Out in Retail Shops in Ghana: Evidence from Kumasi Metropolis
AUTHORS:
Charles Adusei, Dadson Awunyo-Vitor
KEYWORDS:
Retail Shops, Stock-Out, Kumasi Metropolis, Ghana, Logit
JOURNAL NAME:
Modern Economy,
Vol.5 No.13,
December
23,
2014
ABSTRACT: This study investigates factors influencing
stock-out occurrence in retail shops in Kumasi Metropolis in Ghana. The study
sampled two hundred and forty four retail outlets located
in the central business areas of Kumasi Metropolis. A well structured
questionnaire was used to solicit information from the respondents. Both
descriptive statistics and inferential statistics were used to analyse the
data. The results of the study revealed that delay in supplier’s items, demand
underestimation, and bad back-of-store practices were the main causes of
stock-outs. Generally, the study reveals that most retailers are not equipped
to use most of the sophisticated stock control techniques and only limit
themselves to the use of stock books to control stock. Information and communication
technology and collaboration with suppliers were considered by the retailers as
the main stock control implementation barriers. The study concludes that, although
retailers are aware of the occurrence and the causes of stock-outs, many of
them had done little to put in place measures to control it; and even the few
that have been able to put in place stock control measures were confronted with
implementation challenges. It is therefore recommended that retailers should
adopt effective and efficient stock control techniques to limit out-of-stock occurrence.