Abstract
The paper discusses possible scenarios of cannibalization and how they challenge the retailer's operations. We focus especially on cannibalization of the same product in terms of quality and price. Scenarios of quality and price strategies are presented and based on these a conceptual replenishment model is developed. The paper concludes that the two main challenges for retailers are to optimize profit and to reduce waste. A possible strategy to obtain this may be to introduce dynamic pricing and replenishment decisions
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