Clorox

Clorox disinfecting wipes are the star products of Clorox, having a lion’s share of sales amongst its competitors. The company has been traditionally using just the past sales data for forecasting its immediate future demand. The major problem with these kinds of models are they do not take into account some of the very influential factors which strongly effects the sales, creating unknown pulse periods. This causes the inventory to either come short of the market demand , resulting in losing the existing customers to competitors or exceeding the market demand, which may result in over stocking the inventory. Both of which leads to loss.

By using sophisticated models which could correctly predict the sales due to influential factors, Clorox could clearly handle their inventory better and reach the market in a timely manner. Identifying the pulse periods will give the company a competitive edge in creating new marketing strategies to increase market demand. In addition, rolling out inventory at the opportune time assists in customer retention and increases overall sales.