“…While other measures can be used to assess buyer performance (such as sales revenues, inventory turnover, etc. ), GMROI is often preferred in retailing because it is easy to compute, its components are readily available to all retailers, and more importantly, it measures how profitably business assets have been deployed, which is consistent with corporate ROI goals (Fairhurst and Fiorito, 1990;Bates, 1979;McGinnis et al, 1984). Moreover, the measure is sensitive to buyer forecasting errors, which may lead to products being liquidated at clearance prices because too much product was bought or it was offered at too high a price, or sales lost due to stockouts because not enough product was bought or it was offered at too low a price.…”