Inventory Control at Wheeled Coach Inc.

Evaluate the role their inventory plays in the company’s performance, operational efficiency, and customer satisfaction.

I don’t have an issue discontinuing the practice of doing monthly physical counts on 100% of the inventory and going to a random, cycle count procedure where small numbers of items are counting over time with a goal of cycling through the inventory quarterly. I would request that the managers provide documentation to Bill of the items counted, even if it doesn’t result in an inventory adjustment. This can be done in a quick email identifying the items counted each week and the results of those counts. The purpose would be to document the cycle count process as part of our internal control of inventory. Much like we do on the upholstery side, Bill could supply a summary of the items counted in a given time period and the results of those

The FASB ASC 330 Inventory provides primary authoritative guidance for the accounting for inventory. The predecessor literature is Accounting Research Bulletins (ARB) No.43 Chapter 4, paragraph 4 (Issued June, 1953) and Statement of Financial Accounting Standard (FAS) NO.151 Inventory cost- an amendment of ARB No.43, Chapter 4 (Issued November, 2004).

This provides an indication of which items and what quantities to carry in the future.” (Apollo, 2011) This is another area of opportunity to establish a strong inventory system to be able to track items sold and being able to forecast better. Kudler strives to deliver 95% inventory to its customers and in order to do that the strong inventory system must be established.

Air express companies place many small packages into specially designed cylinders that conform to the

Office Depot uses multiple inventory strategies to order products. 90% to 95% of goods are ordered through automatic replenishment, manual replenishment, pull replenishment, and global sourcing are also used depending on channel, volume, velocity and cost. (Office Depot, 2015). The accuracy of the inventory from both a DC and store perspective is critical to the organizations success. Heizer and Render (2014) state that record accuracy is a prerequisite to inventory management, production scheduling, and sales. Accuracy is maintained by either periodic or perpetual systems (p.479). In Office Depot, the stores are required to cycle-count technology items such as laptops, desktops computers, and tablets five days a week. Discrepancies are entered in the system and bounced off the local DC’s on-hand inventory discrepancies. Office Depot is a “blind receive” organization meaning the stores receive pallets of products and simply unwrap and put them away. The only way a store knows if a product is missing is through the cycle-count program. This system was put into place to speed up the receiving process and eliminate unnecessary steps once the product was received at the store level. Office Depot conducts a full physical inventory once a year through a third party and trues up the inventory shrink at this time.

As three of America's leading retailers, Home Depot, Nordstrom, and Cold Water Creek, are responsible for over $80 billion in annual sales. Retail industry analysts look for commonalities in inventory management reporting in order to track company's ability to move inventory and maximize pricing strategies and avoid having to discount obsolescent inventory thus affecting profit. Through analysis of a company's inventory management ratio, outside investors and inside management can track the number of times each year a company turns its inventory. Industries such as retail are extremely sensitive to inventory management as many retail products have short shelf lives due to cyclical inventory and technological advances.

Kudler Fine FoodsUniversity of PhoenixSmith Systems Consulting (SSC) has been contracted by Kudler Fine Foods to develop a frequent shopper program. Kudler Fine Food's goal with the frequent shopper program is to develop customer loyalty and penetrate new market shoppers while tracking their behavior. Smith Systems Consulting has been able to design, host, develop, maintain, support and program systems development for their clients since 1984. Smith Systems Consulting employs over 350 employees and has generated over $45 million in revenue. Smith Systems Consulting was contracted to develop a frequent shopper program by developing a hardware platform, network connections, software development tools, database information, user interfaces,

35. What method does it use to value Inventory? – Inventories are stated at the lower of cost or market, with cost determined on an average-cost basis.

To determine the inventory account, we subtracted total assets from total liabilities and equity for each month. The resulting figure gives us the amount of inventory. We plugged in each month's inventory to balance the total assets and liabilities sections.

The inventory and production departments also have issues. Currently, inventory is done by the receiving area supervisor confirming the shipping documents against incoming orders by hand. This allows for human error and is not a quick or efficient way to do inventory. The same process is used when production takes items from inventory. The inventory system is only updated once daily when new raw materials arrive and then again once daily from production when the raw material is used. The lack of tracking and checking in a timely manner leaves the organization’s processes at a higher risk of failure. The inventory system does not currently communicate with the sales or with the Finance and Accounting applications. This may lead to a

|3. Testing the clerical accuracy of the company’s physical |3. Match the quantities at different locations with a computer |

“The Company’s inventories are reported at the lower of cost or market. Inventory costs include material, conversion costs, freight and duties and are determined by the first-in, first-out method. The Company reserves for slow-moving and aged inventory based on historical experience, current product demand and expected future demand. A decrease in product demand due to changing customer tastes, buying patterns or increased competition could impact Coach’s evaluation of its slow-moving and aged inventory and additional

Appendix C is the quarterly inventory table I conduct in Daan, which is prepared by physically inspection and comparison with financial record. This task requires me have sufficient knowledge about the flow of inventory, in order to obtain the accurate number of goods.

The data can easily loss because they only use a logbook to record their inventory data. With the system, it will help more on the security of the data. Inventory loss hard to detect because admin need to review one by one page in the logbook, but with the system developed, it may help the admin to detect the inventory in and out from the