Inventory Turnover

The topic has been chosen for research is to critically evaluate the inventory management systems of retail industry in UK. This industry is continuously growing up with pleasure of customers even the fluctuation in customer choices. Moreover, this sector has been hugely impacted from 2008 to 2010 by the economic crisis, when customer did not have enough money to spend. As a result some retail businesses have incurred a loss and shut down their operation. Though some of the retailer took the challenge and continued their business to see the future success. But inaccuracy of stock count leads to poor availability in store level stock. Moreover employees’ inadequate level of skills and improper management clue to poor control of inventory management. As a result decrease the customer satisfactions therefore fall in revenues and ultimately collapse in profitability level. (Lussier, 2012)

|Inventory turnover |180,000/5000 |36 |N/A |Inventory turnover is calculated to determine how quickly the inventory is used based on the services rendered.|

Kudler Fine Foods is a company that deals with bakery and pastries products, along with providing produce, meats, seafood, condiments, cheese, specialty dairy products, and they also package foods if necessary throughout their many locations within California. Kudler Fine Foods ultimate goal is very similar to all businesses alike, which is to have an excess amount of income over expenditure. According to what is stated on the Intranet for Kudler Fine Foods, their drive as a business, is to always maintain being the best in the business when comes to servicing customers with top high end products (goods and even services produced by Kudler Fine Foods). KFF will also have to understand what the needs of customers

“In an age of increasing specialization, it is rare for one person to be knowledgeable in all aspects of a complex task” (Thompson, 2015, p. 88). In this case, the first step was to understand our incoming demand. For this, I relied on information technology to generate numerous reports as well as the expertise of our sales team. It was at that point that the data was analyzed in conjunction with an inventory specialist. After we had the knowledge of what current product to inventory, we then needed to establish a set of guidelines of how to qualify products in the future. Inventory control management processes were instituted as well as a supply an auditing system. These steps included information from organizational members from our manufacturing group, planning department, and procurement department. Finally, we needed to understand and facilitate the storage and shipping of the product. We enlisted the help of our warehouse employees as well as our transportation department. This type of project included various levels of the organization and required a tremendous amount of communication. The project workload was enormous and also had a substantial financial investment associated with it. Instrumental in the project’s success was the team’s cohesion, diversity, and strategies deployed

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.

The three questions listed above identified some key areas of opportunity for Kudler Fine Foods. It is obvious that Kudler Fine Foods needs to conduct further research in the areas of product selection, value of products, and customer service. Kudler’s current marketing strategy identified programs to focus on high end products and services through specialty cooking clinics and a high-end frequent shopper program. With the results of the 2008 survey it would be a waste of resources to implement these marketing initiatives. Through survey responses it seems that Kudler customers would much rather see a wider variety of products in the stores with better pricing. Kudler customers are looking for more selection and more value. One of the marketing initiatives did include customer training which was also identified by the survey. The Kudler customers stated that the employees were not very courteous, which will keep customers away from the stores. No matter what products your store has, if the customer service is poor, you will not be successful.

In regards to inventory turnover in 2009, CVS experienced a favorable amount of inventory on hand compared to cost of goods sold. When comparing this result to 2011 it climbed to 10.66, which improves the company’s regulation of managing inventory. From 2009 to 2010 there was an improvement

One of the five measurements of a financial ratio analysis is asset management, also known as turnover. Dess, et al. (2012) evaluates turnover by calculating the cost of goods sold over inventory (p. 497). Inventory turnover evaluates how a company can flip its product within a given time (Adkins, n.d.). The higher the turnover, the more “light inventory” a company has as Adkins (n.d.) explained. Turning over inventory, especially in the shoe retail industry, is imperative to keeping up with the competition and making a profit. Inventory turnover allows for the best price stability that, in turn, offers a better profit margin from selling at competitive prices. Customers want to see the newest arrivals, not the old products that everyone else has. For Footlocker and Finish Line, turning over the old with the new inventory can be costly and will jeopardize their clientele. Therefore, in comparing Finish Line to Foot Locker (Figure 3), Finish Line turns over inventory faster while it makes more use of its freed cash from its profit margin for other opportunities.

Two models of inventory can be examined in the case of Boston Beer Company. Because there are a large variety of offerings available, different approaches can be viewed. With their many seasonal offerings, in some cases only available for 2-3 months, or limited releases with a possible one time production run, we can examine the “newsvendor

Kudler Fine Foods is a rapidly growing retail company that began in 1998 that uses a Retail Enterprise Management System (REMS) to track customers, inventory, sales and employees. Being that the majority of Kudler’s inventory is perishable its inventory must be consistently tracked. The following brief will evaluate data tables from an accounting perspective, and provide recommendations for improvements. In addition a pivot table will be created using Kudler’s inventory data that will assist the company’s management improve decision making.

Based on the information provided in the above indicated inventory analysis the financial controller and all interested parties within management will be better able to become informed regarding all indicated irregularities, material misstatements or inventory shrinkage . Furthermore, this will assist the management team in understanding and more effectively managing

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering

Tasks:  What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization  Identify the functions and forms of inventory  What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation)  Provide training programs for current and new hiring employees 1

Inventory turnover for Company A (3.08x) is higher than Company B (0.93x), that means inventories are sold and replaced faster than Company B. Company A has higher turnover because those institutions, especially hospitals “consume” health products faster and more. Lastly its show Company A has deep pipeline of its ethical pharmaceuticals.