Once Inventory Is Stratified as a, B, C, D, X and Y Items, the Classification Aids in Making Several Business Decisions. How Does Inventory Stratification Influence

Data, the data that is currently being used in the forecasting is outdated. Using data from 2006 does not translate the current needs of customer demand. Using updated data should help with making correct estimates how much inventory should be kept on hand without causing lose in revenue.

The retailers had to estimate their customers’ demands well in advance of the selling season and place bulk orders for each season’s inventory. This involved high risk for the retailers as over-estimation would lead to unsold stock; whereas under-estimation led to stock outs and loss of potential sales.

To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.

The Customer relationship, Order fulfillment, and Supplier relationship processes need to be analyzed from the perspective of process structure, process improvement, layout, and capacity.

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

Inventory segmentation represents a substantial challenge due to the hardy product selection requirements for Internet retailers. Determining the products that must be handle in one 's own distribution centers, versus wholesaler distribution centers and producers places has an impact on cost service structure of Internet retailers (Chiles & Dau, 2005).

Schenck, J., McInerney, J. 1998. Applying vendor-managed inventory to the apparel industry. Automat. I.D. News 14(6) 36-38

This set of data belongs to the online retailer industry. The most significant categories that helped with our decision was the low inventory for a retail business and the relatively high inventory turnover. The reasoning behind the high inventory turnover was because the goods were allowed to sit in storage until sold because of the online aspect of the business. We were also able

Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)

worldwide to serve the customers and is famous for the variety of products that it provides in the

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.

4.Given the 4 areas of the company, choose some supply chain processes and suggest appropriate performance metrics.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Axsäter, 2006). In this area only large scale multi-national companies have set a number of

A process is regarded as “the structured design of a system whose aim is to establish suitable indicators to measure the performance of the process” (Climent, Mula and Hernandez 2009 p. 202). The overall performance of the operation is impacted by how well the processes are designed. As such it is imperative that they are designed as effectively as possible to achieve optimal results. A poorly designed process results in poor performance as can be seen with the current Myer wholesale ordering and delivering process.