Qrb-501 Week 2 Team Assignment

2041 Words Feb 21st, 2011 9 Pages
RUNNING HEAD: INVENTORY SYSTEMS

Inventory Systems Summary
University of Phoenix

QRB/501

Mike Jay

January 19, 2011

Abstract

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.

Inventory System Summary The purpose of this group assignment is to collaborate as a team to compare
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Some of the disadvantages are: limiting the vendors may limit the variety of products, relinquishing inventory control over to vendors and distributors may negatively impact their customer satisfaction, and the customers may decide to deal with supplier directly which could put Best Buy at risk of loosing their business. Inventory levels over the past 4 years have remained on an increasingly consistent track as their revenue has risen. According to Best Buy (2010), this rise in revenue and assets is partly due to the fact that they enter new markets and open new stores across the world. The latest opportunities that they have come across include new stores in Europe and other areas overseas. This is new territory for Best Buy but has been a successful venture based on their flexibility with their inventory systems that they have in place. The following table presents the last five year financial highlights according to the Financial Statements and Supplementary Data of Annual Report on Form 10-K. (Investor Relations, 2010) Five-Year Financial Highlights
Dollar in millions, except per share amounts
|Fiscal Year | |Revenue |$49,694 |$45,015 |$40,023 |$35,934 |$30,848 | |Operating

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