Retail Supply Chain's Kpis

Abstract —There are some complex and compelling challenges that global manufacturing industries should face, which includes price fluctuation, supply-chain inefficiencies and increasing customer expectations. In order to meet the demand of this economic environment, manufacturers need to find innovative, smarter ways to face those challenges. Thus, the efficient inventory management becomes urgent to manufacturers and it could help improve profitability and increase customer satisfaction. This paper aims to talk about what inventory management is and its importance, what problems inventory management might have and how to improve inventory management efficiency.

Although inventory plays a major role in the supply chain, there are also some inconveniences. Inventory is very costly and uses space that could be used in a more profitable way.

(i.e. products that they get to order only once because of long supplier lead times). First they determine a forecast for an item and then they have a process for converting that forecast into an order quantity.

For instance (ceteris paribus), if the transportation of the HP products were air shipped, and the lead time passed from four and a half weeks to three days, logically stock levels would decrease. The same would happen if we reduce the time between orders or the level of satisfaction that we want to assurance to our customers.

Cost of inventory is determined using the average method; inventory is stated at the lower of cost or market. +pB13

Lead time is the amount of time it takes to produce a product and have it available for end user consumption (Vermorel 2011). This metric will be very telling as it measures the capability of the supply chain to meet the demand from the consumer. By keeping a reasonable lead time the company will avoid outs and have an accurate measurement about their total supply chain capabilities.

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).

B. b. Perfect order measure/fill rate: This method measures the error-free rate of each step in the supply chain. Error occurs when the customer has an unsatisfactory experience with the power tool they purchased because of errors and delays in the supply chain. The complexities of an extended supply chain make the odds against fulfilling a perfect order challenging.

However, measuring order fill rates will not by itself diagnose operational problems. For example, a workstation manufacturer fills orders of multiple products that come from different divisions, and customers demand to receive each order in a single shipment. The manufacturer has merging centres where products are consolidated before they are shipped out. Overall order fill rate is an appropriate performance measure, but measuring it will not help the firm identify which divisions are slowing down order completion.

Customer understands that all orders are subject to +/- 10% over/under shipment unless specifically agreed to otherwise before the order is accepted.

St. Bonaventure University Inventory Management Nordstrom Christian Artuso Research Paper November 17, 2017  Abstract This paper looks to go in-depth looking at inventory management as a whole, how it works and how it can benefit a company. Due to their seemingly revolutionary change in recent years, Nordstrom will be the example used to examine the importance of proper inventory management. After probing the history and gaining an understanding of the company, this research paper will be able to compare and contrast Nordstrom to its competitors in the retail industry and discuss how the way that the company deals with inventory makes it able to compete and survive.

Merchandising Inventory- These are items bought by the companies suppliers in order to keep stock.

As we all know, the retail industry is very crucial and is highly competitive. As this company

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

2. Shipping Cost Savings = inventory carrying cost = item value X 0.30 X 6 days