Taking a Look at Inventory Management

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

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)

Tying up too much capital in products that are not in demand could be a fatal mistake for struggling small businesses. Moreover, Inventory management can mean the difference between success and failure for some companies. According to the New York Times article, Macy’s was able to post a profit last quarter thanks in large part to improvements it made to its inventory management system. In spite of the unstable economic conditions and the huge competition in the market such as J.C Penny and Kohl’s, Macy’s was able to get market share and raise their profit. In this paper, I will be briefly discussing the inventory management history at Macy’s and how the changes in inventory management helped the

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,

Inventory is the total quantity of materials or goods contained in a factory or store at any given time. The owners of store need to be familiar with or know the exact figure of items on their storage areas and shelves in order to place losses or orders. Factory managers should know how the number of units of their goods that are available for client orders. The word inventory can be used for both the overall sum of goods and the work of summing them. In the case of racket science retailing, the company usually takes a record of its supplies on a regular manner in order to keep away from running out of common items. To some extent, the company takes inventory to make sure that the number of products ordered matches the real number of products or items counted physically. Normally, in cost accounting, averages or shortages after an inventory indicates a problem with theft (mostly referred to as 'shrinkage' in retails) or inaccurate accounting practices. Rocket science retailing also takes a record of stock after every trading

Just-in-Time is an inventory management philosophy that aims to reduce inventories by implementing systems and processes to supply a product or service exactly when it is needed, and how it is needed in the production process. The concept of JIT is widely accepted today by many American manufacturing companies, and it is a means of controlling costs through striving to maintain lean inventories—in fact, the concept of JIT was introduced in the early 1980’s to the U.S. as a concept know as “zero inventories”. This inventory control concept involves close relationships with vendors or suppliers, who are able to provide components of the product direct to the work-in-process area, in a “pull” type fashion, whereby the components are

Inventories has financial significance because the goods awaiting for sale can add or take away from the firm’s equity.

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

But let’s take a look closely at what is inventory in certain industries. Inventory in the agricultural industry is the growing crops, developing animals held for sale, harvested crops, livestock held for sale, and secondary products like calves from dairy herds and wool from sheep. In the airline industry, the inventory is used for own consumption which sets it apart from the original definition of inventory. Their inventory curtails mainly of spare parts and materials and supplies to be used in the operation of the airline. For contractors that are into construction, inventory is the small tools that are used in the construction activities. For software, the inventory is the tools and technological products associated with the production of computer software. These are a few scenarios of what is inventory in some industries. Let’s see now some issues associated with inventory, the historical aspects pertaining to U.S. GAAP and IFRS, revenue recognition and measurement rules, presentation and disclosures, and any upcoming developments that affect inventory.

Description. Perpetual Inventory Method (PIM) is known to be used by many financial institutions. PIM system maintains an up-to-date record of accurate level of goods at hands by ensuring that stocks are accounted for at all times (Dey-Chowdury, 2008). The process includes details of all recording purchase and sales receipts, and issues and

The approach that I recommend will be an improvement to Riordan Manufacturing is the system often called cloud computing. Cloud computing will offer many advantages to Riordan, one of the essential advantages is that it's going to pretty much permit entry to the business each time, from any place, by way of any staff member.

Inventory management is part of the warehouse management and both of them are part of a bigger entity which is the supply chain. The objective of supply chain is to minimize annual system wide costs and maximizing the service level. To reach the goal or objective of supply chain, Inventory and warehouse management have the following objectives that will help increase return on inventory (ROI) and return on assets (ROA):

T.A. Spedding University of Greenwich, Chatham Maritime, Kent, UK K.K. Chan Nanyang Technological University, Singapore

"Inventory" to many business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register.

For any business to achieve financial success, its inventory has to be properly managed. Through this the business gets to evaluate its needs for a specific good to fill its inventory with enough stock. The business therefore improves its sales outcome or profitability without spending too much in terms of financial and physical resources. To optimize inventory levels, businesses must assess their inventory. Inventory assessment involves evaluating assets and financial resources to ascertain if they can sustain the acquisition of goods and supplies through availability of funds. Businesses must also engage in inventory forecasting in order to optimize inventory levels (Harrison, 1997).