Purchase Solution

Best Buy and Improvement of Inventory Management

Not what you're looking for?

Ask Custom Question

The following link leads to an article from The Wall Street Journal.
https://www.wsj.com/articles/retailers-rethink-inventory-strategies-1467062280

1. Inventory Management represents the backbone of Retailer. What is Home Depot Strategy to grow sales while maintaining the same level of inventory?
2. What's the role of Technology in better managing inventory? Provide three concrete points.
3. In your opinion, what is the role of JIT and Lean in Inventory Management?

Purchase this Solution
Solution Summary

This posting has described how Best Buy has improved its inventory management.

Solution Preview

Home Depot's strategy to grow sales while maintaining the same level of inventory is to improve its physical supply chain by developing a steadier flow of deliveries from suppliers to its 18 sorting centers. This means not receiving large quantities of inventory at the same time but staggering deliveries over a period of time. The example given by Home Depot is that it does not want to receive five trucks twice a week but has suppliers drive in two trucks five days a week. Home Depot is saving money by synchronizing inventory flow to increase its operating margin(a). A higher frequency of deliveries also increases its in-stock levels while not allowing its inventory to grow. Home Depot also saves labor and money by placing fresh shipments to lower shelves so that the use of forklifts and ladders is reduced for placing and getting back ...

Solution provided by:
Kasim Johar, MBA
Education
  • MBA, Indian Institute of Social Welfare and Business Management
  • BSc, University of Calcutta
Recent Feedback
  • "awesome"
  • "Appreciate the help. This is Awesome"
  • "Thanks, awesome notes!!! "
  • "AWESOME!!!!!!!!"
  • "Great notes, I appreciate the help"
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • Home Depot and Inventory management.

    Retailers that are successful have fine-tuned this process so that they are able to buy at the best price, with the most efficiency, and equally important, to only buy what they need when they need it.

  • Analyze, Discuss and Justify Whether Stock is a Good Buy

    It has increased two percent from 2008 to 2009, showing that management has showed a great deal of improvement and that the increase in profitability was not only due to other environmental factors, but also to the management of the company.

  • Discussing Quality Management and Continuous Improvement

    Companies such a Fleetwood RV's, Toyota and Harley-Davison have seen a tremendous improvement of their products with the implementation of JIT inventory programs .The purpose of the JIT method is to reduce costs and time, allowing inventory purchased

  • Individual contributions : cross-functional team

    The supply management personnel will use the details of purchases and sales to give the current level of inventory.

  • Just In Time (JIT)

    Companies such a Fleetwood RV's, Toyota and Harley-Davison have seen a tremendous improvement of their products with the implementation of just-in-time inventory programs .The purpose of the JIT method is to reduce cost and time allowing inventory purchased

  • Quality Improvement Strategy

    For example we have reduced the inventory and improve the inventory turnover with the help of benchmarking.

  • Operations Management Simulations

    Inventory management: At the inception, the concepts and analytical tools that I learnt and was able to use in the operations improvement plan were helpful in the use of simple metrics to determine the performance of my investment in stock inventory

  • Organizational behavior case analysis

    Achievement and stimulation are two of Schwartz's inventory values most prevalent within this organization's management culture.

  • Operations Management: Operating Expense & Inventory Expense

    It is calculated by dividing cost of sales by the average inventory level: Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory A higher ratio indicates efficient management of inventory.

View More Related Solutions