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Inventory Control in Retail

Briefly describe a retailer with which you are familiar and determine the best possible way for this retailer to manage and use its inventory.

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Safeway supermarket uses a variety of methods to manage and use its inventory, depending upon the type of product involved. Since the stores stock staples, baked goods, produce, dairy and other perishables each product category has a different 'best practice'. However, all products are ordered based on a basic formula of a build-to-number (the amount the buyer at headquarters estimates is the right quantity to have on hand) which basically means that less sales results in less on-hand inventory. The build-to-quantity may fluctuate based upon time of the month (the first and fifteenth tend to be heavier shopping days), delivery time, season or price of an item. Product orders are automatically generated at the corporate level, although store managers have the ability to override the system.

Staples, like canned and packaged goods, are ordered directly from the corporate warehouse. This product is on a perpetual order ...

Solution Summary

This solution briefly describes a retailer and determines the best possible way for this retailer to manage and use its inventory.

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