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Inventory management at different types of organizations

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How would inventory be managed differently at a coffee shop as compared to a clothes retailer? Provide examples.

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Solution Preview

There are major differences in the two businesses:

1. A coffee shop must produce the product they sell. A retailer buys a finished product and resells it.
2. A coffee shop has to deal with a perishable product in a much closer time frame than a retailer.

Similarities in the two businesses:

1. If a coffee shop sells prepackaged coffee which they had purchased, then they are more like a clothing retailer for that portion of their business.
2. Both must account for inventory and cost of goods sold. That includes selection of a method, ...

Solution Summary

This solution compares and contrasts inventory management at a coffee shop vs. at a clothes retailer.

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