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Control inventory

You have been hired by the CEO of a soon-to-be-opened bookstore to develop procedures to help control inventory. List, describe, and defend three procedures you recommend be implemented to control inventory. As part of your response, be sure to describe any potential costs associated with these procedures.

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Bookstores carry massive quantities of similar-looking inventory. It is extremely easy for a bookstore to accumulate large quantities of worthless inventory if processes and procedures that limit overstock are not implemented and managed regularly. In addition, having insufficient inventory can mean missed sales. A careful balance is critical for maximizing profitability.

In order to control the inventory of this bookstore, I recommend three procedures:

1) Only the Inventory Manager will be able to order books that have not been paid for. Customer service representatives may send email requests to the procurement officer with supporting reasons for why a particular book should be ordered, but cannot order books unless they have collected payment in advance for special order items.

By having customer service reps collect payment in advance for special order items, they assure they will not be inundating the store's inventory with books that may not sell. If an item is a special order, it is likely a slow mover anyway, so you especially do not want to be stuck with it. In addition, by allowing customer service reps to place small orders that are paid for in advance, the ...

Solution Summary

The control inventory is examined for soon-to-be-opened bookstores.