Purchase Solution

Local Retailer Inventory Analysis

Not what you're looking for?

Ask Custom Question

Consider a local retailer and analyze its inventory policy (as best you can).

Make some determination of the retailer's policy on inventory levels, stock-outs, backorders, and safety stock.

Provide reasons why you chose those policies for that particular retailer.

Purchase this Solution
Solution Summary

This solution considers a local retailer and analyzes its' inventory policy based on inventory levels, stock outs, back orders, and safety stock. It includes a link and examples.

Solution Preview

The local retailer I have chosen is our corner grocery store. They manage their inventory based on the type of product, and the supplier. A wholesale distributor that delivers once a week supplies most of the store. For these items, inventory is calculated by a computerized system. Monthly inventories are taken to verify stock on hand. Any discrepancies between what should be on hand and what is counted are adjusted. Occasionally there might be a discrepancy of a couple hundred cans of corn, for instance. In these cases the employees research the item. Perhaps an end aisle display was not counted or there was an error in receiving the delivery. The stock on hand is then considered, less the items sold since the last inventory (based on scan data from the front end) plus any deliveries. The build to level is then calculated. Build to levels are based on the number of days between delivery, and the number of days for safety stock. The grocery store usually uses two ...

Solution provided by:
Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
Recent Feedback
  • "Thk u"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
Purchase this Solution
Free BrainMass Quizzes
Lean your Process

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

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

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.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Inventory management at different types of organizations

    A clothing retailer can place some reliance on manufacturers to have tested the market for current preferences in clothing, whereas a coffee retailer would probably have to determine local market preferences itself.

  • ICT Strategies: Wholesale & Retail

    ICT systems can create bill of materials for wholesale inventory, perform profit analysis for profit margin, quantities on hand, work orders and create purchase orders for several vendors with a few clicks.

  • Inventory Costing for Trina's Treasure Retailer

    403151 Inventory Costing for Trina's Treasure Retailer 1. Trina's Treasure is a retailer that began operations in 2008. Below is a summary of its 2008 inventory activity.

  • Operations Management and Supply Chains

    Over past few years Walmart has become world's largest and most powerful retailer with highest sales per square foot, inventory turnover, and operating profit of any discount retailer ("Walmart's keys to successful...", n.d).

  • SWOT analysis of Amazon

    It is a fair strategy since one could visit a more local retailer, and pay no costs. However, it is rumoured that shipping costs could be up to $500m, and such a high figure would undoubtedly erode profits.

  • Supply Chain Design for a retailer

    417096 Supply Chain Design for a retailer Following data were collected for a retailer: Cost of goods sold $ 3,500,000 Gross profit $ 700,000 Operating costs $ 500,000 Operating profit $ 200,000 Total inventory

  • Learning about applications of PEST, Porter’s 5 , SWOT

    The company can focus on its marketing strategies, where it can target local people with the help of social media strategies, online website, hoarding and campaigns (Hill & Jones, 2012).

  • Production Management. Sharing demand information.

    Even the retailers save a lot because of lower inventory levels.

  • Supply Chain of JetSet Travel

    STEP 5 The fifth function of the supply chain is to reduce the inventory carrying cost of the retailer.. The one piece of accounting that would aid the manager's decision would the items demanded at specific times for each retailer.

View More Related Solutions