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Tip Top Markets

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Submitted By akica
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Since we do not have enough information about the store operations, we made some assumptions about what could be the possible causes of the very often stock outs. The categories of causes are: supplier, facility, systems, processes, capital, and people. Supplier- The reason for stock outs could be connected to the supplier such as shortage from the supplier due to low capacity, or poor communication. Also, Tip Top markets could be too dependent on one or a very few suppliers who can’t deliver. There could also be unexpected interruptions that made the supplier unable to deliver. Facility- There are several facts about the facility that could be causing often stock outs. There could be low storage space in the facility making it difficult to store enough inventory. Excessive backroom inventory, poorly organized space, and low visibility could cause the stock outs because employees are unable to see/find the products. Systems- Outdated systems, no systems that collect data or do it inefficiently can also cause the stock outs. Poor inventory systems that give the managers inaccurate information can cause phantom inventories can be the cause of out of stock products as well. Processes- Lack of integration of sales and marketing into operations, and no communication and collaboration between managers can be the cause of stock outs. Poor process design, replenishment, and forecasting of demand are some of the processes which could significantly contribute to stock outs if not done properly. Capital- Capital is crucial when it comes to getting enough supplies, and if the cash flow is not managed properly, shortages of working capital and supplies can occur. Capital is important when buying new tools that could improve the supply, as well as bring in more employees and improve their training. People- Incompetent managers who don’t make the responsibilities clear can cause

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