Premium Essay

The Heart of Retail

In: Business and Management

Submitted By ctbsmith7137
Words 1848
Pages 8
he Heart of Retail: Inventory Management

For

XYZ Company

July 15, 2010

According to Business Dictionary.com, the purpose of inventory management is to administer flawless services to their customers at minimum cost. It is further defined as steps that are taken to maintain the ideal amount of each item that is in inventory. Inventory management can also contribute to the success or failure of a business. When inventory is mismanaged, some of the following can occur:
 The amount of items in stock will be more than the number of items that you sell;
 There will be delays in your delivery system;
 Your production will be interrupted;
 An increase in your inventory management costs; and
 Incorrect inventory totals (Rinatha, 2006). When inventory is managed correctly, the following activities will be possible to complete and your business will be more productive.
 Asset protection
 Assign locations to keep your overstock
 Keep track of all items leaving your warehouse
 Complete all paperwork in a prudent manner
 Make sure that the balance of all stock items is correct and accurate (Schreibfeder, 1997). According to Datamonitor (2009) XYZ Company was founded in 1948 and opened its first store in 1957. It owns a total of 1,559 stores of which 846 are located in the United States and 713 are located internationally in 33 countries. They own juvenile stores, side-by-side (toy and baby stores combined), and superstores as well. Because of market trends and customer shopping habits they also sell merchandise online and have a pregnancy website online as well. XYZ Company uses an inventory system called Centralized Sales Improvement System (CSIS) . It provides up-to-the-minute information regarding sales; items that are on the floor, and specific information for an item. Some of the benefits of CSIS are:
 Sales

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