Businesses and Inventory Systems
Inventory systems are tracking systems designed for companies to maintain an accurate accountability of products in stock or on hand. Each time items are added or removed from inventory items on hand either decrease or increase in number.
This paper will review inventory systems within Starbucks, Wal- Mart, Dell, Arby’s, and Starbucks. The paper will also provide information regarding the success of the inventory systems and if the companies are happy with the current systems.
Businesses and Inventory Systems
Dell is a leading global software company that manufactures desktop computers, notebook computers, network servers, ...view middle of the document...
This form of inventory management provides Wal-Mart with an efficient, effective way to avoid overstocking and reports those items selling slowly. This allows automatic reordering and better coordination. The inventory system has advantages that benefits Wal-Mart because reports indicates the profit making items. Based on trend analysis Wal-Mart disburses less for inventory maintenance compared to some of the major competitors. Using its sophisticated computer-based warehouses, the turnaround time for items to arrive and leave without sitting on shelves are increasingly high. Wal-Mart is content with its current inventory system. They invest large amounts of money into the system that other large retail chains currently use. They continue to enhance the inventory system to meet technological changes that enable them to remain a financial giant.
As with any system there are challenges with the radio-frequency system. Problems arise with metal because metal reflect radio-frequency and liquid items absorbing them. These challenges limit the use of technology. Wal-Mart has the capability to maintain the competitive edge with its highly sophisticated and technological inventory system (Bagh, 2010).
Arby’s is a fast food restaurant founded July1964 by the Raffel brothers of Boardman, Ohio ("Arby’s," 2012, para. 1). Strict guidelines are in place on inventory storage, cooking, and hold times. The company uses the Point of Sales (POS) system to monitor inventory and sales. The advantage of this system is the precise control the store has over inventory control. The system helps management know the amount of food to prepare daily. Disadvantages are the time it takes management to run hourly reports during the day and adjust cook totals on beef. Each hour the beef proficiencies must be complete to ensure the store is not losing profit. The system is not flawless but the organization has been using it since 1990. The system helps ensure that customers receive quality products and waste is minimal. Arby’s is content with the current inventory system.
Starbucks is one of the leading companies that purchases and roast coffee products to sell to the public. As stated by Royalty, M. (2010) “Starbucks does its shipping and ordering in two ways. These systems are in place to help reduce waste and keep the inventory to the lowest. The first is for retail of the store using the P-System. The order is placed every seven days with a three day lead.” She also goes on to state “Over stock for the entire store is set at 15% to ensure enough retail for customers.” Royalty, M., (2010) Starbucks uses yet another inventory system called EOQ, to complete second orders daily. These orders are for materials used every day in the store, e.g., milk, espresso, and cups. Starbucks carry the same items most of the seasons and...