Inventory management

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Inventory management

  1. 1. Overview 1. Social/Ethical Issue 2. Background 3. History 4. Do Inventory Systems Really Work?
  2. 2. 1. Social/Ethical Issues Security: Anti-theft, RFID
  3. 3. 2. Background One of histories greatest logistical triumphs  Having an effective, efficient inventory control system is imperative to all retailers
  4. 4. Target
  5. 5. Lowe’s
  6. 6. Best Buy
  7. 7. Background Stock tens of thousands of items allover the world Helps retailers, such as Walmart, maintain “everyday low prices”
  8. 8. Factors Quicker production cycles Proliferation of products Multi-national product contracts Makes inventory management a necessity!
  9. 9. Abilities Track sales and available inventory Communicate with suppliers (very quickly) Tell storeowners when to reorder and how much to purchase
  10. 10. Background Pull together several technologies into one cohesive approach
  11. 11. 3. History Stock tracking
  12. 12. The “Good” Old Days Write down purchases Looked at how many units were gone at the end of the day Tried to forecast future needs…. INDUSTRIAL REVOLUTION 
  13. 13. History Efficiency and mass production + Improved customer service = the main goals of business A team at Harvard designs first modern check-out system  Able to generate billing records and manage inventory  Very expensive  Version still used today in some stores
  14. 14. Background Still needed a better system Creation of modern bar-coding system  Used ultraviolet light-sensitive ink and reader to mark items for sale  Lacked computing power needed to make it work
  15. 15. Background Lasers and Barcodes:  Allowed smaller, faster and cheaper readers or scanners  Modern Barcode (UPC)  ^ in computing power = ^ UPC improvement
  16. 16. Background Advances in computer and software technology = better/improved inventory systems RFID (Radio Frequency Identification)  Superior to barcodes. Why?  Reads information from products from several yards away  Ability to encode more data  Anti-theft
  17. 17. Do They Really Work? Essentially, the systems work like this:
  18. 18.  1. Barcodes or RFIDs tell scanners which items consumers are buying
  19. 19.  2. Scanners transmit the information to computers by reading the bar codes and sending that information to the software
  20. 20.  3. Software interprets the numbers from the bar code and matches them to the type of merchandise it is
  21. 21.  4. Merchants are able to track sales and inventory
  22. 22. But, Do They Really Work? Yes Benefits of modern inventory management systems:  Great Advantages for any organization that manages a supply chain for consumable items  Allow merchants to track sales  Merchants are able to buy a certain amount of “x” good based on inventory management predictions and records
  23. 23. Electronic Data Interchange Used to communicate its needs for additional merchandise to a vendor Process of sending and receiving data between two parties
  24. 24. Ultimately…. It comes down to the merchant, the system provides good information to support decisions made by the merchants Allows merchants such as….
  25. 25. KHARI
  26. 26. References Keifer and Khari, for allowing me to use his picture Web/Google: All images Howstuffworks.com, for information and some pics  http://money.howstuffworks.com/how-inventory- management-systems-work.htm  http://money.howstuffworks.com/how-inventory- management-systems-work1.htm  http://money.howstuffworks.com/how-inventory- management-systems-work2.htm

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