26-02-2013, 03:12 PM
INVENTORY MANAGEMENT
INVENTORY.ppt (Size: 613.5 KB / Downloads: 20)
INTRODUCTION
It is not easy to deal with customer dissatisfaction , especially when customer is a 4-year-old Boy. A petulant toddler demanding the spider man costume for an upcoming party. If he cannot be transformed into spider man, he cannot attend the party. He is trying his best to convince his mother by crying is lungs out and flailing his arms wildly. The mother looks at her son and turns to glare at the apologetic sales executive. In face of such blatant blackmail she has no option but to hop across to the next mall. The store has lost another customer.
To keep pace with such demands retail chain outlets
Like Shoppers stop manage a staggering 3,00,000 SKU at each outlet. Ensuring the availability of each SKU across 21 outlets in the country is a supply chain challenge. That is why SS has four RDC’s at Delhi Mumbai Bangalore & Kolkota. Over four hundred vendors supply the DC’s. SS has to decide as to how much inventory the RDC should carry and how much inventory Stores should carry. They will cannot risk non availability of a product as it will affect their reputation. On the other hand carrying to much inventory at Either Distribution centers or the stores multiplies the Inventory carrying cost and also the problem of obsolescence.