Morrison Inventory Management
The purpose of this report is to gain an insight on the management accounting practices of the company. For the purpose of this report, Morrison is being selected. This report will analyse the company’s products, its competitors and the management accounting practices that the company is practising. The report will further include the suggestions and recommendations for Walt Mart about the management accounting practices of the company.
Overview of Morrison
Morrison founded by William Morrison in 1899, head quartered in Bradford, Yorkshire, is United Kingdom based retailer. The company operates in the chain of supermarkets and is the fourth largest chain of supermarkets. According to the reports of 2014, the company was at fourth position …show more content…
The basic objective of inventory management is to provide the company with uninterrupted sales, production and customer service by incurring minimum cost. The inventory represents large portion of current asset of the company and also represent the volume of investment that is tied up in in form of raw material or finished products. Inventory management helps the managers to keep track of the inventory and also helps in reducing cost to the minimum level. Good inventory management helps the business to increase and maintain the profit margins. Inventory management can help in increasing the efficiency of the business in its operations. Lack of priorities, inaccurate tracking system and too much inventory has the potential to disrupt the operation of business and can also reduce profit margin of the business (Michalski, …show more content…
Proper inventory management can help Morrison to estimate the amount of inventory that is currently needed by the business. It can also help Morrison to make its ware house more organised. Good inventory management system can also benefit the business by saving time and money of the business. By keeping the track of the in hand and ordered inventory, the business remains updated of current inflow and outflow of inventory. Good inventory management strategy can also help the company in increasing productivity and efficiency of business. An inventory management device reduces the manual count process and enables the business to save time and focus on other important areas of business (Michalski,
Overview of Morrison
Morrison founded by William Morrison in 1899, head quartered in Bradford, Yorkshire, is United Kingdom based retailer. The company operates in the chain of supermarkets and is the fourth largest chain of supermarkets. According to the reports of 2014, the company was at fourth position …show more content…
The basic objective of inventory management is to provide the company with uninterrupted sales, production and customer service by incurring minimum cost. The inventory represents large portion of current asset of the company and also represent the volume of investment that is tied up in in form of raw material or finished products. Inventory management helps the managers to keep track of the inventory and also helps in reducing cost to the minimum level. Good inventory management helps the business to increase and maintain the profit margins. Inventory management can help in increasing the efficiency of the business in its operations. Lack of priorities, inaccurate tracking system and too much inventory has the potential to disrupt the operation of business and can also reduce profit margin of the business (Michalski, …show more content…
Proper inventory management can help Morrison to estimate the amount of inventory that is currently needed by the business. It can also help Morrison to make its ware house more organised. Good inventory management system can also benefit the business by saving time and money of the business. By keeping the track of the in hand and ordered inventory, the business remains updated of current inflow and outflow of inventory. Good inventory management strategy can also help the company in increasing productivity and efficiency of business. An inventory management device reduces the manual count process and enables the business to save time and focus on other important areas of business (Michalski,