In global settings, with the nature of the business the finished goods tend to be perishable inventory, Starbucks uses a P-system and a EOQ system for inventory management on a store level. This system helps the company reduce unnecessary waste and shrinkage within their inventory. The inventory is tracked by computer programming that is attached to the point of sale registers and through the closed network online ordering with Bartlett Deliveries, the delivery company for stores. This program is called Inventory Management Systems (IMS).
Starbucks does its shipping and ordering in two ways. The first is for the retail of the store using the P-system. This order is placed every seven days with a three day lead time. Various pars are set for the different SKUs throughout the store. Over stock for the entire inventory is set at 15% to ensure enough retail for customers. The second order is done on a daily basis using EOQ. This order has a two day lead time. This order is placed for all the materials, for example milk, espresso, and cups, that are needed to make drinks as well as the short life pastries. Sales for Starbucks generally have constant demand patterned with the days of the week. Only on rare occasions does the demand vary. This coincides with the changing of the seasons and school breaks.
In national settings , PC Quarter a sister company of PerfectByte, one of the leading retailers of computer products in Metro Manila has also discovered problems regarding their inventories ang sales. Their main problem is tracking inventory vis-a-vis daily sales. Company management aldo wants to view branch daily . Quantum X developed a sales and inventory system that is customized to the need of computer retailers like PC Quarter. The system tracks purchasing , daily sales, inter-branch sales, returned merchandise, pull-out, and expenses. Quantum X incorporated features like diskette reports asa well as remote dial up support that allows management to view...
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