Inventory Control and Management

Inventory Control

• Definition: The process of managing and regulating inventory levels to ensure adequate stock, minimize stockouts, and reduce excess inventory.
• Objectives:
  • Maintain optimal inventory levels
  • Minimize stockouts and overstocking
  • Reduce inventory costs (holding, ordering, and shortage costs)
  • Improve customer satisfaction
• Inventory Control Techniques:
  • Economic Order Quantity (EOQ): Calculates the optimal order quantity to minimize total inventory costs.
  • Just-In-Time (JIT) Inventory System: Orders and receives inventory just in time to meet customer demand, reducing inventory holding costs.
  • ABC Analysis: Classifies inventory into three categories (A, B, and C) based on value and importance, focusing on high-value items.
• Inventory Control Systems:
  • Perpetual Inventory System: Continuously updates inventory levels in real-time.
  • Periodic Inventory System: Updates inventory levels at regular intervals (e.g., monthly).

Store Operations

• Definition: The management of day-to-day store activities to ensure efficient and effective operations.
• Key Store Operations:
  • Visual Merchandising: Creates an appealing store environment to attract customers and promote sales.
  • Store Layout: Organizes store space to facilitate customer flow, product placement, and sales.
  • Employee Management: Trains and motivates sales staff to provide excellent customer service and drive sales.
  • Customer Service: Ensures prompt, friendly, and helpful service to build customer loyalty.
• Store Operations Strategies:
  • Cross-Merchandising: Places complementary products together to increase sales and basket size.
  • Loss Prevention: Implements measures to prevent shoplifting, employee theft, and other forms of inventory shrinkage.
  • Store Maintenance: Regularly maintains store cleanliness, organization, and appearance to create a welcoming atmosphere.

Inventory Control

• Inventory control is the process of managing and regulating inventory levels to ensure adequate stock, minimize stockouts, and reduce excess inventory.
• The objectives of inventory control are to maintain optimal inventory levels, minimize stockouts and overstocking, reduce inventory costs, and improve customer satisfaction.
• Inventory control techniques include Economic Order Quantity (EOQ), Just-In-Time (JIT) Inventory System, and ABC Analysis.

Inventory Control Techniques

• Economic Order Quantity (EOQ) calculates the optimal order quantity to minimize total inventory costs.
• Just-In-Time (JIT) Inventory System orders and receives inventory just in time to meet customer demand, reducing inventory holding costs.
• ABC Analysis classifies inventory into three categories (A, B, and C) based on value and importance, focusing on high-value items.

Inventory Control Systems

• Perpetual Inventory System continuously updates inventory levels in real-time.
• Periodic Inventory System updates inventory levels at regular intervals (e.g., monthly).

Store Operations

• Store operations involve the management of day-to-day store activities to ensure efficient and effective operations.
• Key store operations include visual merchandising, store layout, employee management, and customer service.
• Visual merchandising creates an appealing store environment to attract customers and promote sales.
• Store layout organizes store space to facilitate customer flow, product placement, and sales.
• Employee management trains and motivates sales staff to provide excellent customer service and drive sales.
• Customer service ensures prompt, friendly, and helpful service to build customer loyalty.

Store Operations Strategies

• Cross-merchandising places complementary products together to increase sales and basket size.
• Loss prevention implements measures to prevent shoplifting, employee theft, and other forms of inventory shrinkage.
• Store maintenance regularly maintains store cleanliness, organization, and appearance to create a welcoming atmosphere.