Title

Inventory management system of departmental store: a case study

Abstract/Description

The inventory management system is a major concern of any firm, either manufacturer or retailer. This paper explained research that was conducted in a superstore to analyze its inventory management system. The methodology is divided into two phases. One is concerned with process improvement in the inventory management system and the other is concerned with developing an optimized stock level to minimize the inventory overstock and inventory shortage problems. The most selling products were sampled, and their data and documentation were conducted in the research. To develop an optimized stock level, different forecasting methods were used as alternative approaches and the most appropriate one was selected. Then, the EOQ model is used to propose a suitable order quantity. Safety stock and reorder level is also designed to manage the demand and lead time fluctuations. This approach can be used by manufacturing firms, retailers, distributors, and wholesalers. It will ensure the proper utilization of a company's resources, labor, and information system. This approach will surely enhance the profit earned by a firm by reducing the cost incurred in inventory-related activities at the same revenue.

Track

Management

Session Number/Theme

Session 1C: Business Sustainability

Session Chair

Dr. Amer Iqbal Awan, Institute of Business Administration, Karachi

Start Date/Time

23-6-2022 12:00 PM

End Date/Time

23-6-2022 12:20 PM

Location

Crystal Ball Room, Marriott Hotel, Karachi

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Jun 23rd, 12:00 PM Jun 23rd, 12:20 PM

Inventory management system of departmental store: a case study

Crystal Ball Room, Marriott Hotel, Karachi

The inventory management system is a major concern of any firm, either manufacturer or retailer. This paper explained research that was conducted in a superstore to analyze its inventory management system. The methodology is divided into two phases. One is concerned with process improvement in the inventory management system and the other is concerned with developing an optimized stock level to minimize the inventory overstock and inventory shortage problems. The most selling products were sampled, and their data and documentation were conducted in the research. To develop an optimized stock level, different forecasting methods were used as alternative approaches and the most appropriate one was selected. Then, the EOQ model is used to propose a suitable order quantity. Safety stock and reorder level is also designed to manage the demand and lead time fluctuations. This approach can be used by manufacturing firms, retailers, distributors, and wholesalers. It will ensure the proper utilization of a company's resources, labor, and information system. This approach will surely enhance the profit earned by a firm by reducing the cost incurred in inventory-related activities at the same revenue.