Table of Contents:
1. Abstract page 3
2. Brief Company Background page 5
3. Discussion of Business Problem page 6
4. High Level Solution page 7
5. Benefits of Solving the Problem page 8
6. Business/Technical Approach page 9
7. Business Process Changes page 11
8. Technology or business Practices used to augment the solution page 12
9. Conclusions and Overall Recommendations page 13
10. High-level Implementation page13
11. Recommendations page 14
References page 15
Why is Inventory Management integral to a successful business? In retail, inventory refers to the goods that will be sold. Retail companies use an inventory tracking system to see what merchandise is in stock, what is on order, when it will arrive and what has been sold. By tracking its inventory, a retail company can quickly identify fast- and slow-moving items and deal with them accordingly by re-ordering the product, decreasing the product price or promoting the product. Tracking inventory also allows retailers to plan intelligently based on the same information.
(Elise Moore, eHow Contributor, 2012) “Inventory management techniques can save your business thousands, even millions of dollars. There are several inventory related metrics that, when properly evaluated, help you determine the level of success of your inventory control.
All inventory management techniques fall into one of two stock control methods: minimum stock levels and stock review.
Minimum Stock Levels
Minimum stock levels are a process by which management sets a minimum stock level or re-order point (ROP). When the number on-hand reaches or drops below the ROP, an order is generated. This can be done through a manual process or generated automatically by inventory management software.
Stock review is a regular analysis of stock versus projected future needs. This can be done through a manual review of stock levels or as part of the demand analysis forecasting by ERP/MRP automated ordering.
In businesses where manual inventory management techniques are still in use, the primary inventory control methods include*: visual control tickler control click sheet control” (Henrick, Floyd et Al, US SBA, Publication MP 22) Visual Inventory control is the point that Ideal Health Weight Loss Centre is currently at, and the business plan goal is to have the Centre implement the stock control method of minimum stock levels. The company is a weight loss center that sells not just the protocol to weight loss but 53 different types of protein foods as well as supplements, and other health products. With a small client base the owner is having difficulties, predicting what products the dieters will want each week. The product is shipped from the Province of Quebec to the Province of Alberta which takes 6 days, if there is a Statutory Holiday within the week it is an 8 day shipping schedule. The business problem is how to insure that the right product is on the self at the right time for the client. For example, dieters come in for their weekly weigh in and the product they were wanting for the week is not available. What is influencing the problem is that the cost for the small business to have all 53 products in stock, the space that is required to have all 53 products on the shelves, and there are products that are popular for a couple of weeks, then do not sell for months and these take up shelf space.
2. Brief Company Background Ideal Health Weight Loss Center was founded in November 2009. It is small business which sells a weight loss protocol that uses protein products and supplements that when followed 3-7 lbs weight loss can be expected on average per week. The diet protocol is