Inventory and Alliance Supermarkets

bond certificate Supermarkets has been using a point-of-sale (POS) organization for somewhat time to baseball swing its stock list. The system uses a laser s privyner to read the universal harvest-tide inscribe (UPC) on severally spot at the checkout container. The UPC is a number that uniquely identifies the product on which it appears. Currently, alliance is using the UPC nurture to update stock records for each item. Although the system has greatly improved the companionships ability to replenish inventory promptly, the company still has some problems.For example, sudden changes in demand for a particular item can catch the company by surprise as it bases inventory reclamation on historical demand patterns. Further, demand patterns and preferences whitethorn vary from star remembering to other depending on the customers served by each, but the inventory system groups all demand teaching together and treats each store equally. Finally, the manufacturers that cast off the products stocked by bond paper Supermarkets be always pressuring Alliance to aid them target appropriate customers for special promotions and sales.The chief information officer (CIO) of Alliance realizes that much more could probably be done with the selective information unruffled from its POS system. For example, the company could analyze the relationship between each products sales and weather patterns. It is even possible to analyze an item-by-item customers buying habits and identify instances when a customer may be persuaded to try a different brand of a sealed product. animadvert you ease up been asked to study this situation and suggest possible new and advance(a) uses for the information generated by the POS system.Ideally, these ideas should dish out Alliance make recrudesce serve its customers by ensuring that adequate quantities of each item are available, that costs are unbroken low, and that customers are made aware of new products that may inter est them. 1. What information may help Alliance reduce costs while providing better service? 2. If purchase information can be obtained on individual customers, what new approach could be used by Alliance?Your wallpaper should be in paragraph form (avoid the use of bullet points), and back up with the concepts outlined in your text. Do not include the original questions of the fitting in the paper. Carefully review the Grading Rubric for the criteria that volition be used to evaluate your assignment. Alliance Analysis The CIO for Alliance Supermarkets desires to make better use of the volume of data retrieved with each sale via the Point of change (POS) software that documents the sale of each product as it is bar coded.There are three key issues which the CIO wishes to address 1) be able to respond to sudden, out of the blue(predicate) inventory demand 2) identify demand patterns that vary from store to store 3) assist the manufacturers to better target customers for special promotions and sales. With the use of POS, Alliance Supermarkets wee-wee the ability to track sales of products and re nightclub them automatically. With this type of information, the manufacturers have organise access to what products have been sold as they are scanned.Scanning the bar code for each product sends a signal to the manufacturers documenting the sale of each item in inventory as the sale occurs. When pre jibed levels are reached, an gild is placed with the manufacturer to replenish the inventory. The POS information can in like manner help manufacturers analyze an individual customers buying habits and identify instances when a customer may be persuaded to try a different brand of a certain product (Vonderembse & White, 2013).Alliance Supermarkets can better serve its customers by having adequate supplies of inventory based upon the ways that the store tracks its inventory. Not only will unceasing order replenishment of inventory improve customer satisfaction, but it will have the added effect of improving efficiencies and making the best use of seat of government resources. A perpetual inventory system of some merchandise much(prenominal) as perishable foods like meat, dairy products, and vegetables can help set down costs through greater efficiencies in processes.By avoiding Stock Outs, customers will have the ability to purchase their desired products without inventory costs. Adding Safety Stock to the inventory control plan can also aid Alliance in flexing up for sudden surge demand. Taking advantage of volume discounts is another way that costs can be controlled more efficiently. There is not always a cost savings in buying in volume. Therefore, using the formula of OP = dL can be used to determine an optimum point to reorder. OP = order point. d= daily use, and L = expire time.This helps determine how much advance notice is needed in order for the store not to run out of inventory. (Vonderembse & White, 2013 p. 10. 4) Alliance can also make use of demographic and purchasing decisions based upon POS transactions. Sorting the data individually by each store will help Alliance identify purchasing trends. Orders can be placed specific to each stores demographic. A periodic inventory control system of non perishable items such(prenominal) as dairy products, meat and vegetables could be used to help pass judgment the grocery stores replenishment goals without running out of goods.