3.1.2.3 Managing Inventory
Completion requirements
Managing inventory is an important part of physical distribution. Organizations make profits from the sale of their inventory.
Urban Grocer is a small retailer. In the following video the owner provides information on the role technology plays in inventory management.
If adequate inventory isn't maintained, disappointed customers could switch to a different brand (or worse, a different retailer). This translates into lost revenues for a business. Conversely, for a business to hold too large an inventory is risky. If the product loses popularity or becomes obsolete, the inventory become difficult to sell. Reaching a happy medium is a constant battle.
Urban Grocer is a small retailer. In the following video the owner provides information on the role technology plays in inventory management.
If adequate inventory isn't maintained, disappointed customers could switch to a different brand (or worse, a different retailer). This translates into lost revenues for a business. Conversely, for a business to hold too large an inventory is risky. If the product loses popularity or becomes obsolete, the inventory become difficult to sell. Reaching a happy medium is a constant battle.
When inventory is inadequate and a shortage occurs, a stockout occurs.