Inventory Techniques used by Virgin Megastore
It is a common inventory technique used by the company. Virgin Megastore classifies its inventory into three classes. That is A, B and C. The company categorizes products based on the cost significance and inventory value. Then each category of the inventory is managed differently. According to Aro-Gordon , Gupte , & Mysore , 2016) ABC technique is made more appropriate when used with Just-In-Time technique. PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
How Virgin Megastore Manages its Inventory
Virgin Megastore lays emphasis on the inventory accuracy. To achieve this the company has employed accurate recording and cyclical counting of the inventory. Knowing the exact amount of inventory in the store helps the management focus on the needs of the customers. Accurate inventory managements ensures the right number of inventory is planned for ordering, scheduling and shipping.
Strategies, Techniques and Software used for Inventory Management
Virgin Megastore use Microstrategy business intelligence software that it integrated into the company’s JDA MMS merchandising system (Hadfield, 2017). This information system helps the company to plan for the purchase of the products at store level. Again, this system has been very crucial in helping the company increase its sales and minimize the level of capital tied up in the stocks in the store.
To ensure consistency of accurate inventory records, the company also carries out cyclical counting. The current inventory total is compared with the accurate records and the inaccurate are documented. This helps in maintaining the reliable record of the inventory in the store. It also helps managers to adopt to control measures to reduce loses, pilferage, theft and shrinkage.
Epos-Linked Virgin Information System is another strategy that has been used by the company to carry out assortment plans in its stores. This software helps in managing the buyers’ demands by matching their supplies with their demands. PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
Aro-Gordon , S., Gupte , J., & Mysore . (2016). Contemporary Inventory Management Techniques: A Conceptual Investigation. International Conference on Operations Management and Research, 1(1), 1-20.
Hadfield, W. (2017, February 6). Virgin Retail gets stock on the move with BI software. Retrieved from TechTarget: http://www.computerweekly.com/feature/Virgin-Retail-gets-stock-on-the-move-with-BI-software