Question

Super Shopper has ten outlets, all of which have the same layout. Each has 10,000 square feet of floor space and product placement is identical for each store. Three cash registers are conveniently located at the front of each store and utilize bar code scanning equipment for:

• Determining product pricing.
• Identifying quantity of each item purchased.
• Totaling customer sales.
• Adding appropriate sales taxes.

Each store has its own internal server that is used for updating prices according to bar codes and accounts for all purchased items. This server is also used to generate a weekly product order statement that is used by the warehouse to replenish store stock and reorder products as necessary.

As each sale transaction is made, the server is updated as to what was purchased, the quantity, and its price.

Management is not too sure why some items are not being replenished in a timely manner. If an item is not available for sale, a lost opportunity is incurred. Every lost opportunity is reflected on the outlet’s bottom line.

Each Super Shopper outlet is judged by their individual revenue which has resulted in a competition with the other outlets. Management sees this friendly rivalry as a positive outcome that benefits the company as a whole.

Create a sales report for each outlet and generate visualizations that provide some actionable insights that could explain how each outlet could keep their shelves stocked at all times. Try to identify any patterns that might surface in your analysis. Are there products that are not selling?

Answer 1

Following are few steps that can help the stores improve their overall performance and ensure proper inventory management:

1. Daily inventory assessment till the inventory tallying and analyzing is in process.
2. Using systematic inventory management techniques such as Kanban system or Just-in-time system to manage replenishment system.
3. Training staff to use the technology and inventory management tools and techniques
4. Data analysis and trend analysis
5. Arranging the store as per preference by customers of particular store outlets.
6. Maintaining 5'S' in stores. Thereby improving visibility and proper arrangement of items.
7. Defining minimum ordering quantity for all products