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Operations Management | "Supply Chain Strategies in Retail"

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Supply Chain Strategies in Retail

- by Gautam Sukanya Krishnan & Amit Kumar *

Previous

Page - 7

Scene 2: Date 02.01.200X | Day-Monday| Time: 08:30 hrs
Customer 2’s purchase: -

  1. 10 Kg of Rice of Brand X

  2. 15 Kg of Sugar of Brand Y

  3. 100 Bar Chocolates of Brand P

  4. 50 Bar Chocolates of Brand Q

  5. 30 Nos of Beverage Bottles of Brand Z

  6. 40 Tooth Brushes of A Brand

  7. 50 Toilet Soaps of L Brand

At the end of the first day’s purchase, the following matrix would clearly represent the inventory status of XYZ retailers.

Tooth Brush Toilet Soaps Bar Chocolates (P) Bar Chocolates (Q) Beverages Rice Sugar
Original Stock 60 100 150 75 50 30 40
Sales 40 50 110 50 30 10 15
Demand 40 50 100 50 30 10 15
Shortage 20 - 60 25 10 - -

Implications:

  • Alarming inventory.

  • Shortage faced in case of 4 items of certain brand.

  • If inventory not re-filled, sales is lost.

    Need of the Hour:

  • Immediate communication to the supplier (Distributor/ Wholesaler / warehouse).

  • Call for a transporter who would work at the required speed and pace.

  • Relationship with the supplier has to be smooth enough to ask for his help at any time of the day.

    Next

    * Contributed by -
    Gautam Sukanya Krishnan & Amit Kumar,
    PGDSM - MIT,
    S. P. Jain Institute of Management & Research, Mumbai.

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