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The chart above illustrates
that the purchasing process and policies need to be reworked. You can see
that large inventory purchases were made before the opening of the store,
which was necessary, but Melisa was not watching the sales trends often
enough. In the absense of the large orders at the beginning, Mackies would
likely have run out of some items the customers wanted. In the future, two
things should be changed. Mackie's should add reorder levels to the inventory
list/system and utilize daily or weekly inventory reports to stay on top of
the ordering. it is also important to keep inventory lean to closely match
sales expectations, not too much over and not running out of stock customers
want. This also keeps storage costs to a minimum. A just in time type of
inventory requires dilegently watching the sales trends and reviewing the
forecast on a regular basis. |
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