Date of Award
1983
Document Type
Thesis
Degree Name
Master of Science
Department
Business
First Advisor
Patrick Land
Second Advisor
Jack Kirk
Third Advisor
Alonzo F. Griffin
Abstract
This thesis examines strategies for improving inventory control in discount stores to maximize profitability and efficiency. It highlights four key factors affecting inventory management: optimum order timing, optimum order quantity, stockouts, and inventory shrinkage. Robinson emphasizes that discount retailers must carefully plan their stock replenishment processes to avoid excessive overstocking or running out of essential products during peak seasons.
The study discusses various inventory categories, including working stock, safety stock, remnant stock, seasonal stock, and pipeline stock, explaining their roles in maintaining a balanced supply. It also explores reordering methods, such as fixed quantity and fixed cycle reordering, to ensure timely restocking based on sales patterns and lead times. Additionally, the thesis examines the impact of stockouts on customer satisfaction and the use of rain checks as a temporary solution.
Another major focus is shrinkage caused by theft, clerical errors, and mismanagement. The study advocates for strong loss-prevention strategies, efficient merchandise planning, and improved turnover rates to enhance inventory accuracy. By implementing effective ordering, storage, and sales forecasting techniques, discount stores can reduce waste, improve cash flow, and increase overall profitability.
Recommended Citation
Robinson, Ernie Lee, "Inventory Control Improvement Within the Discount Stores" (1983). Theses. 1306.
https://digitalcommons.lindenwood.edu/theses/1306
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