INVENTORY MANAGEMENT: A CASE STUDY OF DEPARTMENTAL STORE

Abstract

Inventory management is a key operational function in the retail sector especially for departmental stores which manage a wide range of product categories where the pattern of demands is heterogeneous. Inefficient inventory practices could lead to stock outs, high excess inventory, augmented holding costs and reduced customer satisfaction, which contributes to negative effects on organizational profitability and competitiveness.

The present study involved the qualitative case study methodology which was based on the secondary sources of data generation, observational insights, and available literature sources respectively regarding inventory management. The focal parameters investigated include inventory control techniques, demand forecasting methodologies, replenishment policies, storage practices and the utilization of information technology for the purpose of inventory tracking.

The empirical findings suggest that in spite of primitive procedures in inventory control implementation, the departmental store shows constraints in the precision of forecasting, lack of systematic classification of inventory items, and the use of manual procedures that result in overall inefficiencies of operation.

Furthermore, the research also highlights the use of structured inventory model such as ABC analysis and economic order quantity (EOQ) framework and integration of point-of-sale systems and dedicated inventory management software to improve inventory accuracy and efficiency in cost.

Consequently, the case study draws to the end that efficient inventory management goes beyond just an operational necessity, as it represents a strategic tool that equips departmental stores to drive the levels of service, optimize working capital and provide a sustained competitive edge in a dynamic retail environment.

Finally, the results provide practical implications for retail managers and they add significantly to the body of academic knowledge and literature in the study of inventory management practices in a real-world retail environment.