Presentation Transcript

1. Inventory Management Goals Prepare a purchasing plan for inventory. Describe the perpetual and periodic inventory methods. Determine how much inventory to keep in stock.
2. Terms perpetual inventory method stock card point-of-sale software system periodic inventory method stock turnover rate
3. The Marketing Concept and the Product The wants and needs of customers are the most important consideration when developing any product or marketing effort. The U.S. market is consumer-driven.
4. Product Mix product mix the different products and services a business sells Entrepreneurs may carry some products that are not profitable because the products provide a convenience for customers.
5. The Small Percentage Often a small percentage of the product selection makes up the majority of sales revenue.
6. Meet Inventory Needs inventory the stock of goods a business has for sale Inventory costs include: storage insurance taxes purchase price of inventory Inventory must be well managed if you want to make a profit.
7. Purchasing Plan The sales forecast can be used to calculate required inventory. Ending inventory = Beginning inventory + Purchases ─ Sales
8. Chapter 10
9. What are some of the concerns managers have regarding inventory? Chapter 10
10. Track Your Inventory perpetual inventory method monitors inventory levels daily efficient avoids inventory shortages stock card a paper inventory record for a single item electronic versions available
11. reorder point the minimum amount you want to keep in inventory indicates when you should place an order to receive more inventory
12. Use a Computer point-of-sale software system updates inventory as each sale happens provides up-to-date inventory levels
13. Periodic Inventory Method taking a physical count of merchandise at regular intervals Take a Physical Inventory counting and recording actual units should be done once or twice a year can highlight discrepancies caused by a failure to record sales theft damage
14. How does the perpetual inventory method differ from the periodic inventory method?
15. Manage Your Inventory Costs of Carrying Inventory Costs can increase for many reasons including: obsolescence deterioration interest fees insurance storage
16. Costs of Being Out of Stock Stock shortages can lead to: loss of sales loss of customer loyalty Inventory Turnover Rate the rate at which inventory is sold and replaced with new inventory Why is this important for you to know?
17. You Task Complete the Inventory Management Worksheet Complete the calculations: - Yearly sales (quantity sold  retail price) - ending inventory value (ending inventory  retail price) Answer the questions Email Mr. Farrar when you both parts are finished.