TechnoBeer

The food and drug industry is one of the most widely known industries to utilize a inventory management system, specifically a fix quantity system. A fixed quantity system is where is where inventory is ordered on the same amount, for whenever needed. These type os systems need advanced amounts of technology to update and receive data on how much is need and when it is needed. Computers and wireless technology are usually necessary to create the basic system.

An example company would be Anheuser-Busch. Anheuser-Busch's BudNet, is a nationwide network that provides sales representatives and delivery drivers a detailed report on sales, shelf space, inventory and the displays in each store, (2012). These system allows store managers to simply input their current inventory throughout the store on a handheld device, and is then plugged into a wireless device that uploads the data to Anheuser-Busch' BudNet. From there, sales reports can begin the purchasing orders, and then given the report on what needs to be delivered to the drivers. Once the drivers deliver the product, managers sign off on the report and are billed for it.

As far as other inventories, this does not affiliate with Anheuser-Busch. Store managers may carry their own safety stock if needed. However, due to Anheuser-Busch complex system, this can break down sales of each individual store based on age, education, ethnicity, politics, and sexual orientation. Moreover, this is the main reason why Anheuser-Busch hold a share of $75 billion in the US market. This system alone have doubled profits for over 20 consecutive quarters.

In my own opinion, I strongly believe this system is the most vital part of the businesses operations management. Without it, this could drive up transportation costs, since delivery drivers would constantly deliver products, and provide inaccurate sales to customers since they would not know when they need their product and how much they would need. This statistical analysis, based on customer orders, has driven the company in profit margins not solely being known for the product, but how consumer receive the product.

References:

Heizer, J., Render, B. (2012). Operations Management (10th ed.). New Jersey: Prentice Hall.

Wednesday, August 8, 2012 // // 0 comments //