STARBUCK INVENTORY MANAGEMENT

Inventory management is among the foremost necessary operations management

responsibilities as a result of inventory needs an excellent deal of capital and affects the
delivery of products to customers. Inventory management affects all business functions,
together with operations, marketing, accounting, data systems, and finance. choices
associated with managing inventory is improved through the employment of basic
tools, like bar cryptography, Ratio-frequency identification (RFID).

In retail, sensible service is dominant for client loyalty. however, once a provider is
sound at the rear door with a delivery throughout business hours, generally a retail clerk
has got to momentarily neglect a client to receive it.

For the present cafe chain Starbucks corporation., radio-frequency identification

technology might facilitate address those forms of dilemmas. Sean Detlef, manager for
partner and plus protection at Starbucks, told attendees at the national loading council
frequency Identification conference Monday in Long Beach, Calif., that the corporate
is considering victimization Radio-frequency identification technology RFID to assist
with deliveries.

But there are challenges with this new delivery method, together with managing
physical security and internal control, in order that delivery individuals "don't walk out
with the maximum amount stuff as they born off," Detlef says. "So, we tend to envision
associate degree RFID license-plate signature," he says, that a provider would use to
deliver product. employing a card, the provider would gain access to associate degree
RFID-enabled system that records the time, disables the alarm, and confirms a
supplier's identity before it unlocks the door and lets the person in. Ideally, the system
conjointly would record the inventory that is being delivered. "That's not aiming to
happen tomorrow," Detlef says. "But you cannot get the comes going till you develop
these ideas."
Besides, it's conjointly necessary to appreciate however Starbucks records their
inventory on their consolidated monetary statements. Since they sell merchandise, not
services, they need an oversized inventory, that they record at the lower of value or
market. it's conjointly crucial however a firm record and depreciates its inventory, and
may provide investors wrong data if not done properly.