CASE STUDY You are working as an inventory clerk in Shop Smart Centre. The company specializes in selling all types of gifts, ornaments, clothes and home design items. Due to high turnover of sales, the company orders items in bulk and keeps them in their storage until it is required by the sales department. Sometimes the staffs spend a lot of time looking for a particular item in the storage required by the customer which causes frustration and the customer eventually leaves the premises without even looking at the item. The owner of the business is really disappointed about this. Someone recently mentioned to him about having an ‘efficient warehouse system’. He was unsure what the key features of an efficient warehouse contained. He has come to know that you are doing a course in inventory management and has approached you for advice. Questions: Explain the key features of an efficient warehouse Explain how the inventories should be placed so that it can be found easily by the staffs. State the processes included in an efficient warehouse system State the type of warehouse that would best suit the business and why. Make a computer sketch of an efficient warehouse system for the business, clearly labeling receiving goods area, placement of inventories, dispatch area etc.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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CASE STUDY

You are working as an inventory clerk in Shop Smart Centre. The company specializes in selling all types of gifts, ornaments, clothes and home design items. Due to high turnover of sales, the company orders items in bulk and keeps them in their storage until it is required by the sales department. Sometimes the staffs spend a lot of time looking for a particular item in the storage required by the customer which causes frustration and the customer eventually leaves the premises without even looking at the item. The owner of the business is really disappointed about this. Someone recently mentioned to him about having an ‘efficient warehouse system’. He was unsure what the key features of an efficient warehouse contained. He has come to know that you are doing a course in inventory management and has approached you for advice.

Questions:

Explain the key features of an efficient warehouse
Explain how the inventories should be placed so that it can be found easily by the staffs.
State the processes included in an efficient warehouse system
State the type of warehouse that would best suit the business and why.
Make a computer sketch of an efficient warehouse system for the business, clearly labeling receiving goods area, placement of inventories, dispatch area etc.

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