Inventory Management

by Una Freese, June 2014

1200 words

4 pages


In order to achieve the customers’ commitment at the level of maximum motivation, the retailers should have the demanded product available at all times (Varley, 2006, p. 33). This assists in decreasing the after buying dissonance, which happens the moment a client gets disagreeing feelings of a thought towards an item. In this situation, there is loss of loyalty. Retailers should focus on telling the truth to clients, in order to prevent such after buying dissonances. For instance, if a client is to order some goods which may take long before delivery, it is crucial for him or her to be made alert of delays likely to occur. Otherwise, the clients may feel they have been fooled, and they pass the blame to the retailer. A retailer is likely to get a reward of negative response, grievance to pals and most significant, long term destruction to his or her business. Customers should be feeling magnanimous even before purchasing the product, which can be achieved by satisfying their wants in time. If they are treated this way, they are likely to develop the product or service loyalty, which means they will always go for that product and not other alternatives or substitutes. Furthermore, delay in arriving of goods will lead the clients to make needless returns appointments, to reduce the number of stock outs thus saving time by eliminating needless returns visit by consumers.

A high point of after-purchase disagreement is negatively connected to the point of satisfaction a client gets out of good or service usage (Luo & Christian, 2008, p. 35). While having after-buying dissonance, customers are highly alert of the suppliers' communication. Customers may at times return or place the product, in order to decrease after-buying dissonance. Dissonance creates a high level of anxiety, which determines if the consumer will return or not.

Lacks of stock normally influence the capability to make a sale, since a product has to exist, for one to buy (Levine, 2000, p. 330). This problem may be caused by poor stock management. The inventory manager should always put into consideration the time it takes before the delivery is made, and ensure that there is no shortage of stock. This time from the day of order to the day the stock is delivered is called lead time, and it is predictable, since it is got from lead-times of the previous stock receipts. At times, the real lead time may be greater than the projected time, and this calls for the need to have safety stock. Safety stock gives safety from running out of stock, if the period it lasts to get a replacement shipment is more than the predicted lead time.

Efficient inventory control allows a supplier to exceed or meet her or his customers' satisfaction of goods accessibility with the quantity of every item, which will get the most out of the seller's net earnings. In reality, safety stock is a cost of performing …

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