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Analysis of Different Inventory Control Techniques: A Case Study in a Retail Shop

Journal of Supply Chain Management Systems

Volume 6 Issue 3

Published: 2017
Author(s) Name: S. K. Biswas, C. L. Karmaker, Ariful Islam, Nazmul Hossain, Shamim Ahmed | Author(s) Affiliation: Dept. of Industrial and Production Engg., Jessore Univ. of Science and Tech., Jessore, Bangladesh.
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Abstract

The inventory of materials constitutes the most significant part of current assets and working capital in any organisation. A small saving in the inventory will mirror a crucial edge in benefit of the organisation. In Bangladesh, the retail shops generally face two types of inventory related problems which are either stock-out or overstock. As a result, most of the shops fail to maintain their product availability with lowest possible inventory cost. Through proper inventory control techniques, probability of stock-out as well as overstock situations in the retail shops can be minimised. The present paper is a case study of different inventory control techniques for efficient inventory management system of a retail shop of Bangladesh. The sole purpose of the study is to provide a guideline for inventory managers that will help them to ensure product availability at right quantity as and when required. Relevant data were collected from a renowned retail shop, namely, Pran RFL group, Bangladesh. This real case demonstration will certainly help the future researchers as well as the Bangladeshi manufacturers to maintain proper control & management of inventories.

Keywords: Inventory Control, Profit, Stock-out, Overstock, Retail Shop

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