Apple uses the ABC System to manage their inventory. At the Apple Store at Short Hills, NJ. One of the ICS Employees explained that the inventory is labeled in an ABC to different products and that is how Stores get their inventory replenished.
The A Items are Macs, Macbooks, iPhones and iPods. They use the Q system, the continuous system to make sure that they don’t run out of stock by checking inventory on a daily basis. These products are selected since they are the ones that provide most revenue for the company.
The B Items are AirPort Extreme, AirPort Express, Time Capsule, Batteries, etc. These items receive a P System. Because although they provide revenue to the company. These Items will be replenished once it falls the reorder point and only the amount to get back to target inventory.
Also, the C items which are usually cases, iPod docks, software, etc. Gets ordered periodically, but does not get managed as attentive as the A or B items. Since these are the products that provide the least revenue.
What is interesting is that the reorders are managed by corporate, not by retail. Retail takes care of the inventory count for Items A, B and C and provide Corporate information (E-Collaboration), in order to make a decision on reorders.
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