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Super Shopper has found that many of its best-selling products are constantly being depleted from the store shelves and are always on back order. In contrast, slower-selling products are constantly reaching their expiration dates and end up returning to the warehouse. You need to examine company data to find out why this is happening and hopefully come up with a viable solution. Each outlet provides the warehouse with a weekly listing of in-store inventories and expired products; if item counts are less than or equal to the reorder point, distribution takes place accordingly. The warehouse logs and destroys all store returns of expired products.
The warehouse clerk conducts a weekly inventory and submits an order for products that are less or equal to the warehouse reorder point; this order flows through accounting, and once funding is approved, the order passes to the company buyers. At this point, the company buyers submit a purchase order to the appropriate vendor. The vendors usually ship most items the day after receiving purchase orders.
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