StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The basic EOQ issues that Sainsbury faces - Coursework Example

Cite this document
Summary
Sainsbury’s supermarket located in the city of London is a giant departmental store that offers a variety of groceries and other household items at reasonable cost. As it is a huge firm it has to deal with huge amount of inventory…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
The basic EOQ issues that Sainsbury faces
Read Text Preview

Extract of sample "The basic EOQ issues that Sainsbury faces"

Running Head: Unit 4 DB Insert His/her Sainsbury’s supermarket located in the of London is a giant departmental store that offers a variety of groceries and other household items at reasonable cost. As it is a huge firm it has to deal with huge amount of inventory. Sainsbury’s manages its inventory through fixed order quantity system. Fixed order quantity system is an inventory control system in which the firm keeps record of the inventories after each purchase and sale. And when the inventory falls below the specified level an immediate order for the replenishment of inventory is passed.

This system is mostly employed by the firms which deal with a huge amount of inventory. (SME.com.ph) as a super market Sainsbury’s also deal with a large amount of inventories which is why it has employed this system. The basic EOQ issues that Sainsbury faces are (1) Purchasing cost; the cost which is incurred during the purchase of inventory as it is a merchandising company. (2) Holding (carrying) cost; the cost included in the maintenance of inventory. (3) Obsolescence cost; as it is a super market it deals with perishable goods and also with technological goods that might become obsolete, the cost related to such goods is obsolescence cost. (4) Safety Stock; it has to keep a large amount of safety stock because it is a giant departmental store.

Safety stock is maintained in order to overcome supply shortages which may occur from time to time. (R. Anthony Inman) Sainsbury keeps huge stocks of all its inventories except the perishable and technological goods. By using the fixed order quantity system Sainsbury has improved its inventory management to a great extent. This system helped it to maintain an accurate record of its inventories. Moreover the timely replenishment of inventory has helped Sainsbury to avoid the flaws which may occur due to the shortage of supply.

As it handles transactions including a large amount of goods I think fixed order quantity system is an ideal choice for Sainsbury because through this system it can manage and control its inventories in effective and efficient manner. (Sainsbury’s latest supply chain initiatives) References SME.com.ph, Managing Your Inventory, SMS.com.ph Online, Web, 2011. http://www.smetoolkit.org/smetoolkit/en/content/en/587/Managing-Your-Inventory Inman, R.A. Inventory Management, Reference for Business Online, Web, 2011.

http://www.referenceforbusiness.com/management/Int-Loc/Inventory-Management.html IGD Analysis, Sainsbury’s latest supply chain initiatives, IGD Online, 2009, Web, 2011. http://sca.igdinfo.com/print.asp?pid=4&var1=1081&var2=0

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The basic EOQ issues that Sainsbury faces Coursework”, n.d.)
Retrieved de https://studentshare.org/business/1426362-the-basic-eoq-issues-that-sainsbury-faces
(The Basic EOQ Issues That Sainsbury Faces Coursework)
https://studentshare.org/business/1426362-the-basic-eoq-issues-that-sainsbury-faces.
“The Basic EOQ Issues That Sainsbury Faces Coursework”, n.d. https://studentshare.org/business/1426362-the-basic-eoq-issues-that-sainsbury-faces.
  • Cited: 0 times

CHECK THESE SAMPLES OF The basic EOQ issues that Sainsbury faces

Formal Legal Advice - Opinion on Behalf of Leo

the basic facts appear as outlined.... Property Law- Formal Legal Advice Date IN THE MATTER OF: RE: LEO OPINION ON BEHALF OF LEO 1.... I am asked to advise Leo as to the relevant law how best to carry out his wishes as contained in his draft will, particularly in regard to the validity of his intentions....
12 Pages (3000 words) Essay

Operations Management for Creating Competitive Advantage

The various issues that it primarily faces with respect to operations management are that of layout, location selection, supply chain management, and inventory.... Thus, improving operations management is one of the basic things that they can do.... hellip; Tesco faces issues regarding location, layout, supply chain, and inventory since it basically is a retail outlet.... Competition from sainsbury and other leading retail stores is a big threat to Tesco and it does not want to lose out on market share to these competitors....
15 Pages (3750 words) Case Study

Operations management for creating competitive advantage

Thus, improving on operations management is one of the basic things that it can... There are many aspects of an operations management of a company, but Tesco faces issues regarding location,… The strategic fit between the company's strategies as well as mission has been quite great, after a change of strategy when the Founder resigned from the company.... Competition from sainsbury and other leading retail stores is a big threat for Tesco and it does not want to lose out on market share to these competitors....
11 Pages (2750 words) Essay

The Element of Equal Employment Opportunities

This report is intended to evaluate the extent to which the National Minimum Wage has been successful in bridging the gap between male and female workers in the retail catering sector of the UK.... While undertaking extensive literature review and drawing ideas from relevant… , the report has discussed the employment conditions prevalent in the nation and has also tried to throw light upon the element of equal employment opportunities....
16 Pages (4000 words) Essay

The Key Issues of Human Resource Management

This paper focuses on the key issues of Human Resource Management.... HRM function at ASDA plays the main role in meeting the long term purpose of the organization.... Workforce planning is the primary function of HRM at ASDA, which determines the workforce requirements in the present and future context....
9 Pages (2250 words) Coursework

Sainsburys Business Strategy - Issues That Led to the Firms Crisis

This paper 'Sainsbury's Business Strategy - issues that Led to the Firm's Crisis" focuses on the fact that the survival of a company in the supermarket industry has always been a challenging task.... In this context, Tesco, Asda, and sainsbury (as well as Waitrose) have been recognized as the most successful firms in the UK regarding the supermarket industry.... From the above companies (Tesco, Asda, and sainsbury) Tesco which entered in the Stock Exchange in 1947 has 'passed' all its competitors – and sainsbury which is the firm examined in current paper – and managed to reach the first position of the supermarket industry in 1995 (a position that keeps since then) [7]....
8 Pages (2000 words) Case Study

How Companies Deliver Customer Value

nbsp; This part concludes with an actual example of a private business organization that delivers customer value from managing its supply chain, the challenges it faces, and how the organization meets those challenges.... This paper “How Companies Deliver Customer Value” undertakes a critical analysis of the use of strategic marketing tools - QoS, CRM etc....
29 Pages (7250 words) Literature review

Proposed Marketing Research for EDF Energy

The study has been conducted in lieu to prepare a proposed market research plan for EDF energy.... The report focuses on different data sources to be used to collect the data (Primary and secondary); Type of data (qualitative or quantitative) and also a data analysis plan  … The analysis is conducted based on the type of data collected....
10 Pages (2500 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us