Developing a cost-effective stock control system for the Ashesi shop
The Ashesi souvenir shop is a relatively small shop with a restricted target market. The shop since its inception in 2016 has been experiencing lapses in its inventory control as there have been continuous stockouts due to a poor understanding of what to order, when to order and how to order. According to research, the shop can prevent significant losses in revenue by developing a cost-effective stock control system which provides key information on the usage value, unit cost and accessibility of the shop's items, which are all strategic elements of arriving at the optimal decision of what to order, when to order and how to order. To address the problem, the following solution was proposed. The solution entails the combined application of two models; namely, the SDE model and the HML models which arrive at optimal decision areas of what to order, how to order, and when to order items essential to revenue generation in the shop. Both models reduce wastage and improve the efficient disbursement of funds to increase profitability. The final element of the solution is an all-inclusive POS system to synchronize all stock related information. To bring this to bear, the management would need to spend resources and time to find the multiple vendors within the region as well as expend financial resources on the POS system. To complete this project, it is critical that the solution is carried out during the off-season when the shop is not in full operation. This will enable that the models are effectively carried out with little distractions.
Applied project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2019
Ashesi University, stock control system, Ashesi souvenir shop, stock management software