Answer to Question #207515 in Management for Hlulani Ndlovu

Question

On cantrary why should retailers such as fruit and veg not keep too much inventory

Answer 1

Fruits and vegetables are perishable items that need special consideration. As a result, retailers need not keep too much inventory but keep in mind different inventory management that cater to customers' needs. Instead of too much inventory, retailers of these products should devise replenishment ways to lead to customer satisfaction and less waste. Similarly, ordering these items require special care where order size, time of order, and how to review and replenish shelves are considered. Conclusively, on the first hand, vegetables and fruits retailers should not keep too much inventory since it can result in waste. On the other hand, too little inventory lowers customer satisfaction. Thus, considerations such as daily demand, variations in seasons, and lifespan of the products should be used to develop a replenishment mechanism.