Question

Completely and thoroughly explain the different inventory management decisions that would need to be made to successfully operate and manage a hardware (home improvement) store. You need to clearly explain the impact your inventory management recommendations will have on costs, profits, and customer satisfaction.

Answer 1

I would like to chose ‘Strategy of Alliances’ for optimum use of Inventory and excellent Inventory Management, which will not only benefit Customer with less cost, but also provide faster delivery, with more product varieties, generating higher level of customer service and satisfaction, whether you order offline or online.

I will collaborate my Hardware store Business, with other 5 major hardware stores in the area, for mutual benefits in context of Cost/ Customer/ Delivery/ market penetration and create the strongest Inventory Management in the territory.

Execute the marketing of each other’s products using existing distribution networks to reduce overall marketing costs and finally provide customers with less buying price.

We will Innovate faster by merging technologies and establish technological standards, so that Customer Service Excellence can be achieved faster.

We will create new business opportunities / new business options by leveraging each other’s core competencies, maximizing profits, for each others.