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Running Head: POINT OF SALE SYSTEMS1Alliance Supermarket and Point-of-Sale SystemsAmanda BockBUS 644: Operations Management (NAK1606A)Dr. Mark ZeccaMarch 7, 2016
POINT OF SALE SYSTEMS2Alliance Supermarket and Point-of-Sale SystemsIntroductionAlliance Supermarkets uses a point-of-sale (POS) system to track their inventory by the use of a laser scanner which reads universal product codes (UPC). With the UPC reader they areable to keep their system records updated greatly improving their ability to replenish the inventory of their products in a prompt manner. Unfortunately, sudden changes in demand for particular items have caught the company by surprise as it bases inventory replenishment on historical demand patterns. Additionally, problems with the demand patterns and preferences may vary from one store to another depending on the customer base. The inventory system groups all demand information together treating each store equally. Alliance feels pressured by the manufacturers who provide their products. The manufacturers want Alliance to help them target the customers who would be the best fit for their special product promotions and sales. The chief information officer (CIO) for Alliance has realized that the company could probably do much more with the data that is collected form the POS system. He feels the company could analyze the relationships between each product’s sales and weather patterns. He likes the idea that the POS systems could also be used to analyze the buying habits of individual customers, including the ability to identify instances in which a customer may be persuaded to try a different brand of certain products. For this paper I will address ways Alliance Supermarkets can use the POS system for new and innovative uses. By having the ability to better serve their customers and ensuring they have the adequate quantities of their products on hand, they will have the ability to keep cost down while making consumers aware of new products of interest. I will propose a new approach to Alliance where they could use the
POINT OF SALE SYSTEMS3purchase information in which their POS systems can obtain on individual customers, while assessing ethical and privacy considerations of information that is gathered from the POS systemon the items purchased.