ALLIANCE SUPERMARKETSTo tract inventory Alliance Supermarkets uses a point-of-sale (POS) tracking system. Using a laser scanner they are able to read the unique numbers identifying the product, known as the Universal Product Code (UPC), on each item at the time of checkout. This information is then used to update inventory records for each item giving them the ability to promptly replenish inventory. The dilemma they currently face is the sudden and unexpected changes in demand which requires different levels of inventory the store is not equipped to handle. The purpose of this analysis is to formulate new uses of the POS system, reduce cost while improving service, suggests new approaches using the purchase information and assess the ethical or privacy considerations of gathering POS system data (Vonderembse & White, 2013). Currently Alliance Supermarkets uses the information from the POS system to make inventory decisions for stores collectively. Separating the POS data by individual stores, rather than grouping the data together, would allow stores to only stock inventory that is relevant to their market. For example, stores may stock air conditioners in Arizona in March as the temperatures increase well into the 80s; however, they would not want to stock them in Alaska atthat time of year due to the consistently low temperatures. Although the POS data may reflect airconditioner sales in March it would be necessary to take a deeper look at the individual locations reporting this data to determine the need to stock them.