BUS644 Week 5 Paper - Alliance 1 Alliance Supermarket and...

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Alliance 1Alliance Supermarket and Point-of-Sale (POS) SystemsRobert BacaBUS644: Operations ManagementProf. Jamal BattaFebruary 17th 2014
Alliance 2Alliance Supermarket and Point-of-Sale (POS) SystemsIntroductionAlliance Supermarket has been using a point-of-sale (POS) system for some time to track its inventory. The system uses a laser scanner to read the universal product code (UPC) on each item at the checkout counter. The UPC is a number that uniquely identifies the product on which it appears. Alliance is using the UPC information to update inventory records for each item. The system has improved the companies’ ability to replenish inventory promptly. This has caused some problems for the company such as sudden changes in demand for a particular item that can catch the company by surprise based on the fact that Alliance bases its inventory replenishment on historical demand patterns. Demand patterns and preferences may vary from one store to another depending on the customers served by each but the inventory system groups all demand information together and treats each store equally. The manufacturers that make the products stocked by the company are always pressuring Alliance to help them target appropriate customers for special promotions and sales. The CIO understands that more could be done with the data collected from its POS systems. After being asked to study this situation and suggest possible new and innovative uses for the information generated by the POS system. The purpose of this paper is to formulate new and innovative uses of the information from the POS system that will help Alliance better serve its customers by ensuring that adequate quantities of each item are available, that costs are kept low, and that customers are made aware of the new products that may interest them. The paper will also describe any information that may help Alliance reduce costs while providing better service while proposing a new approach that could be used by Alliance to use the information

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