Bath & Body Works Inc, Inventory Proposal For Qu

1282 words - 6 pages

Inventory Proposal with Summer Historical Inventory Data
Bath and Body Works (BBW) is a franchise owned by Limited Brands Incorporated. BBW sells personal care, beauty, and home fragrance products that are sold under the Bath and Body Works, CO Bigelow, and White Barn Candle brand names. Bath and Body Works is a very successful business and has grown to become one of the largest personal care retailers in the United States.
The inventory discussed below is that of a Bath and Body Works Flagship store. At this store there are two franchises occupying the same space respectively, Bath and Body Works and White Barn Candle Company. Currently this store uses the ...view middle of the document...

Below are Bath and Body Works' summer historical data and its seasonal indices. This information is the result of the company's current inventory system. The seasonal indices below are used to analyze the given inventory data in order to forecast the requirements for next year and construct a histogram of the inventory.
At Bath and Body Works a lack of product equals a lack of sales; therefore, possessing accurate readings of inventory levels support a healthy replenishment for the stores. However, the major setback of the system is that the time and manpower it takes to perform stocktaking every six months. If the inventory check system failed because of network errors, the data become inaccurate or unrecorded. Thus, having a data distribution allows us to view the sales volume and be able to forecast the future sales enabling the organization to provide adequate inventory necessary to meet sales needs. Pictures of a data distribution give us a quick view of the distribution, but we often need to use a single number to summarize a collection of data or to compare two or more collections of data” (Sevilla & Somers, 2007, p. 266)
Perpetual Inventory System
At Bath and Body Works, a Limited Brands store, the Universal Product Code is used along with the Perpetual Inventory System. Bath and Body Works receives between 100-250 boxes twice a week depending upon the season (during holiday season shipments increase to three times a week). The UPC helps to keep track of items with Point-of-Sale (POS) registers. Both of these tools aid in the use of the perpetual inventory system that keeps track of removals from inventory continuously, which monitors the current levels of each item. This system, combined with the UPC, has every inventory item marked with a barcode that contains all of that products information. The boxes or carts that contain the inventory items are also labeled using barcodes. The UPC makes it extremely easy to categorize all inventories within the computer system as well as on paper when necessary. The perpetual inventory system uses computer-based technology including the UPC to track the removal of items from the inventory as well as keep records of items in stock. Toward the end of every month, a physical list of inventory is printed and reviewed by a designated employee. With this method, the computer generated system is monitored by one or more persons throughout the year to ensure everything is in order. Another aspect of the checks and balance system is the bi-annual physical inventory check, when the entire inventory is checked and then the numbers are compared to those in the computer system.
Seasonal Indices to Analyze the Inventory Data
To determine the future inventory cost for the year using the time value of money the team first looked at the inventory cost for each month and then calculated it for the year. This was based on knowing the average inventory cost for all four years and then...

Other Essays Like Bath & Body Works Inc, Inventory Proposal for Qu

Case 3 B&L Inc Essay

3942 words - 16 pages .     Therefore,  it  is  necessary  that  three  options  be  developed  for  comparison:     1. Option  1:       All  Insourced  to  B&L  (current  Mode  of  Operation)   2. Option  2:       All  outsourced  to  Mayes  (current  proposal)   MGMT  3624  Case  3:    B&L  Inc

Forcasting with Indices Essay

1838 words - 8 pages works to an extent but if the products were snow shovels, then keeping 15 on hand yearly would not make sense. The business would be losing valuable storage space. On the other hand this type of inventory system lets the company know exactly how much space is needed in the stock room. If the business knows that 15 of these products are the most that it will have the business will have this space designated for those products without crowding

Book Report: Northanger Abbey

679 words - 3 pages Bennet. Around 1801 Jane Austen was forced to move to Bath, a move which she resented and fought, this could lead to the portrayal of Bath in her works. Northanger Abbey was published after Jane’s death, however it is said to be the first one she wrote. Northanger Abbey was sent to a publisher in 1803 but never published. It was revised and then published towards the end of 1817; however it is dated to have been published in 1818. It is a

Acct 460 Chapter 12 exercise

518 words - 3 pages Keystone Computers Inc. manufactures a product, direct labor and overhead ordinarily become part of inventory costs? E Should Keystone Computers inventory be valued at the lower of standard cost or market? F Is it safe to assume that any inventory items present as "consigned in" should not be included in the client's inventory? G When I take test counts of items, does this eliminate the need for Keystone Computers Inc. personnel to count those items

Operation Research

1303 words - 6 pages 11-1 Inventory Management 11-2 Inventory Management CHAPTER Operations Management 11 William J. Stevenson Inventory Management 8th edition McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. 11-3 Inventory Management 11-4 Inventory Management Types of Inventories Inventory: a stock or store of goods

Industrial Problem Analysis

1673 words - 7 pages of material to the operators in the beginning of every year. This proposal is at first applied but the review and control of these materials caused problems when the production plans changed and it is not in use anymore. 2. To review the material in SMD WIP Inventory in certain periods. This proposal is also not applicable, because closing the WIP Inventory for review will stop the production. SOLUTIONS I HAVE PROPOSED: 1. To count

Fucked Up Shit

1074 words - 5 pages purchase discount is the amount recorded as a reduction to the Merchandise Inventory account when the payment was made within the discount period of September 18 ($60,000 × 1%) = $600. Expressing this in terms of an annual interest rate, it would be the equivalent of paying 24.6% ($600 ÷ $59,400 × 365/15) for the use of the money for 15 days. PROBLEM 5-6A PROBLEM 5-6A (a) CLUB CANADA WHOLESALE INC

Information Systems Paper

1275 words - 6 pages business owner should have the understanding of which information systems work best for the business. I am writing this proposal to better inform you of how the knowledge of these information systems most benefits A&R Records Inc. Times have changed and we need to meet the times head on and maximize our value. The systems I am proposing we use are Transaction processing system, Functional Area IS, Management Information Systems, E-commerce systems

Marketing Mix

1537 words - 7 pages . There are four elements of the Marketing Mix product, place, price, and promotion. This paper will describe the four elements of the marketing mix, how each element is implemented in an organization, and how each element impacts the development of the organization’s marketing strategy and tactics. As an example we will use the organization that I work for Manufacturer Direct Sales Inc. Four elements of the marketing mix Four elements of the

Scientific Glass

1887 words - 8 pages QUESTION #1 Provide an assessment of SG’s current situation (Using exhibit 1 compare inventory growth to sales growth and compare inventory turns too). What are the main culprits for the current situation? Current Situation: Eric Gregory championed a major initiative within Scientific Glass Inc. over the past three years. Gregory strongly believed that in order to maintain an edge on the competition, the company had to provide the “gold

Revenue Cost Structure Proposal

1283 words - 6 pages Revenue, Cost Concepts, and Market Structure Proposal Cover Letter Thomas Money Services, Inc. A Consumer Finance Company Subsidiary: Future Growth, Inc. Equipment Financing Xxxx Street Washington State, 99999 555-234-4567 Phone 555-234-3344 Fax Xxxx Avenue Oregon State, 55555 333-232-3333 Phone 333-443-2234 Fax Confidential Business Proposal Thomas Money Service, Inc. (TMS) has increased its revenues in the past by growing

Related Papers

Analysis You Decide Business Law Coleman Works For Software Inc

1120 words - 5 pages Factual Summary: In this scenario, Coleman works for Software Inc. in which some of his duties included traveling to prospective clients and meeting with representatives of his sales division. During one of his sales trips he went to the mall to buy a ring for his wife that he couldn’t afford and proceeded to steal it from the jewelry store. After stealing the ring he met with John at Jimmy’s Poor-Man’s Bar which was not a client of Coleman’s

Duan Wu Festival Essay

867 words - 4 pages and Qu Yuan’s ambition of saving his beloved country turned out to be impossible. In great pain, the patriotic poet committed suicide by drowning himself in Milo River on the fifth day of the fifth lunar month. Hearing the grievous news, the people of Chu rushed to the river and sailed their boats up and down to look for the poet’s body; someone threw Zong zi (pyramid-shaped glutinous rice dumpling wrapped in reed or bamboo leaves) into the river

Inventory Proposal Essay

2546 words - 11 pages field visit after proposal writing and we will collect the data for report writing. 3.4 Nature and Source of Data: We will collect the data from primary and secondary source. Primary data will be collected through questionnaire and secondary data will collect from different source that has been already published. On the basis of objectives we will prepare the different questions to ask the concern body

Yankee Candle Company Financial Analysis

1381 words - 6 pages competitors. Their three top competitors are Bath & Body Works, Blyth, and Lancaster County. The top three competitors do not specialize in candles but offer a plethora of other products to the selective consumer. Ratios The following are the computations of the financial ratios for Yankee Candle Company, Inc. All figures are compiled from fiscal reports from 2006 and 2005. The current ratio: current assets/ current liabilities = current