Abstract:
Purpose: This project intends to study the impact of inaccurate inventory records
in retail stores. The purpose of this project is to study how critical is the problem
of inaccurate accuracy and how it leads to hidden costs that the organizations do
not realize. This project will help to identify the costs associated with inventory
inaccuracy and the inconvenience it causes to the retailers, distributors and
suppliers. The project explores how inventory records and its inaccuracy can lead
to stock loss, stock surplus or stock outs.
Design and methodology: The research method used for data collection is
qualitative where detailed and extensive interviews were conducted with retail
store managers. The study will be better explained by taking a practical example
of D-Watson, a well-established medical store in Islamabad with 2 branches in the
city.
Findings: Organizations can take preventive and corrective actions to avoid
further inventory problems and inaccuracy; however, an easier method to achieve
this is to use an efficient and effective inventory management tool that account for
record errors.
Practical Implications: The proposed model here is the use of RFID that uses
radio frequency identification for the stock that is coming into the store and is
available for use. With the help of this automated system, the occurrence of
human errors will reduce as well as the managers have a more precise idea of the
available inventory and can accordingly take decisions.
