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Inventory in Furniture Industry

Systems sometimes use an A, B, C ranking, with the A items being the top 5 percent, the B items the next 15 percent, and the C items the remaining 80 percent. Such a breakdown can help managers determine which items are most profitable, which need extra assistance in order to sell better, and which are appropriate to re-order during the next season.

Season and cyclical analysis is also a key part of the furniture business, since customers purchase some items (such as beds) throughout the year, while other items, such as patio furniture, are seasonal in nature. Identifying and understanding such trends can be critical in terms of creating advertisements and marketing programs.

The marketing department can also be interested in tracking co-operative advertising monies, and some computer systems are able to help in that area. Co-operative advertising takes place when a vendor co-sponsors an ad with a retailer; the vendor's merchandise is featured in the advertisement, and the retailer does not have to fund the entire cost of the ad. The result can be beneficial for both the vendor and the retailer, but retailers can be anxious to monitor the performance of such advertisements and how they perform. Good computer systems help track these cooperative programs.

The three systems each performs the basic task of providing inventory management and sales assistance. However, the tools they use to accomplish those tasks vary widely. The Levitz system, which uses the Unix operating system, is the most flexibility of the systems, and gives customers the ability to choose from more than one hardware vendor. Because Hewlett-Packard and DEC are both committed to remaining in the minicomputer market, and because both are financially healthy, the systems which run on these platforms have an edge over HFD and its outmoded IBM technology.

The cost of these systems is significant, with the American Data and Levitz systems both running in ...

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Inventory in Furniture Industry. (1969, December 31). In Retrieved 00:43, August 21, 2017, from
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