Company Q Inventory Control

A, has recently made business decisions that appear to be attempts to protect the company by minimizing losses. Closing two stores in high crime areas, and declining to donate day old products to local food banks due to the possibility of fraud and concerns of employee theft may initially help Company Q’s bottom line, the passive attitude toward social responsibility will have a much greater negative impact on the company in the long run.
In closing the two stores in high crime areas, Company Q initially may have eliminated losses in those two stores due to theft, vandalism and other crimes. And although this initially appears to have a positive impact as far as protecting the company and its investors, it also completely removes any chance

Develop tighter standards for inventory control. Work with suppliers to account for incoming inventory and compare stock levels to sales to determine losses. Identify ways implement loss control measures such as security, both physical and electronic surveillance, employee engagement with customers, and through ethics training with employees to prevent internal losses. Utilize inventory control measures further to develop a charitable donations program to allow donations of day old products to local food banks and other organizations such as schools, churches and for community fundraising events. For example, inventory day old products creating a list of items to be donated. Have inventory signed off by at least two members of staff, one of which should be a supervisor or store manager. Have a representative of the receiver of the donation review the list for accuracy and also sign off on the inventory list. Donation lists can then be used for regular inventory tracking and also as tool for proving tax deductible charitable donations for the company. This will foster higher ethical behavior for the company’s staff, lower losses due to consumer theft, and begin to create an environment of community involvement and charitable