Organic Food Products For The Environmentally Conscious Consumers Essay

Organic Food Products For The Environmentally Conscious Consumers Essay

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During the recent visit at the Fresh Food People Store, it has been understood that the company provides a great selection of organic food products for the environmentally conscious consumers. The company is a well-known retailer and several numbers of stores are there throughout Australia. Since its establishment, the food is enriched with highest nutrition value. Now the company has applied for listing on the Australian Stock Exchange. All the stores are located different parts of the country including larger towns and major cities of Australia and thus, the company is facing a huge demand of organic products among the regular consumers. Managing inventory effectively for ensuring highest on-shelf availability at their store is the main objective of the company.
The entire onsite inspection took 10 days and three visits were arranged to gather full information about the inventory count of the store.
The Fresh Food People Store has been responsible for retailing and distribution services for the local residents of Cairns. Hence, all inventories are finished goods that are stored initially at the go-down and then such inventories are placed in the shelf of the store. There are two types of risks associated with this business operation including supply chain risks and product related risks. The product may be damaged during the products journey from go-down to store like theft, stolen and so on. Therefore, there is a risk of physical stock inadequacy at the store of the company . Secondly, the growth of the business completely depends on organic food lovers. Thus the risk is associated with the demand of such food items. The company, however, managed risks effectively, which are related to the physical security of the inventory. ...

... middle of paper ...

...physical stock on a regular basis . During the audit, however, the audit team needs to conduct a “spot-check inventory” by choosing the “random sample approach”.

An Inventory Model For Deteriorating Items Using Vendor-Managed Inventory Policy (2014) 27 International Journal of Engineering
Berlemann M and Wesselhöft J, 'Estimating Aggregate Capital Stocks Using The Perpetual Inventory Method ' (2014) 65 Review of Economics
Bernard P, Integrated Inventory Management (John Wiley 2012)
Chen Y, Lu Y and Xu M, 'Optimal Inventory Control Policy For Periodic-Review Inventory Systems With Inventory-Level-Dependent Demand ' (2012) 59 Naval Research Logistics (NRL)
Sui Z, Gosavi A and Lin L, 'A Reinforcement Learning Approach For Inventory Replenishment In Vendor-Managed Inventory Systems With Consignment Inventory ' (2010) 22 Engineering Management Journal

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