Tuesday, November 12, 2013
On the business path: Retail-16
There are many inventories tracking software in the market which can you use to track your increases or decrease of inventory if you have a large enough store. And this inventory should be in a place where you can reach them in an emergency and the place should be locked and secure so that the chances of theft are either minimized of eliminated. If need be only one or two employees should be able to access the warehouse so that not many keys go around. If you are planning a small business then you don’t need to worry as you may have some space on the back of your store for the excess inventory. But a big store may need extra storage space and enough inventory on hand so that you don’t run out when you are having a busy season. And here comes another dilemma how do you figure out if you have enough on hand so that you don’t run out and lose money why the goods are on backorder? So how do you know how much to stock when you are just starting out? Tricky right, it depends upon how much money you have for each product. Initially keep ample number of products at hand usually the non perishable types but also perishable ones which are considered necessities and the demand is inelastic. Elastic and inelastic demand refers to change in demand due to change in price of the product. The examples of inelastic demand eggs, milk, butter, shampoo, soap and the like where even if the price goes up, people will be still find money to pay for these goods. These are called necessities of life without which you would be hard pressed if not impossible continue with your life.