Sunday, February 7, 2016

Solving Inventory Problems for Retailers

Is there a way to track all inventory inaccuracies in many business? Recent developments by professors from the Naveen Jindal School of Management are proposing a new algorithm that may solve inventory problems for businesses in the future. This new technique may be very beneficial preventing theft and spoilage. However, some companies may not solve all their inventory problems using this method. The article mentions how misplacement is a key factor for inventory problems in businesses such as bookstores. It would be pointless for the bookstore industry to spend a large sum of money on this new technology when they can easily fix their problem by being more attentive and organized. One point that is interesting to comment on is that companies are already using technologies to keep track of inventories. But there is a catch. All these inventory technologies are run by humans. Humans are subject to error which makes this method inaccurate. I personally believe that the new algorithm being developed will provide most companies much success in the future. It will allow them to keep track of their inventory more successfully and enables them to pinpoint exactly where they are losing money. 

Something negative that this new algorithm proposes is the cost. It will be extremely expensive for companies to implement this technique. Companies must assess if it will be worth it for them to spend this much money on the new algorithm because it would be a waste for them if it doesn't really work. Businesses will have to become vulnerable to allow the researchers to analyze every aspect of their company and determine how much money will be saved with this method. It will be interesting to see if once these companies implement the new algorithm if it actually succeeds or not. As mentioned previously, I believe it can be successful however there are still some factors that will negate that statement. If a company is loosing their inventory from theft than you cannot necessarily prevent people from continuing to steal. The article is vague in terms of what exactly this technology can do to help prevent the loss of inventory. The question here is are the researchers going to help companies install a better security system to prevent further theft? What does this algorithm entail? I guess the only way we can find how it works is when the researchers stop testing on models and actually start implementing their technology into businesses. 

February 1, 2016
University of Texas at Dallas

1 comment:

  1. For businesses this new algorithm should be very helpful in finding errors when looking at inventory. But is that all it can do? I agree with Lindsay that if the problem for all this inventory error is just misplacement then that is something that can be easily fixed if people just listen and pay closer attention to details. I understand humans are susceptible to human error which is one reason it may be better to use a computer anyway but they should develop a technology that could fix the problem not just tell them what is wrong to begin with. Like Lindsay said, if the problem is theft then people should create something that helps catch thieves therefore fixing the problem. Is this technology worth the cost if all it does is tell you what is wrong and cannot do anything about it? That is one problem I think can be improved and then people will spend the money for this technology.


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