Analyse poor inventory control through shortages, excess stock, storage cost, waste, lost sales, cash tied up and the effects on business operations.
Extract A Anyone for cricket? Tharindu Jayantha spends most days working for his parents at the family-owned grocery shop in Kandy, Sri Lanka. However, when there is an international cricket match in the country, the 24 year old packs a suitcase and becomes his own boss.
cricket supporters would pay for a souvenir T-shirt, I knew I should change what I was selling." In 2011, Sri Lanka hosted the Cricket World Cup and several matches were played at the Pallekele stadium near Kandy. This was followed in 2012 by another international cricket tournament, the World Twenty20. With the opportunity to put his ideas into practice so close to home, Tharindu was able to make enough profit to allow him to buy more T-shirts and travel to other stadiums in Sri Lanka whenever international cricket teams visited. "Although most of the time matches are only for one day, my expenses are just a sales pitch permit, transport and accommodation, totalling 5400 Sri Lankan rupees (LKR). Lalso pay 650LKR to buy each T-shirt but I have always been able to sell everything," tharindu continued. It can be a problem to carry the I-shirts by myself on the train or bus, especially when there are delays and I have to change transport. I have considered paying someone to help me or even buying my own car but there is a lot of competition so I need to do some sales forecasting before making any decisions."
Extract A Anyone for cricket? Tharindu Jayantha spends most days working for his parents at the family-owned grocery shop in Kandy, Sri Lanka. However, when there is an international cricket match in the country, the 24 year old packs a suitcase and becomes his own boss.
cricket supporters would pay for a souvenir T-shirt, I knew I should change what I was selling." In 2011, Sri Lanka hosted the Cricket World Cup and several matches were played at the Pallekele stadium near Kandy. This was followed in 2012 by another international cricket tournament, the World Twenty20. With the opportunity to put his ideas into practice so close to home, Tharindu was able to make enough profit to allow him to buy more T-shirts and travel to other stadiums in Sri Lanka whenever international cricket teams visited. "Although most of the time matches are only for one day, my expenses are just a sales pitch permit, transport and accommodation, totalling 5400 Sri Lankan rupees (LKR). Lalso pay 650LKR to buy each T-shirt but I have always been able to sell everything," tharindu continued. It can be a problem to carry the I-shirts by myself on the train or bus, especially when there are delays and I have to change transport. I have considered paying someone to help me or even buying my own car but there is a lot of competition so I need to do some sales forecasting before making any decisions."
Analyse two possible effects of poor inventory control for Tharindu.