Could someone follow up on this topic.. As a small business owner

Could someone follow up on this topic.. As a small business owner,
the buck stops with you on what price to charge for your products, what inventory levels to carry, how much of a product to order, what products to carry, and a thousand other decisions. If you are manufacturing a product, you have to consider various vendors and take into consideration the quality of the different components they supply.
What types of analysis can be done to help with some of these decisions? For example, economic order quantity (EOQ) is one way to determine the optimal quantity to order for each product in order to minimize ordering and holding costs.
Discuss three other types of analysis a small business owner do that can help with decision making on the operations side?
I need for you to respond to each of these post individually 150 words each on what you think and ask questions about the post. Keep in mind I’m a student and don’t respond like I’m the instructor. Say things like the author did this or the writer could have done this etc.
1.
Brittney Williams
When an individual owns and operates a business, there is an incredible amount of responsibility and pressure associated with this choice. Multiple items are addressed daily that affect other issues and so on. When a business owner seeks help to delegate and/or inform them of how to achieve their overall goals, they are able to accomplish a lot more than if they were to do these tasks alone. With the analysis tool that we know as forecasting, data from the past is reviewed and one may then forecast data for the future.
“Inventory carrying cost is 25 percent of a company’s average inventory investment, but when you tally up all the relevant carrying costs, it can run as high as 40 percent or more” (Lord p 1). Inventory, for example, is an unusable expense which is a large reason that capital costs contribute so largely to carrying costs. Opportunity cost is something that one may venture to invest in if their funds are not so unusable because too much inventory is on hand, so inventory turnover is essential. By knowing when to liquidate slow selling products, and assigning inventory carry costs, businesses will see a large increase in profits.
When a company knows that a certain product sells well during certain times, they usually carry inventory of the product during these times to optimize their sales possibility and minimize holding onto inventory that is not selling. Ensuring that the proper inventory is in stock is something that is not only a senior management responsibility, but the chief financial officer and inventory manager’s as this is a strategic function, just only a clerical activity (Barry 2009).
Companies and business owners are using inventory apps such as Inventory+, Daily Sales Tracker 2,3 & Pro, and Goods Inventory. These apps have been developed to aid individuals in multiple ways in regards to their inventory. Aside from mobility, these track profits and losses, includes barcode scanning, iCloud sync capability, and many other fantastic features. A friend and business owner utilizes an inventory app for her clothing store and has found it not only successful but helpful!
2.
dylan dawson
Classmates and Dr. King,
There are so many different types of analysis that can be done for the operational side of business especially for deciding whether or not a vendor is going to be the right fit for you, if you have enough inventory, and management of that inventory.
One way to decide whether a vendor is the right choice for your company is the Total Cost of Ownership Approach or TCO. The TCO approach is extremely comprehensive because it is all encompassing and takes into account all of the costs that are associated with quality, delivery, and service. “TCO is a proactive and comprehensive system. Rather than focusing only on price, it examines issues outside of the supplier’s cost structure.” (Arsan) Since the TCO approach is so complex it is difficult to implement and maintain, it also takes a good amount of time but since it is so comprehensive it is useful.
There are numerous ways to track how whether you have enough inventory or not but I thought that the “blue dot” system sounded simple and functional for almost anyone. The “blue dot” system is simply putting a blue dot next to your best-selling items so that they are easier to identify and requiring that those best-selling items have three to four weeks’ worth of stock each. “About 2% of Village Green’s inventory used to be out of stock at any given time; after using blue dot, that number came down to just 0.5%.” (Girard)
Finally, there is the managing of inventory. Inventory management can be a hassle and inaccurate inventory tracking can happen if inventory management isn’t kept up. The electronic data interchange or EDI and bar code scanning help to fix this problem. “Using electronic data interchange (EDI) and bar code scanning can help eliminate data entry errors. Huppertz suggests implementing a system of so-called “cycle counting.” Choose a few items a day and compare the inventory record to the actual count. Best sellers should get counted more often.” (Girard)
3.
Tyler Barton
Something I have learned from businesses courses but have not been applied to real life or a simulation process is the importance for inventory. In GoVenture, my small business consists of music products for consumers. From the start, I struggled with maintaining an adequate inventory for my customers. Right when I thought I was caught up with supplies, sales sored through the roof and I wasn’t prepared for another shipment. I found it easier to receive stock when my credit limits increased with supplies allowing me to purchase a higher quantity upfront. Small business owners can make some decisions by utilizing different analysis methods for the operational side of the business. There are three methods in particular that I have come across and see useful; ABC method, continuous inventory process, and review non-profiting products.
The inventory process of continuously checking and balancing when making purchases. The thought process behind this is to continuously check the inventory numbers and evaluate from there when to make another supply purchase.
The ABC method assists owners to control the volume of inventory more efficiently. As I have experienced, maintaining an inventory system in GoVenture has been difficult. Dividing products into categories such as genres of music for my virtual business (A, B, C) and organize them by cost and popularity. The first category (A) would a little more expense in products, the second would be the middle ground being in between cheap and expensive, and the third category would be more of the cheaper selection. The first category would consist of a smaller percentage of the overall inventory, second would be a little more than the first, and the third would be the majority. While this method is expressed, I have yet to try this with my virtual business in GoVenture.
As discussed earlier, reviewing inventory is important. Keeping an eye on products that have a shelf life or isn’t selling can be a waste of space and budgeting in an owner’s inventory. My virtual business (music store) has products with a shelf life lasting a lot longer than food at a restaurant would. However, music doesn’t ‘expire’ but can potentially fade out of style or become less popular as new material is produced. Products that fade out or are not selling well isn’t the greatest for an owner and that space and money could be utilized in more popular categories. Keeping track on sales and inventory reports and reviewing periodically as mentioned earlier will help lessen the stagnate inventory occurrence.

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