Reference no: EM134024714

Question

Right now, my organization uses a fixed quantity inventory system. When inventory reaches a certain point, more food is ordered. The amount ordered only changes periodically, usually based on season or due to cost increases/decreases from suppliers. During the holiday season, the single period inventory model is used for special holiday items like cranberry sauce, turkeys, stuffing, and gravy. The items may be ordered more than once but are only ordered for a limited time and are typically discontinued earlier than some customers may expect or want as a way to avoid ordering too much and being left with out-of-season goods. I don't think there is a more effective model that can be used for my organization. The fixed period inventory system would not benefit the food service industry because food can sell more slowly or more quickly depending on the week or month. This would lead to shortages and appear inconsistent to the customer. Food typically cannot be back-ordered like other, more expensive items like cars, road bikes, shoes, etc, which is where this model may be useful and not lead to losing business due to a shortage.