Analyzing Local Alcohol Vendor Inventory Management Strategy
Angelo J Amore · Scholar Commons (University of South Carolina) · 2020
This paper attempts to analyze how local alcohol vendors maintain their inventory throughout the year in Columbia, attempting to manage factors such as the season, sporting events, and other public gatherings and events. The research question resulted in contacting over 30 local alcohol vendors in Columbia, to ask them questions regarding their strategy in alcohol inventory management. The responses to these questions were then used to organize the vendors into groups by whether or not they utilize a reorder point to purchase/brew alcohol, or if they utilize periodic ordering. The vendors were also asked to rank the seasons from most to least alcohol sold. The analysis determined that vendors should utilize mathematical models such as the Newsvendor model in order to make accurate predictions to how much alcohol they should order, as opposed to relying on anecdotal evidence to estimate the amount that they should order. The report concludes with three recommendations, including that the vendors should track the amount of alcohol that they order on a periodic basis, implement a model in order to aid with inventory management and demand planning, and conduct an accurate pre and post analysis of performance of the entire process of maintaining records and using models to predict inventory and demand planning. These recommendations all serve to help the vendors become more profitable and more efficient.