Nordstrom's Perpetual Inventory System
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(Case Code: OPER025) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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OPER025 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 +Shipping & Handling Charges extraThemesInventory
Management |
| Case Length |
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16 Pages |
| Period |
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1994 - 2003 |
| Organization |
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Nordstrom |
| Pub Date |
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2004 |
| Teaching Note |
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Not Available |
| Countries
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USA |
| Industry |
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Retail |
Abstract:
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The case deals with the inventory and merchandise management efforts undertaken
by the US-based specialty retailer Nordstrom during the late 1990s and early
21st century. After providing a brief background of the company, the case
details the problems it landed in by the early 1990s due to the changing
industry dynamics. The case then analyzes how Nordstrom realized that its poor
performance was largely due to its not adopting modern inventory management
practices. Thereafter, the features and implementation of the new perpetual
inventory management system adopted by the company are examined in detail.
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The case ends with information on how
Nordstrom was reaping the initial fruits of its efforts in
late-2003. Finally, it provides information on the two general
inventory models adopted by firms - the P and Q systems.
Issues:
» The role of inventory management in the operations management strategic
framework for retailing companies in general, and for specialty retailers in
particular
» Various inventory models, their features, applicability and their advantages
and disadvantages
Contents:
Keywords:
Inventory, merchandise management, US, Nordstrom, 1990,
background, problems, industry dynamics, poor performance, modern inventory
management, perpetual inventory management system, 2003, inventory models , P
and Q systems
Inventory 'Mis' Management
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