APPLIED CYCLE COUNTING METHOD FOR GROCERY RETAIL INDUSTRY

Open Access
Author:
Shen, Yue
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Novack, Thesis Supervisor
  • John Spychalski , Honors Advisor
Keywords:
  • supply chain management
  • cycle counting
  • inventory accuracy
  • grocery retail industry
  • inventory management
  • replenishment
  • inventory system
  • computer based inventory management
  • grocery stores
Abstract:
Grocery stores play an important role in people’s daily lives and they have one of the most complex inventory systems for management. Most grocery stores start using the computer based inventory management system nowadays to manage their inventory replenishment. More importantly, they use floor level cycle counting frameworks in different stores to secure inventory accuracy. However, there always are mismatches between computer counting and physical counting, which causes inventory inaccuracy and out-of-stock problems. This thesis will seek to develop a modified cycle counting method based on analyzing an industry leading company’s current cycle counting methods. The revamped cycle counting method should reduce the attempts for physical cycle counting by classifying products into different categories, which will not only decrease the cycle counting cost but also increase the efficiency and accuracy of the overall procedure. This thesis will also conclude by offering recommendations for future research including a more statistically based template to deal with uncertainties occurring in different stores, to achieve an optimal cycle counting standard to use in the grocery retail industry.