are two accurate solutions in order to correctly
assess inventory levels: RFID (Radio Frequency
Identification) and POS systems. The first option
is RFID (Radio Frequency Identification), which
uses an inexpensive chip that is present on each
product/pallet in order to establish its location.
It’s a technology that has been used by major
package delivery companies such as UPS, FedEx,
and DHL in order to know where each of their
packages is at any time. Using this system in
retail stores provides them with the necessary
information to know when a shelf should be
restocked. The stores who have implemented
this system have seen great improvement in their
overall OSA (Hardgrave, Sangford, Waller, & Miller,
2008).
Despite the accuracy and great successes of the
chip, sadly many stores haven’t implemented
this yet due to the investment barrier related to
this tool. The outlets who have introduced this
tool have only gone so far as to using it for pooled
packages (pallets and cases) because the scale
resulting from full implementation. RFID has been
unpopular in the industry despite its promising
results. (Gruen & Corsten, 2007)
As an alternative to RFID many retailers opt for
the POS system. Studies show that these systems
provide correct results 85% of the time.
This is often a better solution than manual reviews where human
inaccuracy is a main cause of false inventory data. A significant innovation pertaining to the maintenance of PI data is the improvement of POS systems (which are now fully electronic) making them
able to recognize clear patterns of OOS and thus detect potential
sources for the problem. (Gruen & Corsten, 2007) A research done
by TIBCO (2011) confirms this by stating that POS monitoring is the
most up-and-coming answer to the OOS problem.
One of the eyecatching advantages of the POS would be the
option to use of the Rule-Based System. This system utilizes data
gained from the different electronic systems throughout the
store by using Machine Learning algorithms (use of A.I.) to derive
rules for the supermarket determining the best times, amounts,
products etc. to order. The Rule-Based System has proven its
efficiency and usefulness in daily practice. (Papakiriakopoulos,
2010)
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