Retail Inventory Control Strategies

Retail Inventory Control Strategies by Mackie L. Johnson MBA, Ashford University, 2014 MSM, University of Management and Technology, 2009 BS, University of Phoenix, 2008 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2016 Abstract Despite using computerized merchandise control systems in retail, the rate of stockouts has remained stagnant. The inability to satisfy customer needs has caused a loss of 4% in potential revenue and resulted in dissatisfied customers. The purpose of this qualitative multiple case study was to explore cost-effective inventory control strategies used by discount retail managers. The conceptual framework that grounded the study was chaos theory, which helped identify why some business leaders rely on forecasting techniques or other cost-effective strategies as an attempt to prevent stockouts. The target population was comprised of discount retail managers located throughout northeast Jacksonville, Florida. Purposeful sampling led to selecting 6 retail managers who successfully demonstrated cost-effective inventory control strategies for mitigating stockouts. Data were collected through face-to-face semistructured interviews, company websites, and company documents. Analysis included using nodes to identify similar words and axialcoding to categorize the nodes into themes. Transcript evaluation, member checking, and methodological triangulation strengthened the credibility of the findings. Five themes emerged: (a) internal stockout reduction strategies, (b) external stockout reduction strategies, (c) replenishment system strategies, (d) inventory optimization strategies, and (e) best practices for inventory control. This study may contribute to positive social change by improving inventory management, which may reduce demand fluctuations in the supply chain and reduce logistics costs in the transportation of freight thereby leading to improved customer satisfaction.Despite using computerized merchandise control systems in retail, the rate of stockouts has remained stagnant. The inability to satisfy customer needs has caused a loss of 4% in potential revenue and resulted in dissatisfied customers. The purpose of this qualitative multiple case study was to explore cost-effective inventory control strategies used by discount retail managers. The conceptual framework that grounded the study was chaos theory, which helped identify why some business leaders rely on forecasting techniques or other cost-effective strategies as an attempt to prevent stockouts. The target population was comprised of discount retail managers located throughout northeast Jacksonville, Florida. Purposeful sampling led to selecting 6 retail managers who successfully demonstrated cost-effective inventory control strategies for mitigating stockouts. Data were collected through face-to-face semistructured interviews, company websites, and company documents. Analysis included using nodes to identify similar words and axialcoding to categorize the nodes into themes. Transcript evaluation, member checking, and methodological triangulation strengthened the credibility of the findings. Five themes emerged: (a) internal stockout reduction strategies, (b) external stockout reduction strategies, (c) replenishment system strategies, (d) inventory optimization strategies, and (e) best practices for inventory control. This study may contribute to positive social change by improving inventory management, which may reduce demand fluctuations in the supply chain and reduce logistics costs in the transportation of freight thereby leading to improved customer satisfaction. Retail Inventory Control Strategies by Mackie L. Johnson MBA, Ashford University, 2014 MSM, University of Management and Technology, 2009 BS, University of Phoenix, 2008 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2016 Dedication I dedicate this study to my family for the unwavering support and sacrifice throughout this research process. First, I would like to dedicate this study to my wife, Pamela as she has provided me the strength to continue through the completion of this doctoral journey. I also owe a debt of gratitude and dedication to my mom, Jan as she has instilled in me the importance of education and hard work from the very beginning. Finally, I would like to express gratefulness by acknowledging and dedicating this study to by brother Adrian, my cousin James, and my grandmother Gracie who have all believed in me and supported all of my life’s endeavors. Acknowledgments I owe sincerest gratitude to my chair and fellow submariner, Dr. Peter Anthony. Your mentorship, words of encouragement, and feedback have been nothing less than amazing. Also, thank you for your tireless support and understanding in balancing military obligations with college. I also would like to thank my second committee member, Dr. Jamiel Vadell. Your insightful feedback has really made a difference in providing a study that I can really be proud of. I also owe sincere gratitude to my University Research Reviewer (URR), Dr. Charlotte Carlstrom. I am humbled by your toughness and critical analysis, which has vastly improved the quality and scholarship of this study. I would also like to thank Dr. Freda Turner for her support and positive encouragement. Additionally, I would like to thank Holley for her assistance with data analysis software and Dr. Deane Desper for his coaching expertise during the rough times. Last, I would like to pay my respects by acknowledging my boss, LCDR Dave Adams. Thank you for supporting my goals and for giving me time off whenever needed and without question.