Question

How would a typical retailer in Southeast Georgia such as Target or Walmart classify the following inventory items (A, B, C)? Why

1. TP
2. Fresh cut chicken breasts
3. Frozen pizza
4. Hydroxychloroquin (in the pharmacy)
5. Milk
6. Hand sanitizer gel
7. Disinfecting wipes
8. Easter candy
9. Motor oil
10. Watches

Would these classifications change? (Explain: When? Why? How?)

How do these classifications impact the store policies used to manage inventory of these items?

Answer 1

The classification of the inventory will be done as per the following:

Inventory Item A- Toilet Paper (TP), Hydroxychloroquine (in the pharmacy), Hand sanitizer gel, Disinfecting wipes

Inventory Item B- Milk, Fresh cut chicken breasts,

Inventory Item C- Frozen pizza, Easter candy, Watches, Motor oil

These classifications will not change for the time being as long there is the effect of COVID-19. However, after the impact of COVID-19 reduces or gets under control then only these classifications might change.

The classification will help the store to segregate the most important and commonly used items to be brought under the classification A. Secondly, the next classification will house items that are less important than the classification A products. The least important will be kept in the classification C. This will help the store to manage the inventory as per priority and replenish them as per the demand.

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