Question

Watch BNET Video's video titled "Modernizing Inventory Management" on modernizing inventories as used by Cole Hardware:

Click here to open the video in a new window. https://www.youtube.com/watch?v=1do08MAMyAM&sns=em

Explain how Cole Hardware used technology to manage inventory.

Also, identify your favorite retailer and discuss how this technology is or can be employed by your selected retailer.

Finally, what are the accounting implications of having to manage so many different inventory items?

Answer 1

Cole Hardware used the technology of barcode scanning whereby they tagged every inventory item wd a barcode which made the management of the inventory easy by abling them to track the inventory electronically.

Walmart can apply the technology effectively as they have thousands of inventory product placed at different locations.By having the inventory tagged by barcodes they can track down the inventory in hand, its locations, its price & offers on the same.

Main accounting implication of the same is having more accurate inventory stock status and decrease in stock loss.