Sample Essay
The pull strategy should be based on properly managed inventory levels. This implies that all buffer stocks are kept depending on the prevailing consumer demand and lead time properly managed so that there are no delays. According to Weber and Aburto (1), supply chain management affects all agents of change and it is thus very essential especially for supermarkets to apply advanced technologies so that they are able to maintain a highly competitive stance. Thus, a hybrid intelligence system is very effective for managing demand forecasts.
By definition a supermarket is one that stocks about 5000 stock keeping units relevant to the product width and length. Likewise, the prices should be competitive in a manner that they are quite adequately penetrated so as to lure buyers away from competition in the market. For this to happen the retailers need to decide the quantities of inventory levels kept at one point in time, that is, how much to buy and when the transaction should be made.
For this to be managed effectively, future demand has to be judged based on past sales trends and consumer buying behavior. Other factors would include advertising and promotion, seasonal demand and competitors’ initiative etcetera.
For hybrid intelligence systems, neural network system can be termed as one of the most accurate. These are mathematical models devised to extract varying patterns from the available data and assist in achieving regression and classification data. Neural networks thus help in time series analysis and thus pave way to cost savings in terms of inventory levels.
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