Question
Introduction: In the dynamic world of retail, efficient inventory management is essential for businesses to meet customer demands, optimize stock levels, and drive profitability. This
Introduction: In the dynamic world of retail, efficient inventory management is essential for businesses to meet customer demands, optimize stock levels, and drive profitability. This case scenario delves into the intricacies of Tech Haven's Inventory Management Subsystem, showcasing how it plays a pivotal role in overseeing stock levels, order fulfillment, and product availability. The Tech Haven Inventory Management Subsystem guarantees seamless operations and improves the general customer experience by interfacing with other subsystems within the business. Case Scenario John, a customer, walks into an electronics retail store called "Tech Haven", looking to purchase a new smartphone. As he enters the store, he is greeted by a sales representative named Sarah, who welcomes and asks how she can assist him. John explains that he is interested in the latest smartphone models and wants to compare their features and prices. Sarah guides him to the smartphone section of the store, where they have a wide variety of models on display. Sarah uses her knowledge of the products to provide John with detailed information about each smartphone, including specifications, camera quality, storage capacity, and battery life. After discussing the options, John selects a smartphone and asks about ongoing promotions or discounts. Sarah checks the store's sales and customer service subsystem, which is integrated with the point-of-sale (POS) system. She confirmed that there was a special discount available for the model John had chosen, and she proceeded to scan the product using the POS system. The POS system retrieves the current price, applies the discount, and calculates the final amount to be paid. Sarah informs John of the discounted price and asks if he would like to proceed with the purchase. John agrees and chooses to pay with his credit card. Sarah completes the transaction using the POS system, which securely processes John's payment. The POS system generates a receipt, which Sarah hands to John along with the smartphone, its accessories, and the warranty information. Meanwhile, in the inventory management subsystem, the system automatically updates the inventory levels, reducing the quantity of the purchased smartphone in stock. The system also generates a report, indicating the sales of the smartphone and updating the store's sales data. Additionally, Tech Haven has an online ordering and delivery subsystem. Customers like John have the option to browse and purchase electronics products through the store's website. They can access detailed product information, compare prices, and read customer reviews. Once an online order is placed, the system sends the order details to the warehouse or fulfillment center. In this scenario, since John made his purchase in-store, the online ordering and delivery subsystem is not directly involved. However, if John had chosen to order the smartphone online, the subsystem would have processed his order, generated a shipping label, and tracked the delivery until it reached his specified address. 1. Inventory Management Subsystem FUNCTION Tech Haven's Inventory Management Subsystem monitor product stock levels, handles orders and fulfillment, and ensures product availability to satisfy consumer demand effectively. PROCESSES Tracking product stock levels: This procedure entails real-time updates and stock level monitoring to guarantee correct inventory records. Order fulfillment: The subsystem oversees the selection, packaging, shipment, or delivery of goods to clients, as well as the overall order fulfillment process. STOCK REPLENISHMENT The subsystem creates purchase orders to replenish stock levels when inventory hits a minimal threshold by configuring reorder points and triggers. Inventory checks and corrections: Frequent checks are carried out to confirm actual inventory counts versus recorded levels, and corrections are made for correctness as appropriate. Data that the Inventory Management Subsystem uses: The subsystem uses a variety of data sources, such as the product catalog, which contains descriptions and stock levels; order information, which includes goods and customer details; and supplier details, which include lead times and contact information. Inventory Management System (IMS) technology components: An Inventory Management System (IMS) provides effective stock tracking and management for the subsystem. integration with a warehouse management system (WMS) may be used for efficient warehouse operations. Online ordering and supplier communication are used more in a supplier portal. Interactions of the Inventory Management Subsystem: The subsystem communicates with the customer service and sales subsystems to obtain sales data and adjust stock levels appropriately. Product sales data can be recorded via interaction with the POS system, which may also be used to initiate restocking when the stock drops below a predetermined level. When necessary, the subsystem works with the online ordering and delivery subsystem to coordinate with the warehouse or fulfillment center to receive and process online orders. 2. LIST OF BUSINESS PROCESSES A. DRAFTS AND QUERIES: Figure 1 DRAFTS AND QUERIES B. CRITIQUE THE FINAL OUTPUT When improving the queries to get appropriate business processes for the inventory management subsystem, I focused on the crucial components of the subsystem, such as inventory tracking, stock replenishment, and demand forecasting. By applying the idea of business process ingredients, I was able to eliminate procedures that were not appropriate and make sure that the processes that were chosen improved inventory management. Since the selected business processes take care of the essential duties and responsibilities of inventory management, they are appropriate for the inventory management subsystem. To help avoid stockouts and overstock situations, real-time inventory tracking, for instance, guarantees precise and current information on stock levels. By anticipating future demand and modifying inventory levels appropriately, demand forecasting helps to lower risk. Revision of the final response: Demand prediction helps organizations anticipate future demand and adjust inventory levels appropriately, reducing the risk of excess inventory or supply shortages. All things considered, the completed business procedures are in line with the goals of the inventory management subsystem and are intended to improve the general efficacy and efficiency of inventory management activities.
C. FINAL BUSINESS PROCESS
? Tracking inventory in real-time ? Reorder point-based stock replenishment. ? Demand prediction and inventory management. ? Managing supplier relationships to ensure on-time delivery. ? For accuracy, use cycle counts and inventory audits.
3. Case function matrix for Inventory Management subsystem A.
CASE TYPE
? Customer initiates purchase (in-store or online) ? Stock level check. ? Product return ? Inventory audit.
B. FUNCTIONS
A. Receive sale data (in-store)
B. Manage order sales (online or in-store)
C. Generate purchase order.
D. Update stock levels.
E. Verify return eligibility.
F. Process exchange.
G. Update inventory data.
C. CASE/FUNCTION MATRIX
Business functions Case Types Customer initiates Stock level Product return Inventory audit Receive sales data Online Instore purchase Update stock level Check stock Check for return/eligibility Generate purchase Update inventory
D. Processes in the Case/Function Matrix:
1. Receive sale data (in-store) 2. Manage order sale (online or in-store) 3. Generate purchase order. 4. Update stock levels. 5. Verify return eligibility. 6. Process exchange. 7. Update inventory data.
F. Changes to Improve the Case/Function Matrix
I would recommend the following adjustments to the case/function matrix to better fit the scenario:
? To distinguish product returns from normal sales data handling, include a separate function for tracking returns.
? Supplier management is essential for keeping stock levels in check and quickly completing orders, include a feature for managing supplier relationships to guarantee on-time delivery.
? Introduce a function for demand prediction and inventory management, To emphasize how important it is to forecast and modify inventory levels based on anticipated demand.
? To facilitate maintaining ideal inventory levels and replenishing easier, think about adding a feature for demand forecasting-based stock replenishment triggers.
4. A. Business Process Model/BPMN diagram
B. Ingredients of the business process.
The following are the components of the business process in the given scenario Events:
? Start event (customer initiates purchase): This Triggers the beginning of the process when a customer starts a purchase.
? End event (processes complete): Marks the completion of the inventory management processes. ? Timer event (inventory audit): Triggers the periodic inventory audit process.
Activities:
? Receive sales data: Involves receiving data related to sales, such as product information and pricing.
? Update stock level: Activity to update the stock levels based on sales, returns, and audits.
? Check stock level: Activity to verify the current stock level against the reorder point.
? Generate purchase order: Activity to create a purchase order when stock levels are below the reorder point.
? Verify return eligibility (sub-process): Sub-process to handle return or exchange requests and determine eligibility.
? Conduct inventory audit: Activity to perform periodic audits of the inventory.
? Update inventory data: This is an activity to update inventory records based on sales, returns, purchase orders, and audits. Gateways:
? Exclusive gateways: Used for decision-making processes such as determining whether the purchase is online or in-store, checking if stock is below the reorder point, and verifying if a return/exchange is requested.
? Parallel gateway: Allows for concurrent execution of activities, such as stock level check and return/exchange check.
? Synchronize gateway: Ensures the process waits for both parallel branches to complete before proceeding. Sequence Flows:
? Define the execution order between activities and gateways, showing the flow of the process from one step to the next.
Data Objects:
? Sales data (stock levels): Data related to product sales, including stock levels.
? Purchase order: Data object representing the creation of a purchase order for restocking.
? Return/exchange request: Data object indicating a customer's request for a return or exchange of a product. These ingredients play crucial roles in defining the flow, decision points, data handling, and completion of the inventory management processes at Tech Haven.
C. Explanation
The BPMN diagram showcases how the inventory management subsystem functions at Tech Haven. It begins with a customer initiating a purchase, either in-store or online. In the case of an in-store purchase, sales data is collected from the POS system, and stock levels are immediately updated. The process then diverges into two parallel paths:
1. Stock Level Check: This path verifies if any product's stock level has dropped below its reorder point. If this condition is met, a purchase order is automatically generated to restock the item.
2. Return/Exchange Check: This path examines if there are any return or exchange requests. If a request is identified, the system confirms the return eligibility. This step may involve a sub-process to manage the return/exchange process and update stock levels accordingly. Once both paths are completed (synchronized gateway), the process may include a periodic inventory audit triggered at specific intervals. This audit physically verifies the stock levels and accurately updates the inventory data. Finally, when all inventory management tasks are finished, the model concludes.
5. CONSTRUCTIVE REFLECTION Description: The task involved a detailed analysis of the inventory management subsystem within a retail store setting. This exploration encompassed understanding the interconnected processes of sales, customer service, and inventory management, with an emphasis on how technology helps to streamline operations.
Sensation: At the outset, I felt a mix of curiosity and anticipation, eager to delve into the intricacies of inventory management systems. As the analysis progressed, a sense of accomplishment and satisfaction arose from unraveling the complexities and gaining insights into the operational dynamics.
Evaluation: The exercise underscored the importance of systematic breakdowns in understanding complex systems and the application of business process management principles. It provided a valuable perspective on the critical functions of the inventory management subsystem and its impact on overall business efficiency.
Analysis: Upon reflection, I recognized the significance of bridging theoretical knowledge with practical implementations. The hands-on experience in constructing case function matrices and developing BPMN diagrams enhanced my ability to visualize and map out intricate business processes effectively.
Conclusion: Through this immersive experience, I deepened my understanding of inventory management practices in a retail context. The exercise emphasized the need for tailored solutions and adaptive strategies to align AI-generated outputs with specific business requirements for optimal performance.
Action Plan: In future analyses, I aim to explore the integration points between subsystems to gain a comprehensive view of retail operations. Additionally, I plan to delve deeper into the external factors influencing inventory management, such as supply chain dynamics and customer demand patterns, to enhance strategic decision-making processes. In summary, the exercise provided valuable insights and practical skills in navigating the complexities of inventory management systems, fostering a deeper appreciation for the interconnected processes within a retail environment.
References: Zhang, Y., and Q. Feng (2018). Inventory Control: Procedures, Methods, and Tools. Evans, J., and Berman, B. (2019). Integrating Systems, People, Activities, and Information in Retail Operations Management. Johnson, M., and Smith, A. (2020). Inventory management's function in retail operations.
Make a assignment using above information
a). Revise your modelled business process in last assignment according to the received feedback. Include the revised process diagram in the report and list the changes you have made.
b). only take a inventory management subsystem as a fragment for further. Each fragment should represent a major business operation of the modelled business process. Add proper start and end events to the process fragments to make them complete process models. Insert the three process models in the report.
c). Provide an explanation of how each of the process models created in part (b), adhere to Mendling et al's (2010) 7PMG guidelines. Each student works on one process.
d). Consider each model produced in part (b), calculate the process cycle time for each of the two (2) processes modelled. Any assumptions made should be documented in the report. Each student works on inventory subsystem fragment.
e). Use redesign techniques by Reijers and Mansar (2005) discussed in lectures, to identify any two (2) design flaws in the as-is models created in part (b). Use heuristics and any appropriate productbased design approaches and display the impact of any heuristic measures on the Devil's Quadrangle. Document any assumptions in the report. Each student works on process.
f). Select one of the models created in part (b) for automation. Apply the five (5) step method to transform the model into an executable form. All students work together on this.
g). Each team member adds a one-page long self-reflection to the report. This reflection should cover the following points.
i) How have you applied the knowledge learned from our course to accomplishing the process modelling assignment and this process-analysis-and-redesign assignment?
ii) Your personal insights into the learned knowledge from our course.
iii) How you feel such knowledge may help you in your professional career in future? A suggested template for the report is provided. You can use it as a guideline for presenting your business
report .
make assignment according to this rubris
1.Process Model Revision and process models 20% : All the mistakes are corrected properly. Comprehensive and correct control mechanisms are applied
2. 7PMG Discussion 10% :Excellent discussion on the topic in the given context. Fully correct and relevant to the scenario.
3. Cycle time calculate on 15% :Fully correct calculate on, clear and logical mathematic steps
4. Process Redesign 20%: Excellent discussion on the topic in the given context. Fully correct and relevant to the scenario
5. Automation 15% :Excellent discussion on the topic in the given context. Fully correct and relevant to the scenario.
i put two diagram one is normal but in second i made a changes . can you explain it
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