Read the following case study based on Starbucks and answer the questions that follow. Not all the answers can be found in the case study, you may be required to conduct additional research.

What inventory management system does Starbucks use? What inventory management system does Starbucks use? With the nature of the business the finished goods tend to be perishable inventory, Starbucks uses a P-system and a EOQ system for inventory management on a store level. This system helps the company reduce unnecessary waste and shrinkage within their inventory. How does Starbucks keep track of inventory? To adequately manage its store level inventory, Starbucks draw on EOQ system and the P-system. ... Programmed computer are used to track inventories at sales point registers. Most of Starbucks inventory ordering and shipments assume two ways. P-system is used in the retinal stores. What is the system of Starbucks? Starbucks Coffee Company ltd uses a Management information system called IRIS. IRIS stands for Intelligent Restaurant Information System. The Manager Work Station (MWS) or back of house computer system compiles and reports all store information to effectively manage all aspects of store business. Does Starbucks use just in time inventory? Starbucks currently uses J-I-T inventory management to ensure highest qualities. Does Starbucks use Oracle? Starbucks had built its point-of-sale data warehouse on Oracle technology. It also uses Oracle Exadata Database Machine to scale and seamlessly migrate its existing data warehouse to Exadata to expand insight and facilitate decisions, even with big data, according to Oracle. What does POS mean in Starbucks? Point of Sale Point of Sale (POS) Does Starbucks use outsourcing?

A cost analysis revealed excessive outlays for outsourcing; 65 to 70 percent of Starbucks' supply chain operating expenses were tied to outsourcing agreements for transportation, third-party logistics, and contract manufacturing. How does Starbucks manage its store level inventory? Inventory management. To adequately manage its store level inventory, Starbucks draw on EOQ system and the P-system. The schemes aid Starbucks to curtail stock declines and redundant ravage. Programmed computer are used to track inventories at sales point registers. Most of Starbucks inventory ordering and shipments assume two ways. What's the policy for Overstock in Starbucks stores? Starbucks' policy for inventory is to maintain 15% overstock, to ensure stores are always able to meet customer demand (Team 1 Starbucks, 2010). Inventory is replenished from point of sales data. The ordering system is also attached to the delivery company serving the stores, so that preparations for shipments can be made. What kind of POS system does Starbucks use? Whether its recognizing the need for a new store or sending customers tailored offers based on their buying habits, Oracle allows Starbucks to get the most out of its customer data. But were forgetting the basics that Oracle is simply an easy to use POS system. How often does Starbucks use the p System? The P system is used for coffee bean orders and other items, like bottled water. The EOQ system is used for materials like coffee cups, milk, coffee cakes, and espresso. The P system orders supplies every seven days. The EOQ system is used daily to maintain adequate levels of stock.

Source: Actingcolleges.org. What inventory management system does Starbucks use? [Online].

Q.2.1 Starbucks sells many cups of coffee daily. Argue the importance of inventory management for such an organisation. Note: You are required to explain the importance of inventory management then relate it to the context of Starbucks.