Posted on: April 5, 2018

Whole Foods’ New Inventory System

Whole Foods’ New Inventory System

At VIU, we integrate relevant news into our current curriculum so that students are able to apply what they are learning to what is going on around them.  Dr. Tefera Beyene who is teaching our Managerial Accounting and Finance course reviewed with his class the impacts of the new inventory system that Amazon implemented after they purchased Whole Foods.

This new inventory system is called “track to shelf”. Daniela Galarza points out that the new process has occasionally meant that there are products that are sold out and the shelves are empty (2018).  A few of the noticeable results have been upset customers and a reduction in profits from product sales.  However, it should be noted that the new inventory system may also help reduce storage and spoilage costs. Will the negative complaints outweigh the savings that Amazon sees from spoilage costs? As Dr. Beyene has pointed out that it is too soon to see for sure.  He believes that this will need further study and analysis. What do you think?

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Galarza, Daniela. (2018, January 31). Amazon’s Changes to Whole Foods Mean Empty Shelves, Fewer Local Products.  Retrieved from www.eater.com