Running Head: ALLIANCE
SUPERMARKET AND POINT-OF-SALE (POS) SYSTEMS
Read
the “Alliance Supermarket” case study
Alliance Supermarkets
Alliance Supermarkets has been
using a point-of-sale (POS) system for some time to track its inventory. The
system uses a laser scanner to read the universal product code (UPC) on each
item at the checkout container. The UPC is a number that uniquely identifies
the product on which it appears. Currently, Alliance is using the UPC
information to update inventory records for each item. Although the system has
greatly improved the company’s ability to replenish inventory promptly, the
company still has some problems. For example, sudden changes in demand for a
particular item can catch the company by surprise as it bases inventory
replenishment on historical demand patterns. Further, demand patterns and
preferences may vary from one store to another depending on the customers
served by each, but the inventory system groups all demand information together
and treats each store equally. Finally, the manufacturers that make the
products stocked by Alliance Supermarkets are always pressuring Alliance to
help them target appropriate customers for special promotions and sales.
The chief information officer
(CIO) of Alliance realizes that much more could probably be done with the data
collected from its POS system. For example, the company could analyze the
relationship between each product’s sales and weather patterns. It is even
possible to analyze an individual customer’s buying habits and identify
instances in which a customer may be persuaded to try a different brand of a
certain product.
For
this assignment be sure to address the following points:
a.
Study this situation and
formulate new and innovative uses of the information from the POS system.
Ideally, these ideas should help Alliance better serve its customers by
ensuring that adequate quantities of each item are available, that costs are
kept low, and that customers are made aware of new products that may interest
them.
b.
Describe any information that
may help Alliance reduce costs while providing better service.
c.
Propose a new approach that
could be used by Alliance by using the purchase information that can be
obtained on individual customers.
d.
Assess ethical and privacy considerations
of information gathered from the POS system or purchased items.
Your papershould be in paragraph form (avoid the use of
bullet points) and supported with the concepts outlined and additional
scholarly sources
