Closed-loop systems for inventory adjustments

An October 1998 Information Week article talks about inventory replenishment systems that support decision making by employees who work in the retail area. Other replenishment processes require the retail area employees to use some form of information technology to notify people in a purchasing department.

Questions:

1. Use the WCA framework to summarize the way Home Depot uses this type of system.

2. Use the architectural characteristics discussed in this chapter to describe the difference between an inventory system such as Home Depot's and a system that assigns all inventory replenishment decisions to a purchasing department.

3. Under what circumstances does this type of system seem appropriate? Where is it inappropriate because risks are too high or for other reasons?

Source:
Turek, Norbert. "Decision Into Action -- Closed-Loop Systems Are Making Retailers More Responsive To Inventory Adjustments," Information Week, October 26, 1998.
http://www.techweb.com/se/directlink.cgi?IWK19981026S0047

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