Inventory management is a very critical component of the operations of any business. The importance of effective inventory management increases in significance when the business in question is a retail chain. A significant portion of the competitive advantage of a supermarket comes from effective inventory management. One of the most important aspects to consider when comparing the current purchasing strategy with the proposed one is the impact of direct deliveries from external suppliers to the central warehouse on the lead times of spare parts which are ordered by the warehouse planners. Lead times have a big influence on inventory planning and replenishment policies and lead time savings can be very beneficial for the business of a warehouse. The inventory is large because of the nature of retail business. In addition, most of the products are fast moving consumer goods.

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