For any manufacturing or retail company monitoring inventory is key to the bottom line. Having too much inventory is taking a lost while not enough inventory the demand form the customer will not be met. Companies have to find the balance between the two. Target was struggling with not having enough inventory to stock their shelves. Target like all other retail companies are working always working to find the right balance of inventory. Inventory Processes. According to Targets Annual Report (2017), their inventory method is all inventory and the related cost of sales are accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. …show more content…
According to O'Mara (2015) Target plans to join Google’s online marketplace, known as Google Express, sitting alongside other retailers, Walmart and Costco. This will allow the ability for Target to utilize Googles supply chain network. This has the ability for Target to continue the devilment of their supply chain operations. This also opends the door to build a relationship with other suppliers that may have a better rate or more space. By teaming up with google, Target can work with them to devolve a new and innovated way for inventaory and product …show more content…
With their struggle of keeping stock on the shelves, to issues with shipping vendors these problems were not to be taken lightly. Target did do a good job of identifying the problem and taking the necessary steps of correcting them. By enforcing the new onetime policy, Target is hoping to fix the turn the issue into a strength. After its exit from the Canadian market, Target had to release over 1,700 employees (Strauss, 2015). It was inevitable to let the employees go since the company ended its operations. However, ethics demand that the company was to compensate the employees for the lost income generation opportunity. Additionally, the company was to notify the employees on its plans to release them, and the exercise was to happen in a timely manner. Importantly, labor laws compel the company to compensate the employees accordingly. On suppliers, the company was to honor any existing contract that it had with the suppliers. In the absence of the contract, it was ethical to notify the suppliers of the discontinued