Inventory management has different applications as per the business model. However, it all boils down to reconciliation of stock, forecasting demand trends and accordingly placing orders so that you never run out of stock. In this research, discussion will be based on a small business model, ‘Thirsty Liquor’, a retail liquor store located in Hamilton, New Zealand. Liquor businesses always face competitive competition as the demand is constant and liquor is available in supermarkets and in a variety of liquor stores. This research focuses on the emerging role of inventory management and the problems faced by the business in implementing this system. For this research, qualitative methods were used and interviews were conducted to gain first-hand information. Personal observations were made. Interviews were conducted with managers of other stores as well.
The outcome of this research highlighted the problem of storage place or a separate warehouse to maintain stock. Poor co-ordination amongst the staff resulted in few suggestions being made based of the gathered input. However, further research on liquor stores all over New Zealand would give an ideal understanding of the inventory management systems used by other retailers.