BUS 644 Week 5 Alliance Supermarket and Point-of-Sale (POS) systems – Case Study

Read the “Alliance Supermarket” case study in
Chapter 10 of your text.


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 treat 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:


  1. 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.


  1. Describe any information that may help Alliance reduce
    costs while providing better service.


  1. Propose a new approach that could be used by Alliance
    by using the purchase information that can be obtained on individual


  1. Assess ethical and privacy considerations of
    information gathered from the POS system or purchased items.


Your paper should be in paragraph
form (avoid the use of bullet points) and supported with the concepts outlined
in your text and additional scholarly sources.

 Paper should have “introduction” page.


Submit your four- to five-page paper
(not including the title and reference pages). Your paper must be formatted
according to APA style and must cite at least three scholarly sources in
addition to the textbook.

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