We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
2/4 steps

How Many Pages?

3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Get Offer

Starbucks Inventory Paper

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Starbucks Coffee Company is a gourmet coffee provider with over 17,000 stores in 55 countries worldwide in fiscal year 2011 (Starbucks Company, 2011, p. 3). Its main focus is to provide gourmet coffees, teas and related beverages in its stores worldwide. To ensure that Starbucks continues to provide superior products and services, it must ensure that it has in its stores enough inventory to service its valued customers, without sacrificing quality and with decreasing the possibility of waste.

Starbucks inventory numbers can be derived from its financial statements; however, the numbers given are only a summary as the actual details are proprietary and cannot be retrieved through any other method.

Don't use plagiarized sources. Get Your Custom Essay on
Starbucks Inventory Paper
Just from $13,9/Page
Get custom paper

The Starbucks inventory reserves were $25. 5 for 2008, $21. 1 million in 2009; $18. 1 million in 2010, and $21. 1 million in 2011. “Inventory reserves are based on inventory reserves are based on inventory turnover trends, historical experience and application of the specific identification method” (Starbucks, 2012).

In greater detail, Starbucks inventories for 2008, 2009, 2010, and 2011 are as follows: Inventory in Millions (in millions): | 2008| 2009| 2010| 2011| Coffee – Unroasted| $377. 7| $381. 6| $238. 3| $431. 3| Coffee – Roasted| $89. 6| $76. 7| $95. 1| $246. 5| Other Merchandise held for sale| 0.

6| $116. 0| $115. 6| $150. 8| Packaging & other Supplies| $104. 9| $90. 6| $94. 3| $137. 2| Total| $692. 8| $664. 9| $543. 3| $965. 8|

Starbucks’ level of inventory vary depending on seasonality and commodity price variations. Further, since Starbucks contracts with its suppliers, it purchases certain amounts based on fixed contracts (Starbucks, 2012). An interview with a former Starbucks Manager, Anthony Costa, provided information that Starbucks uses the P-system. The P-System or Periodic System is a system wherein the sock is reviewed based on its par which is a certain level of inventory. For example, a box of cups is a par of cups.

Every seven days managers check the inventory and order the appropriate numbers of par they need for the following week. The ordering system typically requires 3 day lead time. The desired inventory is just enough to have a little overage based on customer demands. Too much inventory can be wasted, especially in ordering perishable items such as milk and other dairy products. Lastly, according to Mr. Costa, Starbucks uses its labeled Starbucks cups as an inventory control.

Management measures sales based on Starbucks labeled cups. Every day, management counts the cups and balances them with the sales compared to the actual cups used. At times when cups are missing, it could be due to waste, mistake, customer service or theft. Each missing cup is the responsibility of the cashiers and the management. Reference Starbucks Coffee Company. (December 2011). Starbucks 2011 Annual Report. Retrieved from http://starbucks. com/investorrelations/fy11annual_report

Cite this Starbucks Inventory Paper

Starbucks Inventory Paper. (2017, Jan 06). Retrieved from https://graduateway.com/starbucks-inventory-paper/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page