National Furniture uses an inventory tracking and shipping system designed by Amy Spreadsheet.  Amy's background as an accountant in the furniture business has given her substantial industry-specific experience with such systems.  She purchased a software package designed by ABC Consultants specifically for use in the furniture industry, and tailored it to meet the company’s specific needs.

National Furniture produces and ships several million dollars worth of inventory each year and deliveries are made on a daily basis.  The company has limited production capability, so ability to supply the demand and warehousing needs is calculated according to production schedules.  (For more information on this process and the proposed changes, please see the Operations Analysis section of the Operations chapter of this plan.)

Inventory is secured against theft and fire through advanced systems.  A state of the art sprinkler system that sprays fire retardant chemicals was installed two years ago, and is checked every six months.  The area of the warehouse where the inventory is stored is double dead-bolted with top locking mechanisms on the two doors, the outer one is steel.  National Furniture has never had a damaging fire or robbery, and is well protected against such contingencies, by maintaining paid up insurance policies.

As furniture sales were approximately $12 million, National Furniture has made efficient use of it’s inventory space, turning over it’s entire inventory approximately twice a month.  Although National Furniture apportions value to it’s inventory space on cost of goods sold (see the Assumptions section of the Finances chapter of this plan for more information), it also tracks it’s inventory turnover based on the value of the finished product.  The warehouse, when operating at capacity, can hold approximately $500,000.00 worth of finished product.  As furniture sales were approximately $12 million, the inventory turns over about once every 2 weeks.