Chapter 12 Discussion

Read this and then post your own thoughts and respond to one of your classmates on what types of inventory issues Starbucks might reflect upon at the end of each year?

The mission of Starbucks is to inspire and nurture the human spiritone person, one cup, and one neighborhood at a time. Starting out as a single storefront opened in 1971 in Seattle, Washington, it has expanded to 27,339 stores across 75 countries since its founding. In its fiscal ended October 1, 2017, the number of Starbucks stores increased by 2,254. At October 1, 2017, Starbucks employed approximately 277,000 people worldwide.

From its start as a roaster and retailer of coffee, tea, and spices, Starbucks product offerings have expanded to include several different blends of coffee, handcrafted beverages, coffee- and tea-brewing equipment, mugs, packaged edibles, books, and more. Starbucks beverages and merchandise are also sold at other retail establishments, such as grocery stores.

Starbucks offers a staple menu of coffee and tea beverages year round, as well as a seasonal menu that it continually updates, in addition to developing new flavors and products to offer variety to existing customers and to appeal to new customers. For fiscal year 2017, Starbucks reported net revenues of $22.4 billion, an increase of 5 percent over the pervious fiscal year.

With increasing sales and ever-expanding distribution channels, managing inventory levels and purchasing requirements is crucial. Starbucks must order merchandise with enough lead time to have it in stores ahead of demand. At the same time, it must closely monitor in-store inventory levels so as to not have excess inventory and still have the ability to stock new incoming products.

thinking critically