Inventory Management: RMS should focus on implementing an inventory management system that can provide them with real$-$time visibility into their inventory levels. This will allow them to better manage their inventory and avoid stockouts or overstocking. Leveraging IT in this area can help automate the process of tracking inventory levels, generating reorder points, and managing inventory movements. RMS can use barcode or radio$-$frequency identification $($RFID$)$ systems to track inventory, and implement a centralized database to store inventory data. This will enable them to make better$-$informed decisions about inventory management and improve their overall operational efficiency.

Sales Analysis: RMS should reduce their emphasis on certain categories of music that are not performing well and focus on those categories that are generating higher sales and customer demand. Leveraging IT in this area can help RMS analyze sales data more effectively and identify trends. For example, RMS can use sales data analytics tools to identify which categories of music are generating the highest sales and customer demand. This information can help RMS make more informed decisions about inventory management and product assortment.

Overall Gross Margin: The overall gross margin as presented in the case study appears to be relatively low compared to the industry average. RMS can improve the reliability of calculating the overall gross margin by implementing an automated system for tracking and managing sales and inventory data. This will help ensure that all sales and inventory transactions are accurately recorded, and the gross margin can be calculated more reliably. RMS can use IT to implement a centralized database to store sales and inventory data, and use sales data analytics tools to generate reports on gross margin performance. This will enable them to identify areas where they can improve gross margin performance and make more informed decisions about product assortment and pricing strategies. Final answer: Overall, leveraging IT can help RMS improve their inventory management, analyze sales data more effectively, and calculate the overall gross margin more reliably. This will enable them to make more informed decisions about product assortment, pricing strategies, and inventory management, and improve their overall operational efficiency and profitability.