Please, need urgent help with homework

Assume that you are an inventory manager and you notice that a lot of merchandise is being returned. Discuss what might be the possible causes and any action that you might take.
Although you have a hunch of what might be the cause, explain at least two steps you would take to verify your hunch.

I know this is a lot to ask but I wouldn't be if I didn't really need the help and plus I'm just not that smart, so if anyone can help I would be forever thankful.
Anonymous User
Anonymous User
Asked Jul 25, 2011

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The steps would depend on the products and the circumstances.

If it's being returned for in-kind replacement with an obvious defect, require proof of purchase for a return, replace it and take the quality issue up with the suppliers or the store's buyers.

There are people that will buy clothing for a special occasion then return it afterwards. If it's clothing, I'd consider a policy that it must be returned with the tags intact for a refund for clothing. If the tags have been replaced in a different manner or the clothing is soiled in any way, that would indicate they "borrowed" rather than bought it.

If most of it is being brought back for a cash refund, I'd look for an internal theft problem. Example: An employee goes through the outside trash cans and locates sales reciepts for expensive merchandise, steals one then has someone return it for a cash refund. That routine is often thought up by the clean-up crew because of opprotunity. They haul the merchandise out in a trash bin and put it in a dumpster, then come back after the place is closed and retrieve it.

If you suspect it might be a security problem, start asking for positive identification on refunds and try not to refund by cash. Some stores retain the customer's name and the last four numbers on a charge card. You can verify the reciept that way. If it was bought with a card, ask for the card verify the number or do a credit back to the card if they can produce it.

The key is to consider the products being returned, the reasons being given and any other common denominators involved in the returns.

Answered Jul 25, 2011
Edited Jul 25, 2011
All of your generalized questions beg for BS answers.

When a lot of merchandise is being returned, it depends on the product and the reason for the return. Every business has refund policies depending on what they sell. Non-defective, custom made products can't be returned for example. Products that can be returned to inventory in the same condition as when taken out are returnable. One shot products like computer software and wedding dresses aren't refundable.

If the products being returned are defective, you go to the supplier. If they aren't, you look at the promotion and sales people to make sure they aren't being misrepresented. If there is reason to believe there is something dishonest going on, you adjust the policy. It just takes a little logic to figure it out.

Answered Nov 13, 2013

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