There is virtually zero paper work involved in merchandising the goods to the shops. The documents prepared when merchandize is sold are minimum and include only check for the customer which is very comfortable and time saving. The sales point prints of all the check kept electronically in the system, only in the evening at the end of the day. The company keeps perpetual track of the records in the system and only at aggregate levels. The company also with employment of the mentioned above electronic system monitors and analyzes the costs incurred to deliver the goods to their sales point. Physical inventory is carried out only once a year, which is reasonable for the company of this size and for electronic system the company utilizes. The physical inventory is done only for the purposes to single out volumes of sold or spoiled products. The company targets to be cost efficient and thus...

As everything is carried out electronically, this helps to save on employees costs to carry out this financial analysis at each retail location, while still enables for high quality professional monitoring.
The Walgreen's company employs LIFO methodology for financial inventory, which reduces the market value of inventories compared to FIFO methodology. High levels of inventories reflect that though the company has very efficient delivery system, full analysis of products with largest inventory dates must be carried out in order to reduce the costs of inventories. This would have not been the case if the company would not been involved in commodities sales, but would deal with durable goods sales.

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