* Business process; Centralize management; Planning; * * * * So let’s start with the hierarchies. First it’s organization hierarchy. Organization hierarchy is the structure we established in our merchandise system, or RMS, to support the organizational structure of a retailer. There are up to six levels in the OH. On the top it’s company level, here we got Retailer Inc. as example; and at the bottom it’s individual stores or warehouse locations. Between them are multiple levels that allows for maximized flexibility for retailer to group their locations for operation or reporting purpose. They are used to group locations based on the need of retailer; but chain is mostly used to group locations by different format, channel, or concept; while others are mostly used to group locations geographically. The relationship between upper and lower levels are 1 to many. Warehouse is unlike store; it can be attached to any level of the OH for reporting purpose. A warehouse may also have multiple virtual warehouse, which is viewed as a separate groups of inventory within a physical warehouse. Virtual warehouse is normally used in a multi-channel environment and each VW is associated with a channel. For example, you may have a physical warehouse located in Tokyo, and there are 3 VW reside in the PW, one for BM stores, one for .com and one for category sales. And this is Merchandise Hierarchy, which is the structure we created in RMS to support lines of products the retailer manages. It also has up to six level excluding items which are attached to the lowest level subclass. On the top it’s still the company level. Between them are multiple levels that allows for flexibility of how you would like to organize your products. Typically division is the used to distinguish the overall type of the merchandise a retailer offers, like hardline, houseware, apparel, etc. And department is a the level at which key info about how inventory is tracked and reported is maintained. The relat
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