Problem
Rabatt operates deep-discount stores offering housewares, cleaning supplies, clothing, health and beauty aids, and packaged food throughout Germany, with most items selling for 1 euro. Its business model calls for keeping costs as low as possible. The company has no automated method for keeping track of inventory at each store. Managers know approximately how many cases of a particular product the store is supposed to receive when a delivery truck arrives, but the stores lack the technology for scanning the cases or verifying the item count inside the cases. Merchandise losses from theft or other mishaps have been rising and now represent over 3 percent of total sales. What decisions have to be made before investing in information?