AbstractThe layout with which manufacturing companies operate has a large impact on their efficiency, costs, benefits and productivity. This article will discuss two companies, which are Kellogg and Proctor and Gamble. Additionally, inventory management practices and their impact on the company's overall efficiency, operating costs, sales levels, product availability, and overall success will be discussed. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Traditionally, the way of managing inventory would be called the Retailer Managed Inventory system or (RMI) for short. With this system, retailers track inventory received and sold; therefore, rearrange as they see fit. More recently, companies like Proctor and Gamble have adopted a system (VMI) which stands for Vendor Managed Inventory System. The four different types of layouts are product layout, process layout, cellular layout, and fixed position layout. “The importance of store design and atmosphere and their implications for customer experience in the era of omnichannel and technology-driven shopping environments have been recognized in the marketing literature” (Krasonikolakis, Vrechopoulos, Pouloudi, & Dimitriadis , 2018). Inventory Management The layout with which manufacturing companies operate has a large impact on their efficiency, costs, benefits and productivity. This article will discuss two companies, which are Kellogg and Proctor and Gamble. Additionally, inventory management practices and their impact on the company's overall efficiency, operating costs, sales levels, product availability, and overall success will be discussed. These two companies are relatively large and for this reason they have some common points in their operation; however, they also have differences. An analysis of how their goods and service design concepts are integrated will be discussed, as well as the role their inventory plays on business performance, operational efficiency and customer satisfaction. Finally, supply chain performance metrics will be evaluated and improvements suggested. Competition increases when a customer switches to a different brand simply because their favorite brand or product is out of stock. If they like the new brand and it is generally easier to acquire, they may switch brands and products permanently. Inventory management plays a vital role in keeping a business operating at optimal levels and keeping sales at the highest possible levels. Very often a retailer sells many brands. For example, Target, Walmart, and K-Mart all sell products from multiple brands. Traditionally, the way of managing inventory would be called a Retailer Managed Inventory system or (RMI) for short. With this system, retailers track inventory received and sold; therefore, rearrange as they see fit. More recently, companies like Proctor and Gamble have adopted a system (VMI) which stands for Vendor Managed Inventory System. Instead of placing the burden of tracking and ordering on the retailer, that burden is then placed on the seller. When two different manufacturers sell similar interchangeable products, it is vital that the manufacturer ensures that its product is always on the shelf to ensure brand loyalty among its customers. The retailer will not necessarily lose money by not having that particular item on their shelves, but the manufacturer will (Mishra, & Raghunathan, 2004). and are taken into considerationoperating conditions” (Almaktoom, 2017). Technology has helped tremendously in managing inventory and monitoring circumstances such as weather or traffic delays. With the speed at which information is transferred, initial and contingency planning can be better utilized. This still doesn't take into account circumstances out of your control such as inclement weather, car accidents, natural disasters, human elements such as employees arriving late or sick days, etc. Technology can only solve some aspects of planning in general, but also inventory management as a whole. Once the inventory is well managed, how the layout is planned and implemented is equally important. The four different types of layouts are product layout, process layout, cellular layout, and fixed position layout. “The importance of store design and atmosphere and their implications for customer experience in the era of omnichannel and technology-driven shopping environments have been recognized in the marketing literature” (Krasonikolakis, Vrechopoulos, Pouloudi, & Dimitriadis , 2018). In typical physical stores or businesses the previous four layout types are used. A product layout is where products are arranged according to a sequence of operations, such as a sandwich or pizza place. The order of events determines the layout. This works well for places like Subway, Baskin Robbins, or Dion's Pizza. This is also evident at buffets. A process layout consists of grouping by job function, such as a Home Depot Store or machine shop. By separating processes like tire alignment and perhaps window tinting services, for example, companies could be more efficient in what they are able to complete in the shortest time possible. This also applies to car washes, regardless of whether they are self-service or not. “Process layouts offer greater flexibility and less investment in equipment” (Li, Tan, & Li, 2018). A determining factor in how inventory is managed and arranged in stores, retailers and restaurants depends heavily on the needs of not only customers, but also employees and the company at large. For example, by grouping equipment needed for the same processes, such as all cash registers, in one area, it is not only convenient for all customers, but also for management and cost efficiency as the equipment computers require specific connections that would cost more to have. throughout the store in many places. Some stores continue to decide that it is in their best interest to do so, for their own reasons and for the convenience of customers. It depends heavily on the cost-benefit scale. Cellular layout essentially analyzes products and services based on purpose and assigns the products or services into cells. Managers are then assigned to certain cells or departments, as they are often called. This allows employees to become experts in the “cell”. This is evident in department stores, such as Dillard's. Other retailers do this as well as an organization, time optimization, inventory tracking, and sales tracking tool. This is not the type of layout used by stores like Verizon as it would not greatly benefit them in the same way it benefits other entities. The “warehouse” adopts long aisles for displaying products, which simplifies product comparison, while the “boutique” layout was found to be the best in terms of shopping fun and entertainment” (Krasonikolakis, et.al .). The “boutique” layout is the cellular layout. It can allow the client to feel more responsible.