Inventory Management

Home Properties have recently done some repositioning investments of areas including landscaping, signage, and common areas due to increased curb appeal and marketability of the property. Since Home Properties is a service industry the inventory can be based on renovations of properties.

An inventory system to use would be the Q system, continuous review system or you could also use the more practical system if J.I.T. inventory (Just in Time Inventory). Every time a tenant moves out a new inventory is ordered. Some of these inventory items include apartment interiors.

Apartment interiors are renovated when tenants move out. These renovations include top of the line improvements. Some of these improvements include dated kitchen and bathrooms including new appliances, floorings, counters, cabinets, lighting, tiles, fixtures, sinks, bathtubs and toilets.

It may include the removal of kitchen walls to open up the living area. A typical interior upgrade also includes repainting, new carpeting and the addition of six-panel doors. Where feasible, we will add in-unit washers and dryers which bring a high return on investment. A typical apartment makeover takes approximately two weeks to complete which minimizes loss of rental income.

Home Properties has decisions to make on which appropriate inventory system to use. A lot of this choice is based on timing of renovations, type of record keeping, and cost. High service levels require high investment levels for a given order quantity and deviation. Management decisions should be made after careful study in turnover between tenants and new and recent renovations. Updating to the newest level of inventory can be costly. Therefore; management decisions should be carefully anazlyed when placing orders.