Case Study: Food And Grocery Land Market Dominicks

Try to reduce overall production runs by aggregating different orders, thereby increasing batch size. Marketing strategy of delay in turnaround time is required to achieve this

A new truck was implemented into the schedule, to transfer Spicy Cube from the warehouse to the final destination, so the stores did not run out of inventory as often. Just the slight change in how the trucks ran made a huge impact by altering the shipping direction, the trucks were able to get the product to intended destinations somewhat faster, which was another factor in the stores stabilizing product inventory on location. Because the product was leaving the warehouse and getting to stores faster, the initial problem of product on hand and storage space was rectified and the stores showed a moderate increase in profit. Some of the actions taken were to reduce or better yet, eliminate the issue of excessive product inventory, included combining, and making the shipments larger and increase the amount of product on hand, so that stores that where low on Spicy Cube could retain a normal or slightly more of the product to reduce risk of shortage. Due to making shipments larger, I added an additional truck to assist in getting the product inventory from the warehouse to the stores.

This then translates to a 50% chance of not having inventory available during job opportunities. Therefore, opportunity costs might occur. The indifference of the production managers' in these aspects of inventory control is alarming and should be acted upon.

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

Ever walk into a store with a defined list, but still get other items you never intended to get? Well, in Marion Nestle’s article “The Supermarket: Prime Real Estate,” Nestle goes into detail about how the supermarkets in your daily life uses many tricks to get you to buy items and spend money. Nestle claims that supermarkets and their managers study habits of shoppers to gain the control using certain tactics. According to Nestle, “This research tells food retailers how to lay out the stores, where to put specific products, how to position products on shelves, and lastly how to set prices and advertise products” (Nestle 498). Some tactics that Marion Nestle mention are product location, music, and even item size. During the course of my paper I will convince you that these tactics are in fact real and bring more to your attention. Us consumers have to stick together and this is the first step.

“In an age of increasing specialization, it is rare for one person to be knowledgeable in all aspects of a complex task” (Thompson, 2015, p. 88). In this case, the first step was to understand our incoming demand. For this, I relied on information technology to generate numerous reports as well as the expertise of our sales team. It was at that point that the data was analyzed in conjunction with an inventory specialist. After we had the knowledge of what current product to inventory, we then needed to establish a set of guidelines of how to qualify products in the future. Inventory control management processes were instituted as well as a supply an auditing system. These steps included information from organizational members from our manufacturing group, planning department, and procurement department. Finally, we needed to understand and facilitate the storage and shipping of the product. We enlisted the help of our warehouse employees as well as our transportation department. This type of project included various levels of the organization and required a tremendous amount of communication. The project workload was enormous and also had a substantial financial investment associated with it. Instrumental in the project’s success was the team’s cohesion, diversity, and strategies deployed

4) Exploring the possibility of implementing JIT (Just in Time) system that can reduce the finished goods inventory at

To maximize the efficiency and effectiveness at Riordan, a make-to-stock process is used. Filling customer orders as received from finished goods inventory and maintaining a small inventory on hand reduces gaps in seasonal fluctuations at Riordan. Forging a strong alliance with Chinese supply chain partners will increase quality and volume of the

Chabot needs to increase the flexibility in its supply chain. Chabot is an innovative product manufacturer trying to utilize an efficient supply chain. In order to be able to meet demand, the company needs to deploy excess buffer capacity. Lead time is not up to par so Chabot needs to increase its inventory if it plans to meet unpredictable demand. This will also help increase Chabot’s level of

Because the product was leaving the warehouse and getting to stores quicker, I was able to reduce the storage space which was an initial problem so the increase of costs because of it decreased. The stores showed a moderate increase in profit.

Produce more products so there is less restocking issues but not more than the market calls for (supply and demand),

-With the tight order deadline with La Coruna, the store managers need on-time inventory balance to plan for the re-order point and optimal order quantity.

1) Correct the Economic Order Quantity (EOQ) and Reorder point (ROP) quantities for each of the five items mentioned in the case.

Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also

Tasks:  What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization  Identify the functions and forms of inventory  What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation)  Provide training programs for current and new hiring employees 1