Case Study Of Pioneer Hi-Bred's Supply Chain Management

The company is looking to increase profitability and find a long-term solution to the inventory problem.

Landon Orchard 292 Windermere Court West, London, Ontario, Canada 519-661-7006 Landon Orchard is currently an undergraduate business management major at Ashland University, Ashland, Ohio North Central Ohio APICS Chapter Full-time undergraduate student

Although surveys showed customers were very satisfied with Pioneer products, the sales force was unhappy and felt the lower margins were unacceptable. This drove a few dealers to speak disparagingly about Pioneer products and use bait and switch tactics to create profits for themselves. Mitchell knew the dealers’ support was critical to the current distribution chain, but he couldn’t go back to the old incentives. To continue to be profitable and adapt to the new electronics market, Pioneer reconsider its current distribution network.

Lowering the inventory would likely result in decreasing the currently unacceptable levels of customer service by removing that estimation buffer. Thus, without the reengineering of the production processes, the attempts to change the inventory levels may fail.

We adjusted focus to our niche market, sold off capacity in the low end and traditional markets, and proceeded to decrease our production going into the next round. While selling capacity was the correct financial decision to combat our emergency loan, we were then left with stock outs in all of our product lines. As a result, we continued to struggle with overproduction and avoiding stock outs, but made improvements resulting in less drastic inventory swings in the later

Assuming weekly periodic review replenishment, a Lead time equal to four and a half weeks and a policy of satisfying 98 percent of customers demand from items in stock the safety stock would be:

The factors we looked at were the yearly yield, the salvage value, and the wholesale unit cost. Through our sensitivity analysis, the profitability of our olive farm is most sensitive to changes in the yield of olives. Out of these three variables, maintenance costs have the least effect on our farm. If, for example, both maintenance costs and wholesale unit sales remain at their expected values, but our annual yield is cut in half, our IRR drops to 9.82% and our NPV is -$6,662.98. This is with a very conservative estimate of a 10% MARR. In this situation, the farm would just about break

Reduced inventory by 1.8 million pair. Based on the COGS of 45%, this could mean a reduction in inventory of close to $10M.

Another risk for Laramie deals with the percentage of inventory it has on hand from 2008 to support the current amount of sales. Laramie’s inventory to sales percentage increased 16.4% from 2007 to 2008. Therefore, this increase shows either that Laramie has trouble keeping inventory accounts down or net sales are slowing relevant to the amount being produced. Also, the increase shows Laramie may have overstated inventories meaning there may be an existence issue. There is a need for further attention to the potential overstatement of inventories because the increase in inventory to sales shows that Laramie is not using its resources efficiently.

When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?

Supply-Chain Management is the activities that procure materials and services, and transform them into intermediate goods and final products and deliver them, through a distribution system (Heizer & Render, 2011, p. 452). DELL is a computer technology corporation that develops sells, repairs and supports, computers and computer related products. DELL has realized that supply chain is becoming more and more important for the success of today’s business world and they work accordingly to keep a competitive advantage in the market. This study will examine to what extent Dell has used supply chain management to gain and retain a competitive advantage in the computer market.

If the sales volume is increased, the inventory may change to cash. Our company may then invest in Asia-Pacific (AP) plant and decrease the production in North America (NA) region. It is because the cost of production in AP is lower than in NA and production reject rate is also low in AP.

As a result of this overproduction, another negative effect of just-in-case manufacturing is a decrease in cost efficiency. The most obvious costs would include storage and warehouse expenses (Conrad “The Advantages of…”). In order to have these large inventories, there have to be places to hold such large quantities of goods. Storage costs comprise of preserving the accumulated product to ensure that it functions properly. If the cars or parts are unable to perform, stock might have to be discarded, increasing physical waste. The products lost mean that money and opportunity for profit are lost. In addition to storage costs, there are also warehouse expenses, in which energy consumption, personnel, and assorted equipment are needed to maintain the facility and product. Since our just-in-case manufacturing method requires that we make large amounts of cars, we need places to store them. The more product, the more warehouses, which means there are more warehouse costs that will diminish any profit that we make.

I take this opportunity to express my sincere thanks and deep gratitude to all those people who extended their whole hearted co-operation and have helped me in completing this project successfully.

The world's manufacturing leader--Fender Guitar Company which was established in 1946, the full name of Fender Musical Instruments Corporation. In the past 60 years, Fender has become one of the hallmarks of the United States. The contribution of Fender sound's modern music development has already been spread in global and still continuing. Through the first to introduce the commercialization solid electric guitar, produced the first electric bass and numerous classic speaker. The style of Fender musical instruments includes jazz, pop, rock, country music and so on. Everyone from beginners to enthusiasts and even the world-renowned performers all can find the suitable musical instruments for them. Fender intends to position itself in the