Since Wal-Mart is a mass market retailer, its primary source of value that it adds to the company is derived from its supply chain. Wal-Mart has suppliers located all over the world and it purchases goods from a wide range of different types of vendors. Many of the company's primary vendors are directly connected to Wal-Mart's IT systems through what is referred to as an electronic data interchange (EDI). An EDI can instantaneous transmit data between Wal-Mart and their vendors. Such information can consist of order information, stock supplies, demand forecasting and many other key supply chain metrics. The advantages of such a system are clear as they can greatly assist creating efficiencies in the supply chain. However, not all suppliers have developed sufficient IT technologies to participate in an EDI program with Wal-Mart. Another option for greater coordination between parties in the supply chain is web-based supplier integration. Although the web-based systems are not quite as sophisticated as an EDI, they are more accessible for many of the smaller suppliers and they have shown to improve long-term coordination, cooperation, and commitment.
The company instead needs to change to a first in First out approach to keep inventory moving on shelves and develop a new enterprise resource system (Phillips, 2008). In addition to this change which would directly affect the floor employees since it is labor intensive and involves constant moving of product, the company would implement a sales tracking portable device that directly connects the store with the ecommerce site and the distributors. Under this method, store clerks can carry the portable tracker on their person and be able to directly engage with the customer by locating products faster as well as order products directly with the consumer if the product is out of stock or not carried at that location. In addition, the sales tracker will be an inventory tracker with a minimum quantity set with distributors that can automatically order additional product to keep stock or for the company to ship excess material at one location to another location in
This article makes up Chapter 1 of the free, open access book titled, Information Systems: A Manager's Guide to Harnessing Technology, by John Gallaugher. Please ensure that you read the entire Chapter 1 of the book consisting of 3 parts (Part 1 Introduction; Part 2 Don’t Guess, Gather Data; and Part 3 Moving Forward).
It is observable that the standard procedure issue restricting company progress is a notably derelict network. The Enterprise Resource Planning (ERP) and Materials Requirements Planning (MRP) servers are outdated and stand out from the rest of the systems set up. Integration of the servers will be executed to address the company’s customer relation, human resource, sales and order, finance and inventory issues. Integration will be the goal after upgrades are incorporated in the system’s infrastructure. Recurrent technological advancement compels innovation in apt acknowledgement of agile enterprise. It is essential for Riordan to transition appropriately to sustain a contemporary pace that equals the requirements of strong customer levels. The overall decision making process rudimentary to Riordan’s organizational headway entails agile enterprise in its management system. Primarily, Riordan must contend with its inventory system as manual implementation causes status delay which can halt production, sales, purchasing, and overall deference from the
Team B has obtained information for SR-rm-002 asking for an assessment for the development of an MRP system that would trace and run raw materials and give a finished product inventory. This evaluation is to help Riordan Manufacturing lessen the raw materials received at each plant, and manage and reduce the completed good inventory costs, at all its plants. This is a high level complete analysis, which will result in projected changes to the system; though it does not include an all-inclusive schedule for completion nor thorough scope by department. This paper will illustrate the system development life cycle process
“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
“For companies today, MRP is a computerized information system. As such, it requires data to provide the information needed for decision making” (Vonderembse & White, 2013, Section 9.5, para 6). The goal of this paper is to read the Space Age Furniture Company case study and develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000 considering the lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079; suggest ways for improvements over sub-assemblies in lot sizes of 1,000, analyze the trade-off between overtime costs and inventory costs, calculate a new MRP that improves the base MRP, compare and contrast the types of production processing—job shop, batch, repetitive, or continuous—and determine which the primary mode of operation is and why, describe ways that management can keep track of job status and location during production and recommend any changes that might be beneficial to the company and/or add value for the customer.
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which
The company can achieve the requisite productivity levels to meet sales projections since it has a very efficient inventory management system and ordering system. However, problems may arise due to unpredictable external issues (i.e. lowered demand, declining economy, etc.).
The present organizational chart of the SC Department in the company includes two buyers, one material control clerk, one expeditor and two shipper/receivers. This structure was functional to the previous strategy because there was a strong focus on the purchasing function. We believe that in order to maximize the SC Department resources in accordance with the new structure the positions and functions of the people with the SC Department will have to be adapted to strengthen the inventory management function of the company. There company could benefit from having one person responsible for forecasting demand. Processes should be reviewed to ensure that the SC Department has sufficient access to information in order to achieve this task. Re-buying will also be of utmost importance now in order to ensure that there is always sufficient inventory to maintain production going.
Case Study Assignment KL Worldwide Enterprises Inc.: Putting Information Technology to Work Submitted by Mark Lemoine September 14th, 2012
All retailers have a common goal in mind, and that is to make a profit. Companies earn a profit by first connecting customers with products, which can lead to an exchange of product for money. Without the ability to connect customers with products, no money exchange is possible and no profit is earned. It is, therefore, immensely important for retailers to have the right products, in the right quantities, at the right locations, and at the right time. Inventory Management Systems provide companies like L.L.Bean with the necessary information to achieve just that. L.L.Bean’s advanced inventory management system (IMS) connects customers with products, irrespective of the location of the product or the customer (Hoffsess, 2015).
As noted above, the base of operations is in China. However, both shipping and inventory maintenance are controlled by the Material Requirements Planning (MRP) software platform. This IT strategy allows the company China operations to be controlled from a central location in the U.S. and has historically allowed the company to achieve its desired level of growth. According to the case scenario, Riordan employs "special software developed by the manufacturers in the planning and scheduling tasks of the company. It shows the orientation between the various requirements and the progress in the manufacturing sector, so that more accuracy in the delivery dates." (Riordan Manufacturing, 1) However, the current supply chain difficulties are calling the MRP platform into scrutiny. As Riordan has grown, and the demand for its product has
When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.
A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data