Executive Of Operations At Mcsemi Technologies, Inc.
1458 Words6 Pages
1. As Vice President of Operations at McSemi Technologies, Inc. I would first concentrate on managing inventory costs which are very high and rising. By doing this first it would help with saving costs which in turn help drive more industry expectations by being more organized with our inventory operations. I would first work with the entire staff with developing a more approved stock list for each location. For example:
Part Item ID Orders per year Total quantity/year Total cost/year
1A 50 1000 $80,000
2B 100 600 $50,000
3C 150 200 $10,000
By having a better commitment with your products inventory can help for better immediate shipment and delivery time to our customers. This type of layout of course would be used in a warehouse…show more content… I would simply ask myself and team if this item should be stocked. Having a large amount of supply of a product that is only sold 50 times per year compared to more than a 50% order confirmation to others is causing a negative effect on the inventory turnover. By special ordering this product when ordered by a customer would be best and save inventory spacing. Then with 3C having the lowest total quantity per year ordered and the least on total cost per year but was ordered by 150 customers in the past year. The most ordered then any product in the past year. It really does not make a lot of sense in a managing mind to stock this item. I as a Vice President would want to manage the inventory to meet or exceed customers’ expectations of product availability. So by looking at the table the customers are expecting to have Part 3C more available. After going through what should be stocked and what is the stuff just holding up inventory space I would then manage my team to sort products in descending order or sequence by the total amount of orders each year and assign a rank based on the amount of orders to each item. By having a better layout of the warehouse would help the inventory costs to stay low and help with industry expectations to start rising with having a more positive approach to customer appreciate as well more organization. By organizing our stocked items will help to minimize the cost of filling orders. For example: