The inventory management is very key to a company. The reason for this is because when your
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
Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.
Specialisation. Inventory allows each of a company’s plant to specialise in the products that it produce. Instead of manufacturing a variety of products, each plant can manufacture a product. Then the finished products can be ship directly to customers or to a warehouse for storage. By specialising, each plant can gain economies of scale through long production and cost savings in transportation. The specialized facilities known as focused
“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
The management level can then decide on the inventory management criterion. The company can work on ordering the materials that are in shortage or mange the priorities according to the seasons and the products the customer desire to purchase.
Moving the warehouse in between the shipping and receiving departments will reduce the amount of time needed to pull orders for shipment thus reducing the staging time needed. By having one location for both the finished goods and raw materials allows for the cross training between shipping and receiving as well as allows both departments to have access to each part of the building they need without adding extra work to one department.
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
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.
Inventory reduction helps to reduce costs by reducing the amount of space needed at any given time. Warehouse space is expensive and keeping real-time inventory records along with automating many of the processes that go into the manufacturing process will allow the client to have more of a
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).
Charles Jackson, Chief Information Officer (CIO) at McConnell Spice was recently tasked by the Board of Directors to find qualified knowledge sharing companies that would increase productivity, permit for better time utilization, and allow the company to maintain global acquaintances. Jackson’s main priorities entail determining which company would be suitable for the position, and impressing the board. Charles has to attain all needed resources to surpass the Board of Directors expectations.
My name is Yasmeen Nunez and I’m the information technology director of Mers Inc. Mers Inc is one of the top financial firms in the east coast with over 100 offices and 1600 employees. Anthony Clementine founder and CEO of Mers Inc started this firm with his father in 1987. In 28 years the firm has developed into a multimillion-dollar company. The company is drastically flourishing; we hope to open 15 more firms across the United States by 2025. Due to the all the drastic changes in the technology world it’s most important to be up to date with our information and technology. The technology within our company is extremely outdated, thus providing inconvenience for our employees to be up to date with their
In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering
Managing what's in a warehouse or on the shop floor can be extremely complex if you're looking for optimal cost and supply chain management capabilities( Needleman, 2017 ). Inventory estimation and control is directly impacted a company’s profitability.