Harvey Industries Case Study

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Harvey Industries Marcus T. Daniels Feb. 26, 2012 Harvey Industries First, I think that there should be separate departments for each service that the company provides. These would include the pressure washers and the coin operated car wash systems, as well as any others that the company may maintain. Second, each piece of inventory should have a valid bar code so that the inventory can be deducted from the inventory system. “Good inventory management is important for the successful operation of most businesses and their supply chain. Poor inventory management hampers operations, diminishes customer satisfaction, and increases operating costs” (Stevenson, 2009). Bar codes will allow for automatic identification as soon as…show more content…
Furthermore, these inventory control systems will allow for you to understand what part numbers are the ones that are being purchased frequently. The previous records indicate that 179 of the part numbers are being spent most frequently. However, the way that the current system is kept, it may not provide a detailed explanation of what those part numbers are. Furthermore, since these part numbers are used most frequently, they can automatically be reordered with a computerized inventory control system. In order to be able to identify recommendations that results to an efficient inventory management system, the current issues confronting Harvey Industries' existing inventory control system have to be identified. The following are the weaknesses and their corresponding financial impact that the student has identified: * There is no one person responsible for managing inventory and thus no one is really assigned with the task of minimizing the cost of inventory. This could be one of the primary reasons why inventory balance has been steadily increasing. Very high inventory level results to high inventory costs from obsolescence, storage and pilferage. * There is no existing policy as to optimal stock levels for each inventory item. Stock out costs the company lost revenues and dissatisfied customers. * It appears that access to inventory and the responsibility of maintaining inventory records
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