Hp Case Report - Operations Management

1. Understand and identify supply chain issues and constraints faced by aircraft parts manufacturers like HAL and contrast it from supply chains of other industries 2. Apply basic economic order quantity model to make inventory decisions 3. To analyze supply chain system with serial manufacturing fraught with uncertainties and variations in processing times 4. Use probability models to estimate the probability of on-time delivery under different scenarios 5. Estimate the penalty cost for not meeting the delivery guarantees 6. Demonstrate the use of advanced stochastic models to optimize the use of shelf life parts in the supply chain 7. Summarize mathematical complexity associated with the problem and provid

Barilla, the leading pasta manufacturer in Italy, faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains, why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”, i.e. that demand variability increases when moving up the supply chain. Several factors enforce this Bullwhip Effect, e.g. high lead times, poor demand forecasting, and batch ordering. In this report we will point out, that exactly those aspects can be identified as the underlying reasons for Barilla’s problems. In a

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

Each business plans to build its deal breaking its past records. Furthermore, the best way to do it is to draw in new clients as well as to keep up them after deals. An organization that prioritizes its customers will always be referred. The primary purpose behind the decrease of offers in an organization is its absence of duty to give appropriate administrations to its clients. An enlisted grumbling is here and there which is sometimes not attended by the organization which prompts expanded grievances among the shoppers prompting decrease in the sales. Sometimes the organization is not ready to keep up the record of the administrations of a client which prompts a more prominent perplexity in the association. Another issue related to less customer satisfaction is the inability to solve the problem on time.

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

The customers, wholesalers and retailers may order in large quantities with the expectation that they will receive a greater allocation of products that are in short supply. The impact on the supply chain is significant as the forecasted demand is greatly, and unrealistically, increased with these inflated orders. Eventually orders disappear and cancellations pour in, making it impossible for the manufacturer to determine the real demand for its products

Losing a customer means a lot more than losing a sale, it means losing the entire future stream of purchases that the customer would make over a lifetime of patronage. There are a number of reasons why a customer may stop buying from a company; very often though that reason is linked to poor customer service as opposed to something inherently wrong with the brand itself. Customer relationships give companies a competitive edge based on the merit that if consumers are happy more often than not those consumers will continue to do business with said company. A recent study conducted by TD Canada’s customer loyalty poll asked consumers which form of appreciation are

There are three types of inventory models primarily used by organizations, these include the economic order quantity model (EOC), production

ii. Loss of customers (and sales) due to long customer service wait times or lack of

Bibliography:Agnetis, Alessandro, Nicholas G. Hall, and Dario Pacciarelli. "Supply Chain Scheduling: Sequence Coordination." Discrete Applied Mathematics 154.15 (2006): 2044-63Lee, C.-Y. 1986. The economic order quantity for freight discount costs. IIE Trans. 18(3) 318-320. -----. 1989. A solution to the multiple set-up problem with dynamic demand. IIE Trans. 21(3) 266-270.

Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)

With this company the inventory management ratios further indicate that there may be an issue with inventory and inventory controls. The inventory turnover ratio is lower than the industry average and the days’ sales in inventory are high. A company wants to turn inventory quickly to reduce storage costs, and

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

No matter which leadership theory it is to apply, Fiorina’s leadership style in HP was relatively clear-cut: a task-oriented, autocratic, transactional leadership style, whichever way it is named.

SF does not want the product overproduced, provide timely reporting of product sales in order to avoid this problem. For this reason, the company's inventory becomes a serious problem.