Operation Management

2295 WordsJul 22, 201310 Pages
| | | | | | Operations Management MGT 6170 Final essay Southern Toro Distributor Student: Hoang Xuan Linh Class: CMU 12A Total pages: 10 Score SECTION 1: CASE SUMARY Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas. The case…show more content…
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) Third, , under the circumstance that Toro doesn’t have adequate conditions for goods inventory, in a bid to avoid out-of-stock situations and failure to supply goods for customers, the company could resort to use receipts of other distributors. Considering these above mentioned features, to take over the company, it is essential for Joe Jr. to take due attention to a proper approach for inventory management, calculate an appropriate inventory level for each product, making it in line with the company’s business strategy, the market demand in the upcoming period: To well-sold materials with high sales, it requires reviewing ordering times, making them in accordance with 3 ordering times in a year of Toro corporation. It’s also necessary to calculate a reasonable level of inventory for materials

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