Essay about Steelworks

1673 Words7 Pages
1. Based on the spreadsheet data, how would you characterize Steel Works’ products? What about Steel Works’ customers? Given your answer and the information in the case what does this suggest? Company Profile: Steelworks Inc., from the case produces seven different types of products from both specialty and custom products. From the case it’s evident that the specialty product contribute to 67% of the revenue produced by the company. The specialty products ideally deal with small business customer whose annual business range is less that 1 million. The custom division produces products for large business customers and its essential that they hold stock in the inventory throughout the year to cater the needs of the customers. From the…show more content…
The majority of products made by the Steelworks inc is sold to small business owners. Its by their business that the company is able to generate a revenue of 67 million. The case also gives the solution to stop manufacturing the products that are values only for few thousand dollars. My suggestion would be it would be unwise if the company decides to stop on those products where the co-efficient of variation is low and contribute to the revenue of the company. Its equally beneficial to deal with small-sized business customers as well. Customer Profile: The company deals only with a handful of huge business customer as in custom line, it has one customer who buys Duraflex R23, and even the demand of Duraflex R23 is low compared to that of Durabend R12 and R15. But the cost of handling and storing the inventory for serving the huge business customer is taking a blow on the company revenue. On the other hand specialty products has 130 customers for 120 products that include high, medium and small-scale business too. Review Policy: From the case its evident that the specialty products are manufactured in lot, one in one month. So its high advised that the company follow periodic review policy to maintain the inventory level in optimum place. The specialty products generally rely on the
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