Supervalu

Assuming that the company’s goal is to maximize profits, the current cost system is not an appropriate tool for strategic planning. The ambiguity of the overhead costs per product makes it difficult to accurately analyze the cause and effect relationships of changes and/or improvements to specific product line.

The reduction of human error on the production line cuts down on internal failure costs because less defective products have to be thrown out, less waste occurs and less downtime is experienced. Because these issues are usually caused by quality problems, process innovations that improve quality help eliminate internal failure costs.

A reduction in shelf space and warehouse space could reduce TCC’s revenue and increase transportation and storage expense due to the amplified turnaround time on processing orders.

Energy Conservation. To conserve energy, it is my recommendation that the company have employees shut

The Company’s goal is to have zero work-related illnesses or injuries. However, in order to attain this goal, it will require a team effort involving both the Company and the employees. Only through such a coordinated effort can this safety plan be established and sustained.

When the employees sweat out to reach the production targets, they give their best and the mind-set or the attitude of the employees towards the organization changes. The management should set up monthly workshops to interact with their employees, thus making the employees feel that the management is well within their reach and is ready to listen to their pleas. Organizing such workshops will stimulate the feedback process which will help the management to cut down on production and sales costs in turn maximising the returns (Arnolds & Boshoff, 2002). Organizing technical trips and field tours further improves the management employee relationship as this allows the two parties to work together in a different environment and gain better ideas. The concepts of the ERG (existence, relatedness, growth) Model can be applied by recognizing individual employees who attain the highest productivity and then rewarding them with various benefits such as growth. Growth is what employees look for in any organization as the more

* Least expensive of the three strategies due to the lack of excess inventory and employee overtime

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

My inventory control procedures provided both increased revenues and cost savings. Quite simply, I ordered adequate levels of products which were in high demand, I was able to better meet customers’ needs, and my revenues increased. The cost savings I experienced as a result of my inventory control procedures were a bit more complex. First, in establishing a routine schedule for ordering, I was able to reap the benefits of lower shipping costs. Because I had a routine schedule, I could

Because the product was leaving the warehouse and getting to stores quicker, I was able to reduce the storage space which was an initial problem so the increase of costs because of it decreased. The stores showed a moderate increase in profit.

Employee involvement was a key issue in product improvement because the line workers knew much better than management what was right or wrong with the production, their contribution to decision making became vital issue.

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

Employees require motivation, reward and encouragement for maximum productivity. Punishment to workers not performing is also mandatory to prevent cases of poor performance. Ethical considerations must be looked at and employees must follow rules and company policies for plans made by management to be successful. Workers and management relate like a family and this has enabled the company perform to its expectation. These plans are aimed at ensuring total customer satisfaction and delight.

3. Incorporated workshops to go over ethical behavior and workstation policy to better gain an understanding about current working conditions so that the American Red Cross can develop sought after working conditions. Happy employees = increased productivity

Define what the impact on inventory and warehouse cost would be? Fixed costs are generally a concern with warehousing. Many companies are streamlining their manufacturing and distribution network by consolidating and centralizing their logistics operations. (Ou, 2002) Warehouse consolidation is a key component of the logistics strategy. When the products are high in value and when transportation costs are insignificant compared to inventory and ordering cost, consolidation can be pursued with great enthusiasm. Also, outsourcing warehouse functions has proven to be a good idea when the product in question has a seasonal, cyclical, or uncertain sales nature. One recent example of manufacturing consolidation is Colgate-Palmolive establishing a new facility in Greenwood County. “Greenwood County had a building that was a perfect fit for our needs, offers us a talented workforce and excellent market access” said Mike Corbo, Vice President-Global Supply Chain, for Colgate-Palmolive. (Skipper, 2013) That “perfect fit” comes thanks to