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With both cases above, there are a few things that are relevant. First, ordering too much is a sunk expense that will spent unnecessarily due to lack of proper planning and foresight. Sure, the ice melt will be usable (or sellable) eventually. However, that could happen a month down the road or it may be next year. Regardless, too much inventory was collected and thus money was spent unnecessarily (Muller, 2011).
The other consideration is that the excess will have to be disposed of or sold somewhere. Even if the product is used eventually, it will collect dust and take up room until that happens. The degree to which this shall happen will obviously depend on how much money wasted. It is true that not all product is seasonal. However, anything surrounding holidays, a certain time of the year (from a weather standpoint) and so on will have to be done with the proper foresight and care. After all, it is better to be a little short than to have a glut that cannot be moved in a way that is profitable and fruitful. Retailers can mitigate their damages and storage costs, at least somewhat, by using discounts to move items that would not normally move as quickly. Items that are used for internal purposes might have to be destroyed, donated or otherwise used in a way that was not the intent when the expense was created (Groebner & Merz, 1990).
When it comes to resource allocation and expenditures, the best way to proceed and behave is to have a supply chain pipeline that is predictable and structured. A good illustration of this in process would be the just-in-time (JIT) framework (Hirano, 2009). Commonly used in car manufacturing and other such things, it is the idea that items that are needed for manufacturing are delivered not just on time, but not too soon and not in amounts that lead to wasted motion or space. For example, if a car company installs 20 car bumpers a week, then it would make a lot of sense to deliver those 20 bumpers in the week or so before they are installed. Some might be inclined to order 200 bumpers and have 10 weeks of supply. However, this is wasteful because the money is spent too soon. Further, the aforementioned challenge of space being taken up is also present. Delivering the bumpers in metered clips will allow the expense curve to be steady, the supply to be steady and so forth. This, on the whole, is the best way to proceed (Xu & Chen, 2016).
For the…
Overall the proper supply chain management system provides a company with an obvious competitive advantage. Improvements to this system, supplier certification This particular system has been quite advantageous for Dell and other companies. However, all supply chain management systems can be improved. One of the changes that can be made is an increase in the options that are available to consumers. Increasing such options will increase customer satisfaction and lead to
Supply Chain Management related to DIMCO Supply Chain Management and other issues related to DIMCO In this paper, we will determine whether integration efforts should start with suppliers, distributors or both for the firm DIMCO. We will also attempt to explain the rationale for our decision, after this we will recommend ways that DIMCO could benefit from leveraging B2B e-Commerce. We will then determine what steps DIMCO could take in order to
Supply Chain Management Purchasing and Supply Management: A Key to Competitive Advantage Purchasing and supply management is an essential function of any business. Regardless of the size of the business, or the product are service that they offer, every business depends on some type of supply in order to produce goods or services. If supplies do not arrive on time, the business could be it a standstill. This not only means lost
Supply chain management has become a concept without which companies could not face the increasingly complicated business environment existent nowadays, especially given the competition of companies that can operate at lower operational costs and thus increase their profit margins through cost competitive advantages. In order to achieve lower costs, better distribution processes and better delivery times, companies have introduced supply chain management. Supply chain management can be defined as "the practice
In addition to this, the company is pressured into reducing the time in which the product will be recalled, the situation will be analyzed, and the items in case will be replaced with proper ones. The pressure exerted by the public is also very important for the company in handling the product recall. The company must ensure that the public does not turn against the company. In order to achieve this,
Though it is not entirely necessary for the approach taken to be a novel one, the research here will consider that there are yet undetermined impacts on the merchant of such a system. Thus, a second part of this methodology will be focused upon once the literature review has provided us with sufficient data to surmise a framework for the automated system. As this automation would impact the ordering systems