52). The researcher handles or controls the items differently. It is a form of Pareto analysis where items such as customers, documents, activities, inventory items, sales territories grouped into three categories namely a, B, and C. In order of their estimated importance. Consequently, 'A' items are very important, 'B' items are important, and 'C' items are marginally important. The organization gives 'A' rating to their best customers since they yield the highest revenue. Sales managers serve them. 'B' rated customers (with more attention) would then follow and lastly 'C' customers whom warrants less attention and are served accordingly.
Advantages of ABC Analysis
ABC analysis provides the materials manager with opportunity to exercise selective control. Thus, the manager will only focus on a few items despite a possible confrontation with a numerous stores of items. When the material manager resorts to concentrate on 'A' Class items only, he is in a better…...
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References
Anderson, D.R. (2011). An introduction to management science: quantitative approaches to decision making. Mason, OH, Cengage South-Western.
Anil, Kumar S, and N. Suresh. Production and Operations Management. New Delhi: New
Age International (P) Ltd. Publishers, 2006. Print.
Bragg, S.M. (2011). Inventory best practices. Hoboken, NJ, Wiley.
Inventory management is an ongoing process (as opposed to a project which has a beginning and an end) of monitoring the constant flow of stock keeping units (SKUs) into and out of supply. The goal is to prevent the inventory from becoming too high (cost), or so low that the operations of the company are in jeopardy (service levels.) (Barcodes, 2011)
Elemental management of inventory requires balancing the three key aspects of stock control: lead time, buffer stock and record keeping.
Lead Time
An inventory manager needs to know how long it takes for a vendor to process an order and make a delivery of goods. he/she also needs to understand how long it will take for those materials to transfer out of inventory in the normal course of business flow. With these two time frames determined, the manager can calculate when to place an order and how many units to order to…...
Cornacchia, Eugenio, (February, 2004), The CBS International Business Network Tools Group, "Recent Trends in Inventory Optimization," retrieved April 20, 2011 from http://www.bnet.com
Essex, David (November 17, 2009), Search Manufacturing ERP, "Inventory Management Trends Focus on Improved Forecasting," retrieved April 20, 2011 from http://searchmanufacturingerp.techtarget.com
In analyzing a Company, we can also compute its gross profit ratio and return on sales. Gross profit ratio is computed by dividing gross profit with sales and return on sales is computed by dividing net income by sales. Respectively, 2006 and 2005 ratios of AC Company are as follows: 39% and 38% in gross profit; and 16% and 15% in return on sales.
Other quantitative measurement of its liquidity is going into detailed of each current assets account using working capital activity ratios. This provides information about the time within which AC Company should realize cash from its receivables and inventories. and, although we cannot tell the time within which the Company must pay its various current liabilities by examining the financial statements, we can use ratio to offer us some insight into the company's bill paying practices or how long customers pay their account.
Working capital ratios are accounts receivables…...
Louderback, Holmen and Dominiak. (2000). Managerial Accounting. Analyzing Financial Statement (pp. 794-802; 811-814). Singapore: South Western College Publishing.
Inventory Management at Snow's Home And Garden
Firm incorporating inventory management: Snow's Home and Garden.
("Success Stores: Snow's Home and Gardens," Activant ebsite, 2005)
Hybrid -- fixed order period system on a seasonal basis, with some variance.
Type of inventory issues the firm has: As a seasonal business, which offers vastly different types of products at different times of the year, from Christmas trees to garden furniture, Snow's Home and Garden must stock a wide variety of products during a single season, before the season changes and creates a radically different consumer demand. One of the key reasons to stock inventories for businesses is to allow for consumer variance in demand over a period of time, and in the specific seasonal business of Snow's, the period-style system for many of its goods is necessary such Christmas trees, pumpkins, tomato plants. However, consumers expect certain non-perishable products regularly, thus some fixed orders are necessary with…...
Automotive Used Parts Industry
Each model associates with the development of new automotive technologies thus making it easier for the new car buyers to save massive amount financial resources. Inventory management relates to the specification of shape and percentage of stocked goods/automotive used-parts. . Inventory management refers to a collection of interrelated processes with the inclusion of a full cycle from supply chain management to demand forecasting, through inventory control and reverse logistics. Effective inventory management would focus on the determination of the amount of time relevant for the transfer of the products to their respective places for the purposes of sales.
Inventory Management in the automotive used parts industry
Introduction
Each model associates with the development of new automotive technologies thus making it easier for the new car buyers to save massive amount financial resources. According to the information by the Purchasing & Procurement Centre (2013), inventory management offsets and ends with the…...
Chou, Y., Lu, C., & Tang, Y. (2012). Identifying inventory problems in the aerospace industry using the theory of constraints. International Journal Of Production
Scientific glass Inc.: inventory management case analysis
What are the problems facing SG in 2010?
One of the problems facing Scientific Glass in 2010 is that the inventory balances within the warehouses were increasing considerably, which resulted in the tying up of extra capital needed by the company to fund the growing operations (Wheelwright & Schmidt, 2011). The compensation program aimed at achieving 99% customer fill rate resulted in most warehouse managers holding higher levels of inventory than required. The policy needs to be considered to ensure that warehouse managers are not abusing it by keeping higher levels of inventory. The company has an inventory control policy not to exceed 60 days' supply, which is regularly violated. The trunk stock kept by the salespeople affected the inventory levels for their specific warehouse, which resulted in higher restocking requests. The stock held by the salespeople did not count towards their target warehouse stock,…...
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References
Wheelwright, S. C., & Schmidt, W. (2011). Scientific Glass Inc.: Inventory Management. Boston, MA: Harvard Business Publishing.
Factory Floor Automation and Inventory Control
Enabling greater integration between the factory floor, suppliers, quality management, production planning, accounting and the executive management teams leads to greater accuracy, clarity and consistency of reporting, and high performance over time. Being able to quickly assimilate, aggregate and analyze shop floor inventory data then translate it into financial metrics is key to any company's long-term growth. Add in the time pressures of semiconductor and computer equipment industries and the urgency to create a unified view of shop floor inventory positions exponentially increases (Alexander, 2001). These and other findings are provided in the article Factory floors go online -- pioneering manufacturers close the final gap in their supply chains (Alexander, 2001). One of the most interesting key take-aways from this article is that only 11% of all manufacturers are actively trying to integrate the many shop floor and inventory management systems to the large-scale Enterprise…...
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References:
Alexander, M. (2001). Factory floors go online -- pioneering manufacturers close the final gap in their supply chains. InternetWeek, (852), PG21-PG22.
Drickhamer, D. (2001, May 21). Peak performance. Industry Week. Cleveland, 250(8) 36-40.
Dyer, J.H., & Nobeoka, K. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal, 21(3), 345-367.
Gould, L.S. (2002, Aug). Effectively managing inventory in the supply chain. Automotive Design & Production; Cincinnati, 114(8), 70-73.
Finally, there is the opportunity cost, which refers to how the income tied up in the inventory could have been utilized.
The best way for Seismic Testing to reduce its inventory costs would be to utilize a lot-by-lot ordering system. It is noted that the explosive is specialized and difficult to obtain. The difficulty could be reduced by entering an agreement with a supplier, where the supplier agrees to supply a certain amount of the explosive on an ongoing basis. This would then be delivered and paid for on a lot-by-lot basis based on an agreed payment amount, rather than being delivered and paid for in bulk. The lot-by-lot delivery would reduce the opportunity cost, since Seismic Testing would be paying for the material as they need it, rather than far in advance. Seismic Testing would also reduce its storage costs, since it would not need to store large amounts…...
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References
Lockyer, K., Muhlemann, A., & Oakland, J. (1988). Production and Operations Management. London: Pitman.
Schermerhorn, J.R. (1989). Management for Productivity. New York: John Wiley & Sons.
21). Conversely, Michman and Greco (1999) point out that, "Some department stores have failed because many have provided a stale and unexciting physical environment to customers. Another reason has been that some department stores have been unable to implement effective inventory management systems, thereby lowering costs to either match or at least approach the prices offered by discounters" (p. 4).
Effectively managing inventory also requires the ability to monitor current inventory levels with an accurate inventory system. To the extent that inventory records are inaccurate is likely the extent to which managers will be required to spend inordinately larger amounts of time in material expediting or placing orders for too much inventory (Young & Nie, 1999). According to these authorities, "A general rule-of-thumb is that the 'A' items should be the most accurate of all inventory items" (Young & Nie, 1999, p. 55). The recommendations provided by the American Production…...
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References
Allen, D.S. (1999). Changes in inventory management and the business cycle. Review - Federal
Reserve Bank of St. Louis, 77(4), 17-19.
Bendix, J. (2009, February 6). Sizing up supplies. Medical Economics, 86(3), 24-26.
Fitz-Enz, J. (2009). The ROI of human capital: Measuring the economic value of employee performance. New York: AMACOM.
poject management and inventoy management ae defined though eal life examples and the affects of the management pactices on the pefomance of the business is discussed.
Question No.
In ode to design a gocey delivey business, thee ae seveal competencies that ae equied to be masteed to gain an edge ove the competitos. The business must have a unique stategy which is based on a distinctive capability which povides the company edge ove the othe substitutes. An alliance with the two majo food stoes will play a stategic ole in the way that opeations would take place. Howeve the distinctive capability fo the business would be intenal. The coe pocesses would be designed in such a way that povides eliable, quick and efficient sevice. The suppot pocesses will include the pocuement pocesses that would suppot the quality assuance depatment.
The poject will follow multiple citical paths. The multiple citical paths will ease…...
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reference: a comprehensive guide to project planning, scheduling, evaluation, and systems. p.185
F.L. Harrison, Dennis L. (2004). Advanced project management: a structured approach?. Gower Publishing, Ltd.
Harold K. (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (8th Ed. Ed.)
PMI (2010). A Guide to the Project Management Body of Knowledge p.27-35
The total cost of procurement has to factor in all of the aspects of procurement, including the cost of the input, transportation, insurance, taxes and duties, and if there are any differences between two competing inputs, those will need to be taken into account as well. For example, if one good has large packaging that means fewer can be shipped or stocked at a given time, that reduced efficiency may need to be taken into consideration. Different trade-offs and opportunity costs are often taken into consideration from a total cost of procurement perspective (Aral, Bell & van Wassenhove, n.d.).
The cost process has to examine these different elements, because an input contains a number of attributes and factors that contribute to costs. Procurement officers need to take into account the other costs that they will be responsible for, in order to drive down the overall costs of procurement.…...
Holmstrom, J., Framling, K., Kaipia, R. & Saranen, J. (2002). Collaborative planning forecasting and replenishment: new solutions needed for mass collaboration. Supply Chain Management. Vol. 7 (3) 136-145.
In fact, the very face of business has undergone great metamorphosis with the technology that has been applied to the labeling of merchandise. Labeling whether for the purpose of fighting shoplifting crimes or for the more efficient tracking of merchandise from point of production to point of sales has become the very nerve center of today's business operations and processes. RFID technology will soon enable customers to breeze throughout the checkout process as RFID scanners quickly total the customer's purchases and enable quick payments to occur leaving the time spent waiting in line to the forgotten past.
Summary and Conclusion
This work in writing has examined the history of modernization of the business process of inventory management across several decades and until the present. During the course of this research the information gained has resulted in the writer of this work being of the opinion that inventory management technology has driven…...
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Bibliography
Vesna Bosilj Vuksi?, Ph.D., and Katarina ?urko, Ph.D., (1998) the Role of Simulation Modeling in Re-Engineering the retail business processes 15 Dec 1998. Original Scientific Paper UDC. Trg J.F.Kennedy-ja 6, 10000 Zagreb, Croatia
Crosby, Tim. "How Inventory Management Systems Work." 23 July 2007. HowStuffWorks.com. 02 July 2010.
"How Anti-shoplifting Devices Work." 01 April 2000. HowStuffWorks.com. 02 July 2010.
When a company carries an inventory, that is a part of their business that is not yet earning money. While each individual component of the inventory is expected to earn eventually, the inventory as a whole is a relatively permanent fixture on the balance sheet and as such never turns into earnings.
The objectives of inventory control are to balance the needs of the operation and the desire of management to keep inventory levels as low as possible. Inventory control allows the firm to maintain operational continuity devoid of inventory-related work stoppages. However, proper inventory control also limits the amount of inventory on the balance sheet, increasingly operational efficiency.
The requirements for effective inventory management are measurement, scheduling, sales projections, and supply chain management. Measurement allows management to understand what inventories are on hand at all times. Projections allow management to estimate the upcoming inventory needs. Based on this, they must…...
' For example: a low-inventory method requires careful monitoring of past behavior of consumers during key periods of high use, and this market research and data tracking comes at a price, if it is done in a through and effective manner (Supply meets demand, 2009, Accenture). Also, computing is such a necessity for some users, even waiting one day for the latest technology may be unacceptable. Dell relies upon almost no 'safety stock' and orders directly what is needed. Dell never begins to assemble a computer system until an order is actually placed, and keeps one-tenth the inventories of its competitors. Having well-trained technicians is essential to keep turn-around down to only a few days (Supply meets demand, 2009, Accenture). But this assumes consumers are willing to wait a few days with a non-functioning or nonexistent system.
At clear Dell advantage has been "a favorable cash-conversion cycle -- sales are readily…...
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Works Cited
Atkinson, Charles. (2005, September 26). Dell Computers. Inventory Management Review
Business -- Inventory Management
Both Hewlett-Packard, Inc. and Dell, Inc. manufacture electronics, managing inventories of purchased parts, fabricated assemblies and finished goods. Manufacturers such as HP, Inc. and Dell, Inc. must work effectively with their "Capacity Management" and in doing so, have arrived at four main layouts. In addition, supply chain is measured by various metrics, to improve overall performance and profitability. hile Dell currently outperforms Hewlett-Packard in inventory management, there is room for improvement in the inventory management of both companies without harming operations and/or the customer benefit package.
Determine the types of inventories these companies currently manage and describe their essential inventory characteristics.
Hewlett-Packard, Inc. and Dell, Inc. are two U. S --based manufacturing corporations that deal in electronics. Both companies manage inventories of purchased parts, fabricated assemblies and finished goods, though Hewlett-Packard maintains a far greater inventory of finished goods due to its business model (Stock Analysis on Net, 2016).
Below is an example essay to help give you ideas when writing your own paper.
Title: Bridging the Skills Gap in the South African Supply Chain Industry
Introduction:
In today's rapidly evolving global economy, the supply chain industry plays a vital role in ensuring the efficient flow of goods and services. However, South Africa's supply chain sector faces a significant skills gap, hindering its growth and competitiveness. To address this challenge, it is essential to identify and cultivate generic, transferable, core, or key attributes that can bridge this gap effectively. This essay will discuss the different forms of such attributes....
1. Self-Checkout: A Revolution in the Retail Industry
This title highlights the transformative impact of self-checkout technology on the retail industry. It suggests that self-checkout has revolutionized the way customers shop and pay for goods, leading to significant changes in store operations, customer behavior, and the overall shopping experience.
2. The Rise of Self-Checkout: Convenience, Efficiency, and the Changing Role of Cashiers
This title emphasizes the convenience and efficiency that self-checkout offers to customers, as well as the changing role of cashiers in the face of this technology. It explores how self-checkout has streamlined the checkout process, reduced wait times, and empowered customers....
Lesser-Known but Interesting Essay Topics on Code of Ethics for Supply Chain Management
1. The Ethical Implications of Artificial Intelligence (AI) in Supply Chain Management
Explore the ethical considerations surrounding the use of AI in automating supply chain processes, such as decision-making, inventory management, and supplier selection.
2. Ethical Supply Chain Management in the Era of Globalization
Examine the challenges and opportunities in maintaining ethical practices in global supply chains, considering issues of cultural diversity, labor laws, and environmental standards.
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Investigate the potential of blockchain technology to ensure transparency, traceability, and accountability....
Dymocks overcomes challenges in the ever-changing book industry landscape by continuously adapting and evolving its business strategies. Some ways in which Dymocks tackles challenges include:
1. Embracing technology: Dymocks leverages technology to improve its online presence and enhance customer experience. This includes investing in e-commerce platforms, digital marketing, and data analytics to better understand customer needs and preferences.
2. Diversifying product offerings: Dymocks expands its product range beyond just books to include stationery, gifts, toys, and educational resources. By diversifying its offerings, Dymocks can attract a broader range of customers and mitigate the risks associated with fluctuations in book sales.
3. Collaborating with....
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