Essays on Inventory Management

Purpose

This paper intends to investigate how well the Pakistan pharmaceutical industry’s supply chain system performs. The thesis aims to achieve this purpose by examining the transportation, outsourcing, logistics management, and government regulations, and how these factors influence the efficiency and effectiveness of the pharmaceutical industry of Pakistan. In particular, the paper provides insights into the performance related practices used in the Pakistani pharmaceutical industry. Consequently, it points out the need for more research aimed at capturing dynamics and specific operational characteristics of local networks for development and improvement. Further, by denoting the relationship between system practices and SCM ...

Abstract

Zara International is a clothing and accessory retailer with operations in 88 markets around the world. Spanish Inditex Group owns the company that deals with men clothes, women clothes and has a Zara Kids for children clothing. Zara is one of the most successful fashion retailers in the world. The success of the company has been attributed to strategic management capabilities that involve the inventory management and as well the human resource management. The company human resource strategy was to include a Spanish manager in every store. This allows the company to maintain a management culture that is efficient ...

VP Operations

As Pepsi o is the biggest player in the international beverage industry, the company has to maintain its distinct position by successfully handling the operational strategy. The operational strategy of Pepsi Co aims to meet the business needs in ten strategic decisional areas. These areas under the operational management include the design of goods and services, quality management, process and capacity design, location strategy, layout design and strategy, job design and human resources, supply chain management, inventory management, scheduling, and maintenance. The ultimate aim of the operational strategy is to maintain ad efficient response time to the fluctuations in ...

Introduction

The report discusses the outcome of the financial analysis of Fresh Fashion for the period of three years beginning 2014 .As part of this analysis, we will exclusively focus on liquidity assessment, and inventory and account receivable management of the company. While the sole objective of framing this report is to appraise the investment opportunity in the company’s stock, however, since we are only using financial ratios as the tool of assessment, we will also discuss some of the limiting factors of financial ratios.

Ratio Analysis

Financial ratios allow us to transform raw financial figures into useful multiples, which can ...

Enterprise architecture is a holistic expression of an enterprise through different aspects of the enterprise, which includes goals and objectives, strategies and governance, organization structures, and technological structures. An enterprise architecture program supports frameworks that collectively enable essential communications and functioning of an enterprise as a whole. To capture the vision of an entire enterprise, the definition of a framework is necessary. Therefore, an enterprise architecture program enables communication regarding every aspect of the enterprise, which offers consistent and precise information about an organization’s entire environment (Schekkerman, 2004). This way an organization is able to determine ways to ...

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

Introduction

The organization is looking at establishing the new reception and distribution operation for the finished goods, produced outside the domestic market. The market complexity, costs and operational efficiency in downstream logistics are critical to the success of the new venture. Importantly, the recommended warehousing operation should take into account the geographical spread of the customer base to the West Coast and Northeast of the United States as well as Canada. The purpose of this document is to present a preliminary analysis of the market trends, associated with the warehousing activities for similar operations and provides the recommendation, which would ...

It is used in the knowledge-based decisions. It provides training to the team members in the organization.

It is used in the yield meeting, which indicates that the individuals must have the same vision.

It is used in the pricing and inventory management and provides the detailed information about the inventory. Effective forecasting reduces inventories The effective estimation helps the organizations to reduce the inventory and the organizations can become effective in the market. If a company becomes efficient in the forecasting so that the company can easily estimate the future needs of the market and produce the inventory according to the desire of the market (Olszewska & Piwoni-Krzeszowska, 2014).

Contract manufacturer in a supply chain

The contract manufacturers have a greater role ...

Business

Zara is the flagship brand of textile empire Inditex. The company wants to improve the management of its stores and increase the speed of their garments replacement by installing an identification chip on clothing, an initiative that has already tried other competitors. The chips of Radio Frequency Identification (RFID) have more than ten years in the market, but several retail chains in the past as Wal-Mart or JC Penney, they discovered both that the advantages and disadvantages of the RFID (BJORK). In the case of JC Penney, the company found that the new chip caused interference with existing anti-theft ...

What are the problems facing SG in 2010?

Scientific Glass is a provider of specialized glass equipment to a variety of organizations which include research laboratories, pharmaceutical companies, and testing facilities. The company faced inventory management problems in 2010 and it is these problems that are the focus of this write-up. As of January 2010, SG noted a substantial increase in the level of inventories (Wheelwright & Schmidt, 2011). The implications were that the company noted increased levels of tied-up capital. The debt to capital ratio rose beyond the target level of 40% meaning that the organization could not use the capital in other areas. Further, the company’ ...

Describe the challenges faced by the company. What were the drivers for change to the supply chain?

The strong competition in the home appliance market, alongside customers’ increased demand sophistication, created the premises for Whirlpool to change its supply chain structure and organization. Looking at Porter’s five forces framework, the main forces that impacted Whirlpool’s supply chain redesign were the intensity of the industry rivalry and the bargaining power of consumers (Porter, 1985). As the case study informs, Whirlpool Corporation needed to transform its supply chain so that it could better satisfy its customers through improved quality of its products and services (“Whirlpool Supply Chain”, n.d.). With this market requirement, the company addressed the ...

Business

2016-07-28

Introduction

This paper is devoted to the company Nissan Motor Company Ltd. and its management system. The great attention is paid to the operations management, supply chain, inventory management and other aspects, which can significantly impact on the company’s effectiveness. Nissan is currently demonstrating a steady growth in terms of volume of production and sales, as well as developing its technologies in different fields. Nowadays, the company Nissan produces cars in twenty countries around, which include Japan, USA, England, Spain, India, Brazil, Mexico, Russia and others. Sales are conducted in more than one hundred and sixty countries. Company ...

Inventory management anchors the link between organizations and their primary stakeholders. A personal experience at a Credit Union in two weeks revealed just how much the organization undergoes to come up with outstanding inventory blueprints. Branch to branch interconnectivity, integration of the value chain and cost analyses are some of the activities notable in the blueprint. This summery analyzes the Credit Union’s inventory blueprint through a spectrum of seven key points discussed as:

Roles of the Management

The Credit Union considers the role played by management in its endeavors at the center of the success of the organization. Superficially, it is the ...

Introduction

Agile Project Management comprises several PMLC models. They provide guidelines on how to achieve project goals by prescribing specific solutions that are geared towards the success of those goals. Different PMLC models are applied in different projects to suit the specific characteristics of the project or project sub-system and the goals of the subsystem (Sawant). This paper analyzes the Pizza Delivered Quickly case study and proposes different PMLC models that should be applied to the various the subsystems of the project based on the unique characteristics of the sub-systems

Pizza Factory Locator Subsystem

The Adaptive PMLC model best fits the subsystem. The Adaptive ...

Introduction

Starbucks is now one of the leaders in Supply Chain Management and Procurement practices. However, at beginning of the decade the operational costs of the company were rising while the net sales were decreasing. This was owing to the fast expansion due to which the supply chain management was not rationalized and had to keep pace with business expansion. However, as an efficiency and rationalization drive, the costs of running the supply chain management as a percentage of total costs have been marginalized to a considerable extent. This is owing to the new approach of Total costs of Ownership ...

General Motors, also called “GM” in this piece, is an American corporation that is responsible for overseeing a number of automotive and vehicle brands. In total, GM is responsible for thirteen different brands: these brands are Alpheon, Cadillac, Vauxhall, Chevrolet, Buick, GMC, HSV, Wuling, Baojun, Jie Fang and Ravon (General Motors, 2016). Not all of these brands are available in every country served by General Motors; many of these subsidiaries are available only in particular regions or regional locales. As is traditional in the modern multinational corporation or conglomeration, the company has headquarters in one location, and each of ...

Executive Summary . 3-4

History .. 4-5

Strategic Elements 5-6

Critical Events .. 6-7

Leadership 7-8

Mission and Vision Statement . 8-9 External Assessment 9-13 Analysis of Competitive Position 13 Internal Assessment . 13-17 Current Strategy 18 SWOT Analysis 18-21 BCG Matrix . 21-23 IE Matrix .. 24-25

Possible Strategic Alternatives 25-26

Evaluation of Current Organizational Structure .. 25 Recommendation Changes .. 25-26

Situational Analysis . 26-29

New Turnaround Objective .. 29

Proposed Measures . 29-31

Funding this Turnaround Effort 32-33 Financial Projections 33-34 Conclusion 34

References 35-36

Sears Holdings Corporation Executive Summary Sears Holdings is a major brick-and-mortar retailer in both the United States and Canada. As such, it sells a wide variety of products, including appliances, consumer electronics, apparel, tools, sporting equipment and ...

Executive Summary

The background for this paper is the analysis of the "Large Technology Company" referred to as LTC hereafter. The paper looks at the LTC's requirements for an ERP system recommends a suitable ERP solution for the company. Due to the growing complexity of the business environment in most industries and the increased globalization and the resulting internationalization, managing and utilizing information effectively is very important for the success of modern companies. Managing the whole operations requires IS that can integrate both external and internal information into readily available and usable forms. ERP systems are being used by many companies ...

1.0 Internal Assessment [from Phase 1] The SWOT Analysis, using the Internal Factors Evaluation (IFE), noted Sear’s strengths in the areas of retail network (expansive), strong brand recognition (e.g. Kenmore Home Appliances, Craftsman Tools, etc.), and a strong management team (lots of untapped potential), among others. Conversely, its weakness were also notable: deteriorating debt margin (has exceeded its assets and capital), unreliable revenues (fluctuating), and poor management style (cause of poor strategies), among others. 2.0 Current strategy Supplier and merchandise inventory management: Despite the fact that the fourth quarter only generates not more than 29 percent of its ...

Essay

Introduction The headquarters of Wal-Mart are located in Bentonville, Arkansas. Sam Walton, the founder of the company, launched a variety store in Newport, Arkansas in 1945. His brother, James 'Bud' Walton, opened an identical store in Missouri in 1946. Until the 1960s the enterprise was focused wholly on variety stores (Brunn, 2006). The original Wal-Mart Discount City was launched in 1962, which became the original discount store of Wal-Mart. The original Sam's Clubs were then launched in 1984, which was followed by the opening of the original supercenter in 1988. The original neighborhood market was launched in 1999. In ...

Introduction

The ability to concurrently develop a product and its supply chain is a major competence in manufacturing industries. When the tow activities get undertaken efficiently at the same time, massive returns are bound to get derived. Proper design ensures that goods produced have the highest quality possible. High quality guarantees customer satisfaction and improves the brand name and legacy. Suitable supply chains, on the other hand, ensure that goods and services reach the customers on time. They also provide that the cost of supply is greatly diminished and saves the company revenue. However, in the auto-manufacturing industry, this ability ...

Environmental Scan

Under Armour is a sporting apparel manufacturer and wholesaler for women, men and youth. Their products feature special moisture-wick fabrics engineered in a diverse range of styles and designs for the performance athlete in any climate and at any age. Under Armour's products are worn by athletes at all levels including professional as well as consumers living active lifestyles. In 2015, Under Armour grew approximately 20% in revenues from year prior, generating global revenues of $4..9 billion and maintaining an operating income of $503 million.(Mann 2016) The majority of its net revenues are generated from wholesale sales of ...

Introduction

This case study is about the Coca-Cola Company, the world’s leading soft drink giant. The organization has an American history that dates back to historical times when the food industry was still in its infancy. Coca-Cola deals in all the supply chain processes of beverage production. This includes the manufacture, marketing and distribution of its non-alcoholic brands. The company has an international presence that has allowed it to establish investments in various global destinations. Headquartered in Atlanta, the company boasts of its ownership of John Pemberton’s patent of the original Coca-Cola product (Greenfield, 2016). Coca-Cola Company’s ...

Inventory Management in Apple and Coca-Cola

Inventory Management in Apple and Coca-Cola

Introduction

Inventory management constitutes one of the major concerns of business organizations. Efficient inventory management enhances the profitability of an organization by ensuring that all activities involving inventories are well controlled (Hill, 2012). In essence, inventories entail all assets that facilitate normal business operations, and they include stock of goods for sale, the raw material for production, and materials consumed in the manufacturing process. Primarily, inventories constitute the largest item in the categories of current assets (Williams, 2015). The valuation of stocks at the end of financial year is crucial for determination of profitability ...

Introduction.3

Project Goals and Objectives..3

Transaction Processor.4

Price and Inventory File..5

Inventory Management5

Communications..6

Documentation.6

Alpha test.6 Beta test6 Start Rollout.7 Actual Project Costs and Cash Flow7 Timeframe and Timeline..8 Resourcing Allocation and Rationale..8

Perceived Benefits8

Assumptions9 Risk Assessment..9 References..10 1.0 Introduction. Universal Retail Corporation (URC) is an active player in the growing electronic gadgets market, and it plans to open a chain of retail outlets to further its growth in the market and combat the growing competitive threat from online purchases (Colophon, 2014). URC is designed to have a sale and stock control system for its proposed chain of retail outlets across Australia. The organization provides ...

Introduction

Amazon is an organization that started in 1994, as the earth’s biggest bookstore. The company in 1997, via IPO, raised $50 million. In 1999, the business explored new business models, marketplaces, and auctions. In 2000, after the fall in GP, the business shifted towards traditional retailers. The objective of this paper is to analyze the case “Amazon.Com the Brink of Bankruptcy” presented by Lynda M. Applegate in 2013. For the attainment of the purpose, the paper has been divided into seven segments. Each segment presents worthwhile information.

Financial statement analysis refers to the evaluation of the profitability, stability, ...

5. Channel Performance Assessment Puma has established strong distribution networks through the multibrand store front and Puma stores which are located in major cities across the world, from which customers can access its products in over 120 countries around the world. Wholesale is the main distribution channel for Puma. Puma is focused on expanding its distribution channels even more by opening more retail outlets throughout the world. The distribution channels have not achieved the full sales potential as evidenced by the drop of Puma’s currency in 2013. The omnichannel for instance has had some challenges and conflicts that ...

The recent weather forecast of cold summer is not good news for the business. With the predicted cold summer, the company might not sell a lot of residential air conditioners (ACs). The sales volumes might further dip if the company fails to come up with strategies to increase sales even with the predicted cold summer. A dip in sales volume will affect the company’s anticipated profit since the profit margin is very small. This can be done by addressing areas of weakness. Even with a fierce domestic market, there are some short-term measures which can be implemented to ...

Paper Title

Analysis While proprietary systems have not gone the way of the dinosaur, they are increasingly uncommon and infrequent to come across because of the possible or expectable headaches that arise when such standards are used. Healthcare and information technology in particular are fields where having proprietary and standalone system is far from being a good idea. When such systems and languages do not mesh or get along, this leads to bad performance, lack of data integration and so forth. Having anything like this going on is a terrible thing for a hospital or other clinical arena because having data ...

Part A.

The total inventory cost for RMD will be as follows if they continue with their current policy of purchasing 600 cartons per month. Total Ordering cost = $200 x 12month = $2,400 Holding cost/Carton = 20% x $6 x 120 = $24 per annum per carton Holding cost p.m = $2 per carton Total Holding Cost =$2 x 600 cartons x 12 months = $14,400 Total inventory cost = $2,400 + $14,400 = $16,800

If the RMD used the Economic Order Quantity Model;

Total Inventory Cost = (Q/2)*Ch + (D/Q)*Co = (600/2) * $24 + (7,200/600) * $200 = $7,200 + $2400 = $9,600

Part B.

Using EOQ, the total inventory costs will be as follows; With 5% ...

Introduction

Practical use of inventory management is among the aspects at the core of the supply chain management success. The management of different inventories such as raw material, finished goods, partner inventories, work—in the process, among others rests at the demand and supply intersection. However, the inventory management perhaps has the long way to go. The relationship between the inventory management and the corporate cash flow generation was understood recently and has currently received a broad interest level (Dekker et al., 2013). Now, firms can use supply chain to improve business performance by using the supply chain to generate ...

Inventory Management in Supply Chain

Inventory Management in Supply Chain

Inventory management

Inventory management is about specifying the percentage and shape of the stock goods. Inventory management is necessary on several places to keep the orders, store them and use it for production use. Inventory is the asset of the company and it remains an asset until it is sold and cleared (Salvo et al, 2002).

Inventory system

It is a system in which a company check over its stock. The activity done by the employees to check the company’s stock is known as inventory system. Inventory control majorly refers to logistics, operations management and supply chain ...

Abstract

Managing small businesses is a complex undertaking that requires skills and perseverance. This is based on the understanding the small businesses face some challenges that are unique. Some of the key issues include limited access to funds, limited access to professional skills, and overdependence on the family. The small business managers also complain of long working hours and the need to be present in the running of the business. They also lack perpetual existence, which further complicates the succession politics. The owner has to constantly worry about how the business will perform if he or she dies. This paper ...

Inventory Management

Introduction

Throughout its operations, ABC faced the challenge of stock-outs in certain inventory. This refers to circumstances when the company would run out of important inventory, thereby turning the buyers away when they needed certain products. This problem was mostly witnessed among the inventory that would later be classified as under category A. Initially, ABC did not have a system of setting preference as to which products to be closely monitored or to be given priority over others. Commodities under A proved to flow easily. Simply put, their demand was overpowering the supply. With the past inventory management methods, ...

Business Plan

Executive Summary 3 1.0 Introduction 4 2.0 Operations plan 5 2.1 Location and facilities 5 2.2 Business processes 6 2.3 Distribution and outsourcing 9 3.0 Organizational plan 10 3.1 Management 11 3.2 Mission 12 3.3 Purpose 13 3.4 Vision 13 3.5 Legal structure 13 3.6 Organizational chart 14 4.0 Marketing plan 16 4.1 Price 16 4.2 Product 17 4.3 Place 19 4.4 Promotion 20 5.0 Financial plan 21 6.0 Growth plan 22 7.0 Contingency and harvest strategy 23 8.0 Timeline to launch the plan 25 9.0 References 28 10.0 Appendices 29

Executive summary

Don’t we all enjoy the experience of ...

Zara is using the Microsoft Disk Operating System (DOS) which has become obsolete since Microsoft is no longer providing support. With the withdrawal of support, it is risky for Zara to continue using DOS. In case, they encounter a technical problem, or the system fails, the entire operations of the company could stall; from selling points at the stores to inventory management, as well as productions would be slowed down. The only result from this is a reduction in the number of sales volumes or no sales at all which will be a crippling loss in revenue. Besides, the ...

Inventory Management

Inventory Management: ABC There are several possible reasons as to why ABC revamped its inventory management methods. These may include Past ABC records reveal that stockouts were common phenomena in the operations of the business. Often, the company would run into a shortage of its products. Simply put, the demand for the products would, in certain cases, overpower the supply. This would mean that ABC had no other option, it had to turn away its customers. This is a risk venture. In any business, customers play a significant role. They bring money to the business. Stockouts bring an undesired ...

Zara

Introduction and Background The case of Zara, a famous fashion clothing manufacturer, has been considered with the focus on inventory management and lean operations. The major aim of lean manufacturing (Just-In-Time) is to reduce the cost through having control over inventory and reducing waste. Zara is a fast fashion retailer and fashion changes rapidly. Therefore, it is difficult to estimate the demand for products. Hence, Zara procures the material in bulk and cut the clothes into pieces. However, when fashion changes and demand for any specific design rise, the retailer prepares the dresses on demand (Just-In-Time). In this way, ...

Analyze major events and technological advantages that influenced modern Health Care Information Systems.

If we go back to look at the healthcare system of the 1960’s we will see two major payers Medicare and Medicaid. The database systems of these payers were crude and primary at best and that did not make much difference because the payers only accepted payer claims that were handwritten by a secretary. Moving to the 1970’s brings the advent of the large clinical labs and pharmacy. Computers in the 1970’s began in single departments and consecutive departments were added one the viability was proven on each single department. The 1980’s is the time ...

Inventory management and customer satisfaction

Inventory Management and Customer Satisfaction Introduction Inventory management primarily ensures businesses maintain products at affordable cost and still achieve the goal of having sufficient and steady supplies to promote continued operation (Mpwanya, 2005). Importantly, enterprises prioritize inventory management since they want to realize a reduction in costs, offer standard services, ensure products are available and make sure their customers are satisfied. Managing inventory is critical to business since it impacts customer satisfaction, which in turn affects the financial performance of a company.

Body

Inventory management Inventory management is a wide subject, and various researchers define it differently. Arnold (1998) describes ...

Answer 1

Based on the videos and some more research on Amazon, if I have to look at the future ten years from now, I see that on the strategy and operations side Amazon has presence in ecommerce and physical store retail, has minimal human work force in the warehouses, provides the services in tier 2 and tier 3 cities in almost all the growing countries, and caters to a larger customer base with a broad spectrum of product line. Based on the article published in Forbes by Steve Denning, “ingle-channel retail will disappear, whether it’s pure e-commerce or brick-and-mortar ...

Inventory management involves overseeing the continuous flow of items into and out of a company’s current inventory. The supply chain’s health is dependent on inventory management. Chick-fil-A classifies its inventory by physical locations. In particular, the company classifies its inventory by storage areas as well as preparation areas. The most vital function of inventory management is inventory control (Tom, Jayakumar, & Sijo, 2013). There are different methods that businesses use in controlling their inventory. The inventory control method that Chick-fil-A makes use of is fixed period ordering system. As a matter of fact, the fixed period ordering system ...

Various constraints characterizing the climate under which many organizations operate today underscore the significance of conceptualizing the lean theory at different organizational levels. Lean tools, methods, and techniques can be employed at different levels such that lean production is embraced as an inclusive philosophy that continuously improves not only the production aspects of an organization but also its contextual physical production processes. In this paper, I discuss how lean principles would help in the strategic planning of an organization. I assume the position of Chief Executive Officer of the organization. I also discuss how the current philosophy can be ...

Describe some of the strategies that firms can use to overcome the challenges related to transportation infrastructure congestion.

Transportation infrastructure congestion is a serious problem that many firms have to endure. Besides reducing efficiency, congestion causes an increase in the cost of production through extra costs incurred through delays and time wasted. It is therefore essential for any firm keen on maximizing profits to come up with adequate measure to address the problems of transport infrastructure congestion. A firm needs to set up a mechanism that will ensure that goods are delivered to customers in the shortest time possible, so that ...

When the economic recession of 2009 hit global consumer markets, FMCG companies were forced to relook their supply chain management strategies in order keep their prices below those of competitors. With prices of raw material and power soaring, the company had to review its supply chain management and make several adjustments to remain competitive. Kraft Foods, the second largest food company in the world, has kept a keen eye on future growth requirements, even before the economic recession had set in.

As far back as 2007, the company earmarked an increase of cash flow by $1 billion. Philippe Lambotte, Senior ...

When the economic recession of 2009 hit global consumer markets, FMCG companies were forced to relook their supply chain management strategies in order keep their prices below those of competitors. With prices of raw material and power soaring, the company had to review its supply chain management and make several adjustments to remain competitive. Kraft Foods, the second largest food company in the world, has kept a keen eye on future growth requirements, even before the economic recession had set in. As far back as 2007, the company earmarked an increase of cash flow by $1 billion. Philippe Lambotte, ...