1. Mini-Max Inventory System
Good inventory systems help employees and managers with the function of managing. For an inventory system to be effective, there is a need for a constant updates so that it functions according to plan. While computers provide an easier way of managing inventory, the real process lies in the effectiveness of employees on doing tasks that are assigned to them. I researched and figured out that a Consolidated Electrics could make use of a new sophisticated inventory system. This new inventory system is called Minimum-Maximum, or Mini-max. This inventory system involves predetermining of two levels of inventory for each product. This method allows only for the top stocks to be up sale for sale as in the case with the cardex system. For the first level, a maximum value, also called a maximum metric is established. This helps by reflecting the quantity of the amount of inventory in the storeroom is established. This helps by reflecting the quantity of the amount of inventory in the storeroom at the right quantity with exceeding what is required. On the other hand, the minimum, the minimum value is determined once a purchase order has been received. The minimum value allows the purveyor to deliver products in relative short time and to restock them based on the needs (Buckfelder, 2012).
If the physical inventory reveals four cases of one commodity remaining in stock, the workers do not place a purchase order for that commodity. The purchase order is only made when the minimum quantity is the quantity on hand. The mini-max system allows identical quantities of commodities to be sold at the same time. It allows for a predictable pattern of following sales and monitoring trends regarding equipment sales. Although it appears complex, the mini-max inventory system makes sales and purchases in a manner that do not over emphasize one aspect of the inventory allowing sales to be spread.
2. Advantages of the Mini-Max Inventory System for the Customers
While making the decision to use the mini-max inventory method, the company has to make a choice between control system and periodic system. One way of making this deciding is assessing the level of technology available for the firm. A perpetual system like mini-max system is ideal for a company that is capable of recording transactions in real time with scanning machines. The advantage of such a system is that sales are recorded immediately, and inventory is monitored for all changes. Effective inventory system has the advantage of lowering unnecessary expenses and reducing losses for the company. The inventory system also has the advantage of increasing efficiency, dispatching products in time, and maximizing quality for customers. Effective inventory management will enable Consolidated Electricals to meet and exceed the customer’s expectations of product availability with the amount of each item hence maximizing net profits. In the same way, effective inventory management provides an exceptional return on an investment for business because it eliminates dead stock and create an effective way (Campanella, 2012).
In order for Consolidated Electricals to be successful while carrying out this new inventory method, there is a need for reorganization that focuses on developing a plan for creating a formidable design a customer engagement plan. Designing an outstanding customer engagement plan requires that companies understand the manner in which the customers interact with the company. The process also includes having the resources to deliver and allocating responsibilities accordingly while operating the new customer engagement plan (Shredfoder, 2007).
References
Buckfelder, B. (2012). Types of Inventory Control Systems. Retrieved August 1, 2012, from E-How website: http://www.ehow.com/about_5541187_types-inventory-control-systems.html
Campanella, A. (2012). How to Design an Effective Inventory System. Retrieved 2012, from E-how website: http://www.ehow.com/how_6495905_design-effective-inventory-system.html
Shredfoder, J. (2007, March 3). Effective Goal of Inventory of Management. Retrieved August 1, 2012, from Accounting website: http://www.distributiongroup.com/aeimintroduction.pdf
