Essays on Inventory Levels

Multi-Organisational

Enterprises & System(BNM830) Major: Supply Chain Management Total word count: 5728 Net Word Count: 5023 PART 1 A. Apple Inc. is one organization that is known by many to deliver a diverse and complex product-service system. The firm is a technology organization whose products are of high quality and more available to its clients. The company also provides varied services and has opted to venture into other complex activities that are not common with many, if not all, technology companies (Apple, 2015). One of its best selling products is the iPhone6 brand that is not only available in the ...

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’ ...

Ganesan (2007, p.1) defined working capital management as a company’s best strategy for its continued sustainability since it uses short-term financing strategies to fund everyday operations (Ajibolade and Sankay, 2013, p.233). The pecking order theory believes that internal financing is the best alternative but it can result to conflicts between corporate liquidity and profitability (Ajibolade and Sankay, 2013, p.234). The reason for this is that the company’s internal funding may not be enough to fund the period between the purchase of inventories or raw materials until the collection of receivables (Gill, Biger, and Mathur, 2010, p.1). Having ...

Introduction to PepsiCo Incorporated

PepsiCo is an American multinational company having its origin in the United States. The company is a market leader in the global beverage industry. The biggest and worldwide competitor to PepsiCo is the Coca-Cola Company. PepsiCo serves the worldwide market and gain access to audience by mainly sponsoring sports events, players and teams.

Pro-Forma Financial Statements of PepsiCo Incorporated for 2016 (the next period)

This section is aimed at displaying the financial statements of PepsiCo for the next financial accounting period (2016) as well as the last statements for 2015. The pro-forma income statement and balance sheet are prepared by assuming a ten percent increase in sales revenue and cost ...

Dear _______,

After researching about program management, I have come across different perspectives that made me think that pursuing a career in this field can be promising for one’s professional and personal growth. This letter contains several of my findings about program management and why I decided to pursue a career in this field. A career in program management can be challenging and I found that any candidate for this position have to possess certain characteristics that will enable him to deliver according to management expectations. The complex responsibilities require that the program manager must have the core competencies, attributes ...

Introduction

A multicultural organization is an organization characterized with a workforce of people from diverse social and cultural backgrounds. The workforce includes people from diverse religious, ethnic, racial and gender backgrounds, including those from minority social cultural backgrounds at all levels and in all departments of the organization (Wang & Chan, 2009). Virtual organizations are organizations primarily supported by technology such as World Wide Web, Internet, telecommunications, EDI, e-mails, videoconferencing and groupware. Organizations have been encouraged to become virtual to derive benefits that include lower overhead, lower labor costs, increased employee morale, more project options and flexibility (Wang & Chan, 2009). The ...

Introduction

Supply chain management primarily entails the coordination of functions within an organization as well as tactics used to execute those functions. Also, it involves tasks’ coordination across the partners participating in the supply chain with the principal objective of ensuring improved organizational performance. The definition of the supply chain clearly depicts the nature of the coordination between the partners involved in the business and appreciates the primary purpose of the supply chain management. Apparently, this approach aims at improving organizations’ as well as the individual performance (Lee et al., 116). There are two main components of the supply chain, ...

Inventory Management

Abstract This paper is on the topic of inventory management of Apple Inc. and Samsung Electronics. The first section of this paper will discuss the types of inventories managed by these companies and their essential inventory characteristics. These second section will analyze how each of their goods and services design concepts and integrated. The third section will evaluate the role their inventory plays in the company's performance, operational efficiency, and customer satisfaction. The fourth section of this paper will compare and contrast the types of layouts and their importance in company’s manufacturing. The fifth section of this ...

Projects are the common vehicles for business organizations to fulfill its strategic initiatives, to effect change and to implement initiatives that do not usually conform to the normative organizational structures (INSEAD, 2013). With the globalization trends, project management skills have become more significant. However, traditional project management skills are not anymore adequate. The skills, which best fit project management, include the ability to manage time and to coordinate (ISEAD, 2013). Different factors make the old set of skills inadequate for managing complex projects, especially in international contexts.

Project managers are a very special group of professionals. They are highly ...

- Abstract

Planning is an important aspect in businesses today. Any business that does not take initiative to plan for its future is likely to face challenges which could otherwise be identified during a desk review and planning process (Bose 2002). This document is a continuation to the business plan for Dalnim but now covering Statistics to be used in measuring quality, capacity planning md facility location, an aggregate plan to maintain competitive advantage, work system design, project life cycle, and project management and to inventory planning and management. This is with a view to make the business and financial plan operational.

- Background information

Dalnim was ...

Lean Processing

Lean processing is a manufacturing technique that integrates various tactical methods with an emphasis on eliminating wastage in the production while delivering quality products on time, low cost and at a greater efficiency. This process ensures all this by concentrating on wastage that originates from overburdening as well as in unevenness in workloads. Lean manufacturing was derived from a Japanese manufacturing industry and went on to be applied in Toyota Company. The main four goals and strategies of the lean manufacturing process includes improving quality of products, eliminating wastes, reducing time and reducing total costs. In order for an organization to survive ...

Introduction

Material Requirements Planning (MRP) and Kanban control systems are one of the most prominent production planning and inventory control systems of today. These systems are the most popular implementations of push and pull strategies respectively. Speaking of MRP, it is a material control system that tries to maintain adequate inventory levels to ensure that the required materials are available, when needed. MRP is used where there are multiple items with complex bills of materials. It is not suited for continuous processes that are tightly linked.

The major objective of an MRP system is to simultaneously:

- Ensure the material availability, components, and products for customer delivery and planned production. ...

Accounting for perpetual inventory system has various advantages and disadvantages. In terms of advantages, it allows for accurate restocking since all changes in inventory levels recording follows the real time. Ideally, this means that the recording occurs both when the inventory is purchased and sold. In so doing, it allows one to have the ability have accurate information thus able to identify inventory items that are running out of stock (Epstein, 2011). In addition, it helps in provision of accurate interim financial statements. In most cases, the inventory under the periodic inventory system in both cost-of goods sold ...

Business Process and System

Abstract This paper is on business process and systems of Pars Food Ltd. The paper is divided into two essays with first essay on the task of how total quality management and supply chain management of Pars food ltd can help the company in achieving its long term objectives. The second essay will discuss how organizational structure, employee selection and training helps in achieving the aligned organization, value added products and competitive advantage and differentiation aspects of Pars Food Ltd’s strategy and vision. Business Process and System

Increase Market Share: Expansion to Europe

According to Bernard J LaLonde, professor at Ohio State ...

The world’s leading firms use inventory management practices to generate cash flow; in fact, they use the supply chain to increase their revenue and run ahead of competition, which has resulted in their stock price being higher than competition (CSCO Insights, 2011 p.1). During the recession, companies cut inventories to achieve corporate sustainability and survival; yet, nowadays, with economy on the incline, companies also need to face a number of additional problems that reduce inventory (CSCO Insights, 2011 p.1-2). It is, therefore, very important to manage and streamline inventory levels to make the supply chain as efficient as possible. ...

Introduction

The aim of every business executive is to make a company successful. They go beyond their ways to implement strategic and management techniques to achieve this. However, most management advice and strategies that companies use are quite unreliable and impractical. Only a few tend to adopt strategies that work for them. The difference in strategies is what leads to different financial position of companies. Some companies therefore end up being better than others. This could be in the name of market share, innovation or even recognition. In the end, some companies stand out than the others. This report is aimed at ...

Part 1

Relocation of Bit Technology Inc. to a new headquarters in China is a cost cutting strategy for the high-tech manufacturing firm. The foregoing summarizes resource and operational factors considered in the decision. The competitive strategy that reflects Differentiation Strategy with a Product Lifecycle Focus, concentrating on the High End, Traditional, and Low End segments. Threats to the transition of the global firm are analyzed in a Porter’s Competitive Analysis, defining six (6) barriers to emerging market entry of multinational enterprises (MNE) looking to expand their growth prospectus through offshore manufacturing of parts (Table 1). - Economies of Scale - The ...

Shuzworld is considering the possibility of opening a new store. They have the option of building a new stand-alone store, opening a store in a strip mall, or not building one at all. Shuzworld needs to decide if they should purchase market research.

Decision tree for Shuzworld’s is constructed regarding the possibility of opening a new store. In the case study, the stand-alone store would see good profits of $700,000 as long as there’s a favorable market and the opposite end in losses would show $400,000 in case the market was unfavorable. The strip mall store could show profits near $ ...

A. Develop a distribution pattern that meets availability and demand constraints and minimizes total shipping costs for Shuzworld, utilizing the appropriate decision analysis tool. 1. Submit a copy of the output from your decision analysis tool of choice. a. Explain why you chose the decision analysis tool you used. Shuzworld, a manufacturing company has a total of 3 production plants. In addition, they also have 3 centrally located warehouses, which also contain the most successful line of women’s shoes. The manufacturing plants were identified to be Shanghai, Shuzworld Hangzhou, and Shuzworld Fuzhou. As per the analysis which had been ...

Compare and contrast Best Buy and Big Lots

Compare and contrast Big Lots and Best Buy

In the comparison and contrast between big lots and Best Buy, Big Lots is more convenient than Best Buy because it opens until late. This helps the people doing shopping at night due to time limitation during the day because of the tight schedule. Big lots do not open until late therefore less convenient. Both stores have good locations to serve all the social status classes, cultures and traditions. Those willing to go shopping with private cars, Best Buy require they prepare for alternative parking lot because theirs is small and ...

Executive Summary

McDonald’s, with its huge customer base and steadily increasing revenue, has proved the excellence of it operations management. Operations management can be defined as a long term strategy that shapes a company’s operations in such a way that it is aligned to organisational goals, market requirements and available resources. The objective of this paper is to delve through the effective operations management strategies of McDonald’s that have significantly contributed to its huge success. It studies the various the components of operations management and how effectively it has been utilised in McDonald’s. The corporation is the leader in ...

Introduction

The total amount of goods in stock is known as inventory. Maintaining inventory involves cost in the form of storage cost and blocking of working capital limit. Not maintaining sufficient inventory may lead to loss of sales and profits. Hence, companies optimise their inventory level to ensure smoothing functioning of business. Strategies of inventory management can be better understood by analysing the case of Dell and HP.

CP 7-4 Inventory Ratios of Dell and HP

On analysis of inventory levels of Dell and HP in the given question, it is evident that the two companies adopt different strategies ...

According to the ARC Advisory Group, Transportation Management Systems (TMS) can be defined as software solutions that assist in acquisition of transportation services and in implementation of transportation related plans, enhance short-term planning of transportation activities, optimize the use of company’s resources and assets. These systems do not only manage the physical flow of goods, but also assist in measuring performance, enhancing collaboration and managing information and money flows that relate to transportation activities across all transportation modes.

Q1. Why are organizations showing more interest in TMS (Transportation Management Systems) today compared to the past?

The increasing interest in the TMS solutions has been driven by a number of factors. Firstly, the transportation costs are currently ...

Inventory management

As Wooden Wonders Ltd, adopting a good model of inventory management would optimize inventory order quantity and re-order level for the company. It is known that inventory plays a very important role in the supply chain. With a good model, the need for inventory would be minimized since the model is supposed to manage the factors that make inventory levels to go up. The items that require inventory are split in two main categories. The first is dependent demand items while the second is independent demand items. The systems required to manage these two categories vary.

Wooden Wonders, which manufactures household furniture, ...

Introduction

Gap Limited is a medium size retail outlet for shoes located in the northern district of the city. It is an organization which offers high quality shoes of all varieties and for all customer segments, ranging from children’s footwear to hiking footwear. The organization has been experiencing tremendous levels of growth partly attributable to the increase in the brand visibility and growth in reputation of the organization’s products in delivering value to customers. This growth has resulted in increased inventory levels and an emerging complexity in the management of inventories. The inventory systems currently in place are insufficient ...