121 Case

Topics: Inventory, Computer, Management Pages: 3 (410 words) Published: February 25, 2013
Decision:
Better inventory management
No production bottlenecks
Boosts employee morale

Background:
-c/o Alfranz

Symptoms:
* Un-updated inventory levels (no EO, and tracking method) * Non separation of inventory control and store keeping
* Absence of materials requisition (monitored inventory levels) * Idle people in the production department
* Production bottlenecks
* Long lead time
* No safety stocks
* No production planning
* Inefficient floor layout of production facilities
* Inventory control 3 people only

Problem Statement
* What courses of actions should the company take in order to properly manage their inventory levels and production activities?

Management Proposed Solutions:
Controller Mr Flume – installation of company-wide computer system Issue:
* tracking method lang xa, if wala paring naseset na ROP at EOQ computations useless pa rin * cost contraints
Production Manager Mr Ferris – hire temporary workers during bottlenecks Issue:
* Short-term remedy that will compensate for the inefficiencies of the system * Idle time will still subsist
* Does not address how to remedy the mismanagement of inventory levels * Adds costs (declining worker productivity as it encourages laziness. Inventory control Manager Ms Coaster – more employees in the inventory control to check and recheck Issue:

* The recording and storage of inventory are still under one department. There must still be an explicit and distinct separation between these two departments. * Effective when it comes to addressing the issue of inventory management inventory but would still give room for collusion among the employees.

Proposed Solution:
“Reorganize the inventory control department and reengineer the inventory transfer process”

* More employees for inventory control,
* separate inventory control from storage,
* presence of materials requisition form to provide for tracking of...
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