Better inventory management
No production bottlenecks
Boosts employee morale
* 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
* 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.
“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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