In this case study Roger Gray and the Anderson Plastics Inc. Company has a many purchasing problems and concerns. All of these problems are not directly caused my Roger Gray himself or the purchasing department. In this report I will explain these problems and recommend ways in which these problems can be resolved.
One problem in this company is the lack of staff in the purchasing department. The plants number of products has increased from 250 to 550 and Roger Gray is still the only real purchasing agent for the company. I believe with more help Roger Gray could spend more time monitoring inventories instead of filling out order forms on the computer. If Roger Gray could have more help with doing the simple tasks in this expanding corporation he can worry about bigger things such as keeping their customers happy.
Another major issue causing stock outs and inefficiency within this company is the way their supply is transported to them. The rail system has proven to be very unreliable and I believe that using this way of transporting goods for this company needs to change. For a company to be successful its product and supplies needs to arrive in a timely manner. I think that company should switch to trucking as its primary source of delivery. It may be more expensive initially, but in the long run if there is fewer stock outs it will pay for the extra cost of road versus rail. This motive of transportation I believe will also help make their just-in-time delivery system work more effectively. Another possible solution to stock arriving late is to hold the company sending the stock responsible for it until it arrives at your manufacturing plant. If the stock arrives late than they pay for the losses your company receives because of the shut down.
Another way this company could reduce its chance of a stock out or a prolonged stock out is by possibly having a closer supplier. Instead of materials taking for example 2 days to arrive as...