Scientific Glass, Inc: Inventory Management
| Scientific Glass, Inc.: Inventory Management | MPC Assignment |
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INTRODUCTION
In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering the trade-offs of these evaluations, a conclusion is made. And it must be mentioned that, throughout the case, related points are referenced to the case text and lecture notes with corresponding page and paragraph numbers.
CRITICAL POM ISSUES
As mentioned in the text, there is an identified increasing trend in the balances of inventory levels. For a growing company in a growing market, this high inventory level, in other words tied up money in the inventory, creates an obstacle for this company to use this extra capital on other areas, such as expansion to international markets. Also, as mentioned, debt to capital ratio exceeded the target level of 40% and with the same approach this increase of this ratio also jeopardizes the company’s funding expansion plans to international markets. Although, there are many other POM issues are found in the text, these mentioned two were the most critical ones and it is thought that if they are solved the other problems will be solved spontaneously.
ANALYSIS OF THE CRITICAL POM ISSUES
In the last part, it is mentioned that average inventory level is high enough to jeopardize company’s future plans. Therefore, main reasons behind this problem should be analyzed. First of all, company
|
INTRODUCTION
In this case study, production and operations management (POM) issues of a mid-size company, named as Scientific Glass Inc., in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results, and considering the market leadership opportunity, how inventory management approach can be made better is explained by evaluating different alternatives from different aspects. In the first part, critical POM issues are mentioned, following that these problems are analyzed. In the third part, alternative options are listed and then they are evaluated. Finally, considering the trade-offs of these evaluations, a conclusion is made. And it must be mentioned that, throughout the case, related points are referenced to the case text and lecture notes with corresponding page and paragraph numbers.
CRITICAL POM ISSUES
As mentioned in the text, there is an identified increasing trend in the balances of inventory levels. For a growing company in a growing market, this high inventory level, in other words tied up money in the inventory, creates an obstacle for this company to use this extra capital on other areas, such as expansion to international markets. Also, as mentioned, debt to capital ratio exceeded the target level of 40% and with the same approach this increase of this ratio also jeopardizes the company’s funding expansion plans to international markets. Although, there are many other POM issues are found in the text, these mentioned two were the most critical ones and it is thought that if they are solved the other problems will be solved spontaneously.
ANALYSIS OF THE CRITICAL POM ISSUES
In the last part, it is mentioned that average inventory level is high enough to jeopardize company’s future plans. Therefore, main reasons behind this problem should be analyzed. First of all, company