Management 362 (online)
The Privileged Fly
September 01, 2012
Joan Glass the supply manager has to change to the new way that world-class organizations use the five value- adding outputs of proactive procurement to be able to determine what actions to she needs to take. She has to use make sure the materials she purchases are quality products for the inventory. She has to work to reduce the total cost to acquiring and to move the products. She is going to have to use her time wisely to use the outside suppliers to get her the inventory that is needed. She is going to have to use technology to keep a current record of the inventory on hand and what is going to be needed in the future. She also needs to build strong ties with several different suppliers to be able to call on the other supplier if the other supplier falls short on being able to keep her supply from being disrupted. Q1. The upper top is going to have to decide on an amount of inventory that would be able to cut cost down but, not to put the amount of inventory to be so short that the rest of the team doesn’t have the materials to be able to finish their orders without creating a conflict with the finance department and not to tie up unnecessarily amount of money in the inventory. If they don’t decide on an amount to keep the stock it is going to keep costing the company on the receiving side of the inventory and increase cost to supply to the customers. The production manager that complaints about being out of stock of any item will not hold water if the supply manager is keeping the inventory at the levels that the upper management have decided on to keep on hand. If they use a keep a reasonable amount of inventory this will cut down on out of stock items, shutdowns, shipping costs, and the fights between the departments. If the inventory then fails to meet the needs of the other departments it can be blamed on the faulty policies of the upper management. Q2. Some of the factors that...
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