Austin Wood Products
A Case Study on Austin Wood Products
A Case Study Presented to
the Faculty of the Ramon V. del Rosario College of Business
Decision Sciences and Innovation Department
De La Salle University - Manila
In Partial Fulfillment
of the Requirements for the Course
SUPPMAN K31
By Herrera, Lorenzo V. 11224738
Kehyeng, Charise Jessica T. 11144394
Larracas, Danielle Dominique G. 11134917
Lim, Ma. Anna Emanuelle N. 11107669
Zialcita, Raphael Paolo
Prof. Willy Cuason
September 16, 2014
I. CONTENTS:
Summary of Findings
Background Information
Problem Statement if there are any
Analysis of Alternatives
Detailed Recommendations
Answer to Case Questions
Learnings
II. SUMMARY OF FINDINGS:
As seen in the case of Austin Wood Products, although the company is profitable and offers a variety of high quality products, there are a number of flaws and problems that the company face in different functional areas related to purchasing and supply management.
One dilemma would be that the inventory and stock room operations are having a hard time keeping track and managing inventory and stock. There is no system that efficiently keeps track of how much inventory is at hand, what kind of lumber or materials are available in the stockroom, how much of the inventories are being taken by the workers, where they are, and whether or not certain inventories are missing. In other words, there are no records of the movement and breakdown of different materials and inventories with its exact quantity that will help the company easily determine its remaining inventory. It also takes two tedious days to count inventory which takes up the time and effort of 47 workers for 10 hours. Another dilemma is that the demand of different materials of wood varies per year. This makes it difficult for the company to predict the demand of the customers and pre-order and stock up on inventory. The company estimated that their inventory changed one and three quarter times a year. This then
A Case Study Presented to
the Faculty of the Ramon V. del Rosario College of Business
Decision Sciences and Innovation Department
De La Salle University - Manila
In Partial Fulfillment
of the Requirements for the Course
SUPPMAN K31
By Herrera, Lorenzo V. 11224738
Kehyeng, Charise Jessica T. 11144394
Larracas, Danielle Dominique G. 11134917
Lim, Ma. Anna Emanuelle N. 11107669
Zialcita, Raphael Paolo
Prof. Willy Cuason
September 16, 2014
I. CONTENTS:
Summary of Findings
Background Information
Problem Statement if there are any
Analysis of Alternatives
Detailed Recommendations
Answer to Case Questions
Learnings
II. SUMMARY OF FINDINGS:
As seen in the case of Austin Wood Products, although the company is profitable and offers a variety of high quality products, there are a number of flaws and problems that the company face in different functional areas related to purchasing and supply management.
One dilemma would be that the inventory and stock room operations are having a hard time keeping track and managing inventory and stock. There is no system that efficiently keeps track of how much inventory is at hand, what kind of lumber or materials are available in the stockroom, how much of the inventories are being taken by the workers, where they are, and whether or not certain inventories are missing. In other words, there are no records of the movement and breakdown of different materials and inventories with its exact quantity that will help the company easily determine its remaining inventory. It also takes two tedious days to count inventory which takes up the time and effort of 47 workers for 10 hours. Another dilemma is that the demand of different materials of wood varies per year. This makes it difficult for the company to predict the demand of the customers and pre-order and stock up on inventory. The company estimated that their inventory changed one and three quarter times a year. This then