Inventory management is a challenging problem area in supply chain management. Companies need to have inventories in warehouses in order to fulfil customer demand, meanwhile these inventories have holding costs and this is frozen fund that can be lost. Therefore, the task of inventory management is to find the quantity of inventories that will fulfil the demand, avoiding overstocks.
This paper presents a case study for the assembling company on inventory management.ABC ANALYSIS IN INVENTORY MANAGEMENT
It is proposed to use inventory management in order to decrease stock levels and to apply an agent system for automation of inventory management processes. Ling, Supply chain management: concepts, techniques and practices enhancing the value through collaboration. NJ: World Scientific, Leseure, Key Concepts in Operations Management Plinere, L.
Antalya, Turkey, pp. Plinere, A. Borisov, L. Cadavid, C.
Case Study on Inventory Management Improvement
Dhoka, Y. Posted on October 1st, Routledge, Chase, F. Jacobs, N. Aquilano, Operations Management for Competitive Advantage. Home About us Subject Areas Contacts. Advanced Search Help.
Entire Site De Gruyter Sitegen. Sign In Create Profile. English Deutsch. Darya Plinere darja. Access Metrics. Keywords: ABC classification ; demand forecasting methods ; inventory management ; replenishment policies.
Information Technology and Management Science. Terms Privacy Latest News. Share Share.Case Study : Global Supply Chain Management and Inventory Management A diamond in the rough Vonkel Enterprises have recently purchased Thembeka, a company that specializes in the sale and distribution of gold and diamond jewelry. This company designs, manufactures and markets fine jewelry throughout South Africa.
It had previously been a family run business, and following the death of the founder and CEO, family members decided to sell the enterprise. Vonkel saw the potential for this business and purchased it, with intentions of improving supply chain performance. The domestic supply chain involves inbound shipments of raw materials from a number of small suppliers to a manufacturing location in Pretoria. Once the jewelry has been created, shipments are sent through a transportation intermediary to retail stores in Cape Town, Durban and Johannesburg.
The challenges Thembeka face are common to the fashion industry. Rapidly changing styles and preferences require the company to react quickly and adapt designs to suit consumer demands. The peak demand periods occur throughout December and in mid-February, with a smaller demand peak in the spring. The Thembeka brand and style is well established throughout South Africa, and Vonkel decides that it will keep the name to maintain brand loyalty. In addition to making supply chain improvements, Vonkel Enterprises are planning to export their products to the UK.
The jewelry market has experienced a steady increase over the past ten years, and has continued to grow over the past year despite predictions for an overall industry slow-down.
The Kimberley Process is an international certification scheme designed to regulate and prevent the trade in conflict diamonds. Although a certificate is needed in the export of rough diamonds, Vonkel can provide a warranty on their polished diamond jewelry that states the gems From your readings, you might feel that you have a general idea as to how supply chain management works.
However, in reality, the practice of supply chain management can be very complicated.
Questions Courses. Document Preview:. Attachments: Feb 27 PM. Vipul M answered on January 28, Vonkel Enterprises have recently purchased Thembeka, a company that specializes in the sale and distribution of gold and diamond jewelry. Thembeka has experienced an overall profit loss for the past five years.This article will help you to solve a case study in Management.
The current corporate scenario urges the students to know about the practical applicability of management concepts in day-to-day operations.
To get such a practical knowledge case study is one of the vital tools. It enables the students to. Case studies are included in the Syllabus of management degrees in almost all Universities. But the pattern for solving these case studies varies from university to university. Students are not sure about which method they have to follow. This article makes you familiar with some methods to solve a case study in Management. Here you just have to answer the questions given below. And the students get confused about what to do with such type of case type.
The following are the ways in which a case can be solved and among those things whichever is applicable or possible in that you can include it in the solution and solve the case. Introduction: Give a detailed description about the case in two or three paragraphs and cover all the major issues in the case in your introduction.
You have to list the strength weakness opportunity and thread of the company. Strength and weakness stands internal in which the company can have a control over that and Opportunity and Thread stands for External in which the company does not have any control. Identify the Problems: Find out major issues in the case and highlight those problems consider those problems as questions.
Frame the problem in a proper way. Find out the solutions:- This is the part wherein you are going to give the solution for the case exactly. In the previous step you have framed the problems here you need to give solutions for each problem. Consider the problems as questions and start answering for each question. Model 1 You can answer the question straight away about what you feel. Like how you reply to your other theory questions the same way you have to answer for these questions.
You can highlight the subheadings and quote some definition in the answer if any concept is involved in that. Model 2 You can explain your answer by aligning the answer with any theory related to that.
Amazon.com's Inventory Management
This method is not possible in all the cases. This will fetch you more marks but one thing you need to be clear that you must know the theory completely. Model 3 This method will take you in a proper direction.
As said earlier consider the problem as question. Take the question one by one. Find the possible solution for each question. And also write the advantages and disadvantages for that solution. If you have more than one options for the same problem list the option one by one along with the advantages and disadvantages of each option. Finally conclude the question by comparing the option and write the best option among the listed option and support your conclusion.The products required to support differ-ent customer channels varied from expensive long-lead time engineered systems to relatively low-value standalone units that supported personal computers.
The company needed to completely revamp its inventory, manufacturing and product support policies, procedures and practices to reflect the dramatic and fast changes to its product line. The bulk of the problem was in inventory management, there were problems managing the broad mix of products required as well as large amounts of obsolete and slow-moving inventory.
Case Study on Inventory Management Improvement
A cross functional team was formed that included mem-bers from Operations, Marketing, Sales and Finance to evaluate and dispose of excess and obsolete inventories. In purchasing and materials management it was recom-mended that the total purchasing power of the corporation be leveraged to obtain more favorable purchasing and con-signment agreements by centralizing the purchasing func-tion.
At the same time, local materials management func-tions could be strengthened to improve requisitioning and materials usage and upstream supply chain partnerships were established to improve material flow and reduce pur-chased parts inventories.
In inventory planning and management, a centralized logis-tics function was recommended. Written policies and pro-cedures were developed for inventory planning, manage-ment and reporting, and a new forecasting and inventory planning business process and information system was im-plemented.
All inventories are now managed more inten-sively to avoid excess and obsolete inventories and active inventories are deployed and re-deployed based on well defined forecast requirements.
The promotion process was also brought under control to avoid sudden unanticipated demand on the plants, and manufacturing performance criteria was changed from low-est unit cost and high absorption to meeting the schedule in time and quantity to improve customer service levels. Client Case Study — Inventory management.Lean Management Examples from a Variety of Businesses.
The following case studies of lean management principles in action show you how a variety of real businesses solved real business problems under diverse conditions.
We've arranged the stories in 16 categories to help you find the examples you need. There is some overlap. After reading the case studies, be sure to get their personal perspectives on leading change. Feel free to link to this page, but please respect the copyrights of LEI and journalists by not copying the articles.
Are you doing something new or notable in the practice of lean management? Let us share what you learned with the lean community. Join overfellow lean practitioners by subscribing to LEI's weekly newsletter. Thrustmaster Turns Around. Learn how Thrustmaster of Texas successfully adopted lean thinking and practices to make sustainable improvements in a short period of time, and how other manufacturers of highly engineered, low-volume products can follow their lead using the Lean Transformation Framework.
Sustain Your Lean Business System with a "Golden Triangle" After a medical device maker took a hit to margins to fight off global competition, it rebuilt them by lifting its lean operating system to a higher level and keeping it there with a "golden triangle" of sustainability.
Instead, it expands a pull system by connecting the plan-for-every-part database that underpins one-piece flow production with ERP, typically associated with big batch production. Tanner If you are in the "appreciation business", you have to live it in your own workplace. For O. Tanner that meant a lean transformation had to show the company appreciated and wanted people's problem-solving ideas.
Here's a report on that effort, including what worked and what didn't. A lean transformation had taken heavy-equipment manufacturer Vermeer away from batch manufacturing, but batch ordering by dealers was delaying how quickly they got equipment like brush chippers. Herman Miller's Experiment in Excellence At Herman Miller, the lean management effort helps it build problem solvers as well as world-class office furniture.
And as this case study shows, lean practices also helped it weather a brutal recession.Case studies are laboratories where you apply what you learn in lectures and readings to solve supply chain problems in highly realistic simulations. You are welcome to use any or all of them as you wish you can also create your own case studies or we can create them for you. They are listed in the three categories. As you work with these cases you will gain an intuitive understanding of supply chain dynamics and develop the analytical skills for designing and managing real supply chains.
Work individually at first, not in groups, on the three challenges shown in the online intro to this case. That's how you learn to use the software, and how to use simulations to analyze and design supply chains. Then you are ready to work in groups or work on more advanced cases.
Click on the case studies below to see a description and introduction to each case. The humanitarian supply chain is to support the refugees, and the military supply chain supports the military organizations that provide protection for the humanitarian mission.
Every case study has a main theme or concept that it illustrates. You will be challenged to use knowledge acquired in lectures and readings as well as your real-world experience to expand and re-design the supply chains in these case studies. In the commercial supply chain cases you need to improve and expand the supply chains to support new stores and still keep operating costs and inventory as low as possible. In cases that deal with humanitarian or military missions you need to create supply chains to deliver the right supplies to the right locations when they are needed, and do so at a reasonable cost.
The best case to start with is Cincinnati Seasonings after working through the three challenges presented in the online introduction to this case you will be ready to handle further challenges in this case or move on to more advanced cases. Load the Cincinnati Seasonings supply chain model into your account and open it in your Edit screen to see the initial supply chain drawn on a map.
It is composed of one factory, a distribution center DC and three stores. Notice the accordion menu on the right side of the screen; click on the menus for products, facilities, vehicles and routes to see information about these entities.
The simulation begins and runs through some number of days; daily simulation results are displayed in graphic and numeric displays on the right side of the screen. Then a point of failure is found — a facility runs out of one or more products, or a facility accumulates too much inventory and runs out of storage space.
The Edit and Simulate screens are now both open and shown below — each screen is in its own browser tab. As problems are found in the simulations, you make decisions about how to fix them. Flip back and forth between the browser tabs with your Edit screen and your Simulate screen. Make changes to your supply chain model in the Edit screen. Then go to the Simulate screen and run a simulation to see the results of your changes. Depending on the changes you make, your supply chain simulation runs for additional days and other problems arise.
Keep improving your supply chain model until you get the simulation to run for 30 days. This will point our areas for improvement and help you refine your supply chain model to make it run for 30 days at lower operating costs and lower inventory levels.
That is the challenge you work with in SCM Globe, and it is the same one you work with in real supply chains. What works well in SCM Globe simulations will also work well in actual supply chains. So skills you develop here are directly transferable to the real world. NOTE: You can run simulations for longer than 30 — 60 days, but there is usually no reason to do so. This is because most companies do not run their supply chains unchanged for longer than 30 days at a time.
These simulations focus on the tactical realities of operating a supply chain from one month to the next, and finding what works best. As shown in the screenshots below, logon to your account and access the case study library from your Account Management screen. You are welcome to import any or as many of the supply chain models in the library as you wish.Case Study 3: Global Supply Chain Management and Inventory Management A diamond in the rough Vonkel Enterprises have recently purchased Thembeka, a company that specializes in the sale and distribution of gold and diamond jewelry.
This company designs, manufactures and markets fine jewelry throughout South Africa. It had previously been a family run business, and following the death of the founder and CEO, family members decided to sell the enterprise.
Vonkel saw the potential for this business and purchased it, with intentions of improving supply chain performance. The domestic supply chain involves inbound shipments of raw materials from a number of small suppliers to a manufacturing location in Pretoria.
Once the jewelry has been created, shipments are sent through a transportation intermediary to retail stores in Cape Town, Durban and Johannesburg.
The challenges Thembeka face are common to the fashion industry. Rapidly changing styles and preferences require the company to react quickly and adapt designs to suit consumer demands.
The peak demand periods occur throughout December and in mid-February, with a smaller demand peak in the spring. The Thembeka brand and style is well established throughout South Africa, and Vonkel decides that it will keep the name to maintain brand loyalty.
In addition to making supply chain improvements, Vonkel Enterprises are planning to export their products to the UK. The jewelry market has experienced a steady increase over the past ten years, and has continued to grow over the past year despite predictions for an overall industry slow-down. The Kimberley Process is an international certification scheme designed to regulate and prevent the trade in conflict diamonds.
Although a certificate is needed in the export of rough diamonds, Vonkel can provide a warranty on their polished diamond In case of fixed inventory every item has a location assigned to them. Ask your question! Help us make our solutions better Rate this solution on a scale of below We want to correct this solution. Tell us more Hide this section if you want to rate later. I have included a Word File of my professor's instructions.
If possible, I would like you to please include the step by step or an I will post the URL to two blank questions to the person who gets this question correct, then I would simply reward best answers to that person with the correct solution and steps, resulting in 4, Questions Courses.
Hi I will upload the case and has two questions, two pages needed. Please I would like to get correct answers and you have much enough time. Document Preview:. Mar 03 AM. T D answered on June 13, Do you need an answer to a question different from the above? Help us make our solutions better. We want to correct this solution. Tell us more. Was the final answer of the question wrong? Were the solution steps not detailed enough? Was the language and grammar an issue?