What type of inventory control system would you suggest to Jim Reed? Jim Reed is aware that his company inventory must serve its purpose of maximizing the profit. At the present time the approach is to lower the inventory and improving his service levels. The inventory reduction is to attack the methodology in two directions. (1) optimizing inventory levels and view the order fulfillment process (2) changing the way we currently process order fulfillment. A storewide sale of the inventory will eliminate overstock items. The overall goal is to sell inventory at full price, but reduce price is an option. The company advertisement skills have to benefit the immediate sale of the product at all cost. The company must generate cash and if all else fails donation to charitable organization will benefit tax but not help with immediate cash flow because the tax write-off and lower holding costs alone will make it worthwhile. What type of accounts receivable control would you suggest to Jim Reed? In the business meeting Jim Reed and Harold Holmes final outcome is the cash flow is crippling the business with need to reduce the inventory and stabilize the accounts receivable balances. After careful consideration Jim is seeking outsource counseling to help in reducing the inventory without sacrificing customer relationships and maintain good will. “A simple interest-only loan is suggested and secured with a UCC-1 lien, which is made against the value of the accounts receivable of the business. The loan proceeds are distributed to the business owner who invests them into either an annuity contract or life insurance policy. The bank will take additional security with a lien against the annuity or life insurance policy and protect the accounts receivable by effectively “equity stripping” the asset by way of the UCC-1 lien”. (2008, Adkisson) With this financial program it will create significantly more money for the business owner than if nothing were done. This will help the…
accordance with the provisions of the National School Lunch Act and the Child Nutrition Act of 1966. The department maintains three distinct types of inventory at each of its production cafeterias. Purchased food, purchased supplies, and United States Department of Agriculture (USDA) donated foods are each recorded and reported separately in a daily inventory book. Purchased food includes all food items that are purchased from commercial vendors. Purchased supplies include all supplies such as disposable…
Stochastic Inventory Control with Carbon Emissions Regulations
October 27, 2013
This study analyzes an inventory control problem of a company in stochastic demand environment under
carbon emissions regulations. In particular, a continuous review inventory model is investigated under
three regulation policies: carbon cap, carbon tax, and carbon cap-and-trade. We analyze and compare
the optimal (Q, R) policies under each carbon emissions regulation policy. Furthermore, the eﬀects…
In this scenario, we have two competing manufacturing companies; Company A and Company B, Company A having larger inventory than Company B.
Company A (with larger inventory) will have the following advantages:
Lower ordering costs: For the raw materials they will be able to spread the fixed ordering costs over a larger amount of goods.
Quantity discounts: For the raw materials they would be better positioned to request quantity discounts because they would be ordering in bulk amounts.
In manufacturing organizations
aggregate planning means determining
the size of the work-force, the rate of
production and inventory level that are
needed to implement a production plan.
In service organizations aggregate
planning means scheduling staff to
meet customers' service needs.
ADM 3301 ~ Rim Jaber
Steps in Planning Process…
This inventory was done on the author’s fuel expenses for the past 48 months. From December 2008 to March 2009 little was spent on fuel. Roundtrip work commute from Santa Ana to Long Beach was 40 miles. Fuel expenses went as high as $90 and as low as $64. The reason for the low fuel consumption was due to the author primarily riding a motorcycle. However, in early April the author had an accident on his motorcycle and was forced to use only his car. Therefore, from April 2009 to August 2009…
The primary inventory of both Denny’s and Red Robin is consisting of food and beverages, but Red Robin has supplies inventory in hand also that is 2/3 of its total inventory.
Inventory of both Denny’s and Red Robin is valued primarily at the lower of average cost or market, which means it use first-in, first-out ( FIFO) method to compute its inventory and cost of goods sold. Therefore, Denny’s assume that the dated purchases or inventories are sold first. Under this method, the inventory…
Simple and inexpensive ways
Inventory control and
to reduce waste and Cut COS& practices can reduce both
the toxicity of waste and
are simple and cost-effecthe amount of a product or package that is destive pollution prevention measures that can be
tined to become waste. Clearly, such practices can
applied-by virtually any company, of any size, in
minimize the waste that results from overpurchasany type of manufacturing or service…
change simultaneously. If the supply chain network design stayed the same, the company would lose sales without the appropriate capability. Also, in order to meet the increasing demand, the cost will increase at the same time, like laboring cost, inventory cost, transportation cost and fixed facility cost. Therefore, the supply chain network design of sportstuff.com has to change to meet the demand. The allocation of warehouse will involve different cost and affect the efficiency and responsiveness…
Forecasting demand and inventory management using Bayesian time series
T.A. Spedding University of Greenwich, Chatham Maritime, Kent, UK K.K. Chan Nanyang Technological University, Singapore
Batch production, Demand, Forecasting, Inventory management, Bayesian statistics, Time series
A typical scenario in a manufacturing company in Singapore is one in which all the strategic decisions, including forecasting of future demand, are provided by an overseas office. The…