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Case study on factors affecting inventory management
Disdvantage of inventory management
Disdvantage of inventory management
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Introduction “THE GOAL” by Eliyahu M. Goldratt and Jeff Cox is about Alex Rogo, who’s not only battling family issues at home but as being a manager over a plant, has also noticed that their profits have been declining over the last few months. Alex then was told he had months to help the company to get back on track or the company will shut down. Alex then reunites with an old physics instructor from college names Jonah, who helps him realize his future goals for the company and the measures that need to be implicated, in order to save the company. Alex and some employees from the company finally get the plant up and running again and all received promotions. In this research paper, I will be going over ten principles from the book that …show more content…
Without good customer service and keeping your promises, your company would have loyal customers. According to 5 Focusing Steps, “If you’re not yet sold on the idea, consider that a 2 percent increase in customer retention has the same effect as decreasing costs by 10 percent. Not only that, but it costs over six times more to get a new customer than it does to keep one.” Customer satisfaction should be a golden rule of all companies. For an example, while working for Chick-Fil-A, the managers would not only train the new hirers in their positions, but also train them to say “My Pleasures”. Which shows manners and respect, but also creating a hospitality environment for their customers. Without customers your business wouldn’t be running. Also, if a customer had a complaint about their food, we would not only apologize for the situation, but also give them complementary coupons to use on their next orders. Being curious to your customers really matters, because it shows that you care and that their business matters to the company. Even having a suggestion boxes for your customers, so that your business can get feed back and know what areas are needing improvement in will also matter as …show more content…
Which in fact was a great idea, when thinking about the production level of the company. But in all actuality instead of helping the company, it created large amounts of inventory back up and slowed down the speed necessary to accommodate the throughput offered by the automated equipment invested for the company. Managing Excessive Inventory For a company to have an excessive amount of inventory usually cause by poor managing skills. This will also result to not planning to keep track the life cycle of their products, forecasting stock demands, and also replenishing the inventory that’s out of stock. Excessive amount of inventory usually means there is a lost of profit being made someone. Where it is the consumers not purchasing the goods anymore or your company is hurting from not selling the goods and letting the inventory stack up. Even though excessive stock could be an advantage when it comes to the different seasons or could even mean there is a higher service rate, also a demand for that product. Could also be consider as a safety stock, which could be consider for having that leeway of products for your busiest seasons like the holidays. Without a plan when it comes down to inventory, you might face a financial burden if you don’t keep track of what’s happening inside of your business.
In order for a company to push its improvement and create a balanced plant, it is necessary to increase the throughput, while reducing inventory an operating expense. But, what is most important is to identify the bottlenecks to be able to focus on them. After focusing and solving the constraints, everything else is going to be less powerful but important at the same time.
Customers are in awe of the stance this company has taken not only for the customer service but the way they tend to care and want the best for their employees. It has been proven time and again that a great management team can create a great working atmosphere and that initially trickles downhill to the other employees that are hands on with the customers. It’s simple, happy employees equal happy
Identifying the problems of the factory start with the Alex Rogo’s self-questioning about why the company cannot respond to received orders in time. After Alex meet and make a little conversation with his old physic teacher Jonah, he started to ask himself the most important question: What is the ‘goal’? The actual goal had to be more important thing than the delivering the delayed products.
Successful customer service is listening to, understand, and respond to customers is one principle that would be the primary that would assist in the customer service industry. The company mission statement or vision of what the company expects would be clear to all of the employees, to show a positive service quality is primary outcome. Company’s set standards and monitor them for the standards. There is some margin of error that is acceptable, but their goal is 100 percent customer satisfaction. They hire and train employees well and continue the education and training throughout the employment to stay abrupt on the customer service standards and the changes in the goals per year. Recognizing and awarding the employee or a group for accomplishments, show that the company appreciates the hard work and excellent customer service that the employee gives their
Usually, businesses tend to keep inventory levels high so as to effectively meet uncertain and quick changing demands of its customers. However, keeping high inventory always proves costly for them. Thus to reduce warehousing or storage costs, these companies hold limited stocks of products just enough to meet fluctuating consumer
Inventory management is the first line of defense for a restaurant in keeping their customers safe and free of food borne illnesses. Also this is a cost effective measure to ensure that you are receiving exactly what the distributor promised you when you placed your order. Taking into consideration the full operation of your restaurant nothing else matters unless you have a grasp on inventory management.
I believe in some industries inventories will not be needed in the future, such as in the music industry and also the film industry, with the likes of Netflix and Hulu Plus coming in to dominance. In there area I believe there influence is only going to continue to grow. However, Inventory is hugely important in nearly all other business. For the like of manufactures whom need raw material inventory to create and assemble their products, in which retailers and distributors then purchase as inventory to sell on. Inventories are important for sales, as the company wants the product on hand to sell when it is in demand. Not having it on hand could lead to a loss of a sale and may not only just a lose a sale but this may lead to losing a reoccurring
Gain customer satisfaction and loyalty: Satisfying customers will help to make customers more loyal and less tempted to go to its competitors. Now a-days Customer loyalty matters because selling more to existing customers is easier, and cheaper, than finding and selling to new ones. Loyal customers tend to buy more, more regularly. And they will frequently recommend your business to others. In this case, the NHS will have to provide patients with good health service. But patients are less likely to
...990) is of the view that firms that do not have good inventory control will have higher costs and will affect the cash flow of the firm. Also, poor inventory control encourages theft by employees.
Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.
However, not only the high quality standards of food affects the business, the staff who are presently providing the service are entitled to establishes him or her self with their tone (the sound of the voice), manner (the level of maturity), language and body language well enough to satisfy the customer and to make them appreciated of feeling more welcomed and values them as a proper customer. E.g. if a customer was about to speak the staff operating the till would say hello, may I take your order please,' and when their products are given Thank you and please come again.'
Great food, high-traffic location, and super decor -- all are important to the restaurant business. If you take a close look at what separates the most successful restaurants from the less successful, you will find that all excel on these parameters. In successful organizations, the voice of the customer drives operations. In this paper, I am presenting two different personal customers service encounters, one at McDonald's, and the other one at Tony Romas.
Feedback is one of the most important elements to a businesses success. No matter what the business, all have to deal with two constants, customers and customer satisfaction. These two things lay the groundwork for a successful business. The customers come from various types of media strategies such as advertising, mail-order publications, public relations, retailing and merchandising, sales, market research, and prices of goods. In order for a business to be competitive in its market the business must know what the customer wants, what price the customer is willing to pay, why the customer would buy one brand over another and other feelings that customers need met that would make them buy your product or service. Great customer service is the difference that makes the difference, whether your customers deal repeatedly with one representative of your company or with a different person each time they call, whether you do business face-to-face or electronically.
At any given time interview can be done with those in customer service and one thing will always remain there will always be unhappy customers. Anyone can search the internet and easily find many stories of customer complaints. There is even a website that allows small business to post complaints of those customers that are never happy. This brings the question is the customer always right? Looking at the current nature of business technology has made so many advances. Yet according to Bloomberg Business the upset customers are on the rise (Bloomberg). The industries that seem to be the most affected are those of the retailers, cable and satellite providers, and banks. This is in large part to the inability for the company to give the customer a lasting experience. The customer is left with unanswered question or the feeling of being swindled. The golden rule gives a great guideline to any manager facing an angry customer. How would you want to be dealt with? The manager can turn things around easily if they take the time to understand the issues in which the customer is upset. According to Forbes there are seven ways to handle u...
This required another whole set of training. I was trained for the first time at a banquet hall a few hours before a meal was served. My boss and my other supervisor were very clear as to how each step should be performed. I was taught how the table should be set and how the silverware should be wrapped. I was also taught how to interact with the customers. There was a specific way to ask for the orders and a specific way to ask for refills and empty dishes. My boss and supervisor were always ensuring that the customers were happy. In the textbook Services Marketing: An Interactive Approach, the authors Fisk, Grove, and John discuss customer service. They specifically say “if customer loyalty is driven by customer satisfaction, and satisfaction is driven by perceptions of quality of the service provided by the organization, then the key to customer loyalty lies in creating and delivering superior quality and customer experience” (Fisk, Grove, John, p. 147, 2013). I was trained to think this while I was at work. I was told several times that I should strive to satisfy the customer. When the customers aren’t satisfied, they will probably not return. Not having return customers is very detrimental to service organizations. In the textbook Services Marketing: An Interactive Approach, authors Fisk, Grove, and John state that “Losing a customer is expensive. Consider first that a new customer must replace a