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conclusion and recomondation of inventory management.
literature review on inventory management
conclusion and recomondation of inventory management.
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What is a supply chain? Well, a supply chain is a system in which a connection is made between everything together from services to products to meet customer satisfaction. “Supply Chain is an interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers.”[1] The related parties can be directly or indirectly related in keeping the customer requirements. [2] Some example of members of a supply chain is transportation, manufacturing, sales, and the customer. [2] The main goal of having a functional supply chain is to keep the customer happy.
Supply Chains are used in services and manufacturing. Services that incorporate a supply chain are used for providing and driving the need to support the elements of the services it delivers. [1] Manufacturing utilizes a supply chain in order to control inventory and production flow. [1] The performance of a supply chain is measured through the following ways:
• Inventory Measures
• Financial Measures o Total Revenue o Costs of goods Sold o Operating Expenses o Cash Flow o Working Capital o Inventory Placement o Mass Customization
Inventory measurement is a method that controls the inventory count of units, volume, and weight. [1] Supply chain is measured financially because it can make a huge financial impact on the company in question. [1] These measurements are taken because the ultimate goal is to make money. Without having methods in place to account for these measurements, there is no sure way that the company is benefiting and making money. A supply chain is a dynamic system and there is a constant flow of money, products, and information. [2] An important aspect of Dell’s company and their supply chain is customer satisfac...
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...an interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers.”[1] Dell’s supply chain is an interesting case study in supply chain operations because of its unique structure. Instead having a traditional brick and mortar store, dell sells most of its product through the internet. Selling most of their computers through the internet means that they do not have to have finished product. Because they do not have finished product rely to sell to the customer Dell can offer computers with near unlimited configurations. [11] This gives Dell advantages over their competition. Additionally, their unique supply chain allows them to quell the bullwhip effect, which typically plagues traditional supply chains. As the understanding of supply chain operations grow, Dell needs to be studied and understood further.
On many occasions, Apple Inc. has been voted to boast the most efficient supply chain in the world. By leveraging wealth and pure business strength, Apple has been able to construct a supply chain that is both efficient and highly profitable. While much of this supply chain construction has come from great investing and business decisions by Steve Jobs and Tim Cook, it has come at the cost of many factory workers’ well being overseas. Overall, the construction of the highly organized supply chain has given Apple a competitive advantage over the rest of the market.
Once they develop and implement this inventory control system, inventory records are going to be upheld truthfully and that they will get the accurate standing of the inventory up-to-date. In order to maintain the steady continuous supply for production need... ... middle of paper ... ... ory holding costs, ordering costs, and shortage costs, and have a classification system for inventory items. In conclusion, while reading the case study, I saw much disorganization throughout the company’s entire system.
Michael Dell is the founder and CEO of Dell Computers Inc. one of the largest sellers of personal computers in the world. His contribution to the computer industry is the “one-to-one relationship between the company and the customer— there are no intermediaries, no middlemen” (Krames, 2003, p.59). Not only did he relinquish the middleman, he also perfected combination of the bottoms up strategy and the just-in-time (JIT) by waiting till he received orders from the customer to build computers. In doing this, Dell increased its return on investment (ROI) while reducing its inventory overhead cost.
A supply chain consists of all operations involved in a company from production, distribution, to final delivery of an output to consumers. However, the supply chain of goods differs from that of services in many perspectives. Therefore, the commodity analogy is inappropriate for services industry.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart.
It is used to help with both of the suppliers and customers to manage the ordering process. It can help to control the availability and flow of goods to become more accurate. Walmart has used this system because it can benefit both of the suppliers and customers. To benefits the suppliers, this system may help to maintain the predetermined inventory and avoiding the problem, such as stock outs. Then, for customers, it shows that it may help to reduce uncertainty. This system will help the supplier to prepare and schedule its own production, in order to exhaust of inventory. Manufacturers became responsible for managing their products in Walmart’s warehouses. So, by using this vendor managed inventory, it shows that Walmart was able to expect close to 100% of order fulfillment on
“Supply chain. Product life cycle processes comprising physical, information, financial and knowledge flow or movements whose purpose is to satisfy end-user requirements with physical products and intangible services from multiple, linked suppliers.” In other words, supply chains compose a network of different companies that cooperate closely for goods delivery.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.
"A lot of companies think of supply chain as a cost centre. They don’t always see it as helping to funnel top-line growth." Supply chain touches practically every part of operations inside an organization: from determining client interest, to sourcing crude materials, to assembling, distribution and returns Supply chain is to adjust supply and request, for example the demand for goods and services. You need to get the right quantity and quality of goods and services
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Supply chain would not be efficient and receptive if inventory wasn't been able properly. Inventory management is definitely a way of carrying materials from raw components to the final customer, thus managing the movements and flow throughout the supply chain. Without inventory managing, supply chain movement would certainly not in existent. Every method must be managed in line with the fulfillment in the ultimate priority that is the fact that consumer pleasure. Supply chain carries investment to fulfill uncertainties and mismatch regarding demand and supply. Smart management of the supply chain is gained by integrating the strategies business processes of the partners within a supply chain in order to make certain the flow and storage can be coordinated as this can be completed within the functional area of products on hand management as well. In summarize, effective supply chain supervision is performed by having a good inventory management. The two ought to end up being coordinated with each various other especially in monitoring the flow of inventory within just the supply chain. Any mistakes with the inventory guidelines would consistently influence the supply chain that's why investment management and supply chain administration processes should be included that may result to the success of a company if enforced successfully and effectively. Also, it's significant that managers should consider to take actions in lowering the quantity of inventory required in purchase to decrease cost expected thus raise the responsiveness in the supply chain. If inventory can be managed successfully then presently there would most likely a good management of supply chain as well. They're connected with each other with one another and if one of these doesn't fit with the other, after that it'd certainly lead to the
These major supply chain components that have shaped Walmart’s success over recent years are their buyer bargaining power (one of Porter’s Five Forces), focus on the overall customer experience, and investments in emerging technologies along with the implementation of these technologies in their business plan. The third and final key trend in which all of the top 25 supply chain companies possess emerging digital business models. Over the past couple of years, Walmart has boosted its e-commerce operations and brought in a large portion of revenues from online sales (Aronow & Burkett, 2015, p. 20). Gartner Inc. describes Walmart as a “supply chain pioneer” that has continued its push into e-commerce and has expanded investment in multichannel drive-thru pick-up centers and a ‘click-and-collect’ grocery service offered at some of its stores (Aronow & Burkett, 2015, p. 20).
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...