Good inventory management is crucial for the overall success of Wegman’s and every other business entity’s operations. Inventory management is concerned with achieving a high level of customer satisfaction and maintaining inventory costs (Stevenson, 2015, pg. 550). Ultimately, customer satisfaction can be achieved by having “ the right goods, in sufficient quantities, in the right place, at the right time (Stevenson, 2015, pg. 550). This requires proficient understanding and expertise of the company 's supply chain, inbound and outbound logistics, and inventory management systems and constant communication with those working in these areas. Continuously, controlling inventory costs is essential to good inventory management. This assertion is based on the fact that inventory is usually one of the major assets of a business, and “represents a major investment that is tied up” until it is sold (“Inventory Management,” n.d.). With this being said, poor inventory management could be a major cost to a business such as Wegmans. These imposed costs could be caused by missed deliveries, lost sales and customers, and production bottlenecks. Furthermore, an overstocked inventory could result in fixed costs from tied up space and investments (Stevenson, 2015, pg. 550). These results...
... middle of paper ...
...yield the largest cost management benefits in the near and middle term periods” (“ABC Analysis,” n.d.). Therefore, the implications of this goal devise the reasoning behind why the ABC approach is categorized based on item costs. This method allows the managers to more closely analyze and keep track of the various costs of inventory. Thus, this classification system would greatly benefit a company with large and varying inventory like Wegmans. In order for a business such as Wegmans to implement this particular approach, they must first identify the items of analysis, collect data on these items, sort the inventory into categories, and calculate the various item costs including the accumulated financial impact on the company. After these steps are implemented, Wegmans can then analyze these classes and make appropriate inventory decisions (“ABC Analysis”, n.d.).
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Inventory management is a topic that has been captured the attention of academic and business communities for long time. Of the most important points that investigated by academicians and practitioners for decades is the selecting of the Economic Order Quantity (EOQ). As the name suggests, EOQ is the order quantity that minimizes total inventory cost. Despite the many variants of the EOQ that have appeared in the literature to fine tune it to reality, it still has limitations. A major one is that it does not take into account the hidden costs inherent in inventory systems.... [tags: production, thermal systems]
1943 words (5.6 pages)
- Operations Management Gap Analysis of Contemporary Organizations Introduction The paper carries out gap analysis of operations management in contemporary organizations. The objective is to apply the concepts learned during the course on real-life situations. Both qualitative and quantitative methods have been used in this analysis to assess the shortcomings in current operations of several organizations. The sources for secondary research on the subject are journal articles and published books; while primary research has been carried out through interviews with key management figures in organizations.... [tags: Inventory, Management, Operations research]
1439 words (4.1 pages)
- CHAPTER ONE INTRODUCTION 1.1 Background of the Study Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed... [tags: Supply chain management, Supply chain, Inventory]
1043 words (3 pages)
- CSC3009 ASSIGNMENT 03 – CASE STUDY 2016 Objectives of public administration when opting for an ERP system In today’s context even the government agencies are evaluated with respect to their productivity and competitiveness, as with the business organizations. This is because, the economy and the social well-being of a country or society depends on the efficient functioning of the government services. Implementing an ERP system in the government agencies enable them to reconstruct and improve the internal processes related to providing government services to the citizens.... [tags: Management, Enterprise resource planning]
2054 words (5.9 pages)
- “Effective procurement affects inventory control by obtaining the right items in the correct quantity for the best value” ("Inventory Management and Tracking Reference Guide," 2012, p. 28). It is important for foodservice industry to have proper equipment and suppliers, to support the receiving protocols, enable efficient transportation and store the diverse food items safely and conveniently (Doty, 2004). Stores management and procedure operations are important aspect of procurement cycle which will help the business to run smoothly, more efficient and effective.... [tags: Inventory, Supply chain management, Procurement]
1120 words (3.2 pages)
- How have a good management in the supply chain Nowadays, one of the most important objectives for all companies is to offer goods at the lowest cost, without leaving the standards of quality and customer service. The supply chain is a key factor to success in the business operations of companies, since it represents effective logistics management. Companies around the world are implementing the supply chain management because is considered as a powerful new source of competitive advantage. The supply chain management has an important role to play in moving goods quickly to their final destination.... [tags: Supply chain management, Logistics, Management]
767 words (2.2 pages)
- The integration of IT with logistics management is an important prerequisite for good logistics management. An electronic commerce portal can be used as a marketing channel in collaboration with existing intermediaries or through bypassing mediators disintermediation will provide high leverage opportunities to the logistics function and increase its flexibility. Hence the development of E-Logistics gets to be fundamental for accomplishment in worldwide operations examine the advancement of electronic markets in logistics with logistics financier frameworks (LBS).... [tags: Logistics, Supply chain management, Management]
1796 words (5.1 pages)
- Management and Operations Management Theory ABSTRACT This paper defines the four functions of management and the operations management theory. It then provides an analysis of how the functions of management the operations management. THE FOUR FUNCTIONS OF MANAGEMENT Planning: It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined. Organizing: To divide the work force into specific groups and giving each group a specific task.... [tags: Business Management Managing Essays]
1287 words (3.7 pages)
- The Interrelationships of the Four Management Functions Over recent years companies have become less dependent on paper and more dependent on technology. Take American Honda Motors for example; the Davenport Parts facility recently converted computer systems to more efficiently manage its inventory. Prior to its new system months of preparation was needed in order to ensure a smooth change over. Without the four basic functions of management all working together success would not have been possible.... [tags: Business Management Manager]
819 words (2.3 pages)
- Management Science A discipline(a branch of knowledge)that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors ,management science is also called operations research (OR). A rational, structured approach to problem solving and often takes a quantitative view of decision making. History of MS/OR Origins in World War II, when the United States and Great Britain employed mathematicians and physicists to analyze military operations to make most Effective Utilization of limited military Resources through the use of Quantitative Techniques.... [tags: Business Employee Management]
1546 words (4.4 pages)