The company is facing an increase in inventory level balances with too much capital tied up in inventory preventing it from using its capital towards international expansion. Option 2- Outsourcing Warehouses The company can outsource all its warehouses to Global Logistics and the company will then manage the warehouse and the company will be charged based on product weight and delivery distances. Unbeatable pipe craftsmanship and quality found only at BadAssGlass. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. We cannot be responsible for further damage that may have occurred during shipment. These figures indicate two things.
Students must complete a quantitative analysis of the costs and benefits of several alternatives. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Therefore, using the formula provided, optimal fill rates were found to be 95. Conclusion Based on the calculation performed Excel sheet , it can be seen that the level of inventory required will be minimum if the company goes with option 3, which is not to dispose any warehouse but instead it would restrict the managers to order inventory, which is needed by the company while other two options require a significantly higher level of inventory and therefore, the company should go for option 3………………. These expenses would further limit the company to use their existing capital in other areas such as research and development and expanding to international markets.
We believe this is the key to our success and the continued growth of our company since 1975. Beane discovered that the company incurred costs as high as 10% of the gross margin for products that customer's ordered but were not available in the warehouses. However, the new shipment company being considered Global Logistics offered an additional facility of 1 day premium delivery apart from the 3 day regular shipment. Overview Scientific Glass Apparatus Corp. Secondly, outsourcing the warehousing function would transfer some of the responsibilities to the Global Logistics resulting in a lower total cost. For more information, please visit for a description of our custom plastics, and a listing of the products that can be made with each specific plastic. In the first section the issues that the company is facing have been highlighted.
Excess inventory is tying up extra capital needed to fund the company's expansion plans. Be very slow with this process as rushing through it leads to missing key details. And it must be mentioned that, throughout the case, related points are referenced to the case text and lecture notes with corresponding page and paragraph numbers. Issues The company was facing some serious inventory and financial issues which was hindering the growth and expansion of the company. This includes both internal warehousing and outsourcing. You have to recommend business unit level recommendations. These changes may require adding warehouses or outsourcing fulfillment services.
Engineered for maximum function, scientific glass is equipped with elaborate percolators to diffuse and filter your smoke. When we are writing case study solution we often have details on our screen as well as in our head. To stay at leading position in such a highly competitive industry, the company had established its own dedicated direct sales force along with the attempt to increase customer service levels and improve customer response times by adding additional warehouses. In the second section, the issues have been analysed and finally in the last section the various proposed alternatives have been discussed thus arriving at a conclusion. To evaluate the four warehousing options, detailed analysis were conducted on four main aspects, including transportation costs, average inventory levels, optimal fill rates and other costs. Scientific Glass International and its employees strive to continuously improve our systems, process and techniques, utilizing innovative ideas to increase our customer's overall satisfaction.
The response time will significantly increase for customers who are in different regions but the customer service level will remain high as main war Scientific Glass, Inc- Inventory Management solution ehouse will usually have stock prepared in advanced. Most minor lab glass breakage can be repaired at a fraction of the cost of replacement. Inventory management thus involves continuous monitoring of inventory levels, smart planning and quick decision making in the part of management of a company. Finally, considering the trade-offs of these evaluations, a conclusion is made. The company has launched several initiatives, such as adding a dedicated domestic sales force, which directly affect inventory requirements. Different strategies have been introduced such as adding a domestic sales force team to control holding cost of inventory, improve the customer responsiveness to control the fill rate Time spends to fulfill the new order. Intel uses quality management practices to lead to superior quality outcomes and increased quality performance that appear… 1485 Words 6 Pages 2.
As explained in our workbook, using standard costs enable managers to identify in advance material, labor and. The company has launched several initiatives, such as adding a dedicated domestic sales force, which directly affect inventory requirements. In this case write up, I will analyze Beane's proposal, current alternatives, upper management's decisions as well my own recommendation on this issue. Scientific Glass International and its employees strive to continuously improve our systems, process and techniques, utilizing innovative ideas to increase our customer's overall satisfaction. We pledge to meet our customers highest expectat. Let us evaluate your damaged glassware and you will be notified of the extent of the repairs and the cost before the repair is performed.
As mentioned in the text, there is an identified increasing trend in the balances of inventory levels. This is just a sample partial case solution. Ava Beane was hired to address this very issue. Prior to that, it was more concerned with increased sales and customer satisfaction. Scientific glass pipes include bongs, dab rigs and hand pipes with a clean and sleek appearance that resembles something you'd see in a lab. It separates different processes in the production from each other.
Submitted by: Danielle Fontaine Kimberly Martilla Lauren Russell Dr. The newly hired Manager of Inventory Planning is tasked with developing an effective strategy for managing inventory without requiring additional capital investment. Policy Changes Some policy changes were proposed as an outcome of the brainstorming session: Sufficient inventories only to meet customer fill rate of 99% and avoid surplus inventory Discontinuation of trunk stock maintenance by sales executives Daily reports and weekly summaries of inventory movement for every warehouse Periodic physical audits and control procedures for all warehouse stocks Evaluation of the Alternative Options The alternative options proposed can be evaluated on the following grounds: Inventory Levels: The inventory levels to be maintained should be sufficient to abide by the policy of 99% customer fill rate. Change in the warehouse structure Change in the existing policies or implementation of new ones Warehouse Structure In order to change the warehouse structure the options of centralization, outsourcing were considered as opposed to the existing structure of decentralization. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. In addition, when this inventory level kept under control, debt to capital ratio will be saddled since extra capital tied up in the inventory will be available to be used. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
First to restructure the logistics and supply chain by changing the number of warehouse functions, and secondly by implementing the proposed policy changes. Secondly, the main warehouse in Waltham, Massachusetts was kept along with a warehouse in the West, eliminating the rest of six warehouses. To stay at leading position in such a highly competitive industry, the company had established its own dedicated direct sales force along with the attempt to increase customer service levels and improve customer response times by adding additional warehouses. This would have no effect on the customer responsiveness time as the customer service level may not remain same. We can also grind as large as 14'' diameters and meet almost any tolerance. Please place the order on the website to order your own originally done case solution. Scientific Glassware is a fast-growing, privately held company that provides specialized glassware for laboratory and research facilities.