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Analysis of Parts Emporium Inc - Case Study Example

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Summary
This essay discusses the sale distribution center of automobile parts Parts Emporium Inc which was founded by two auto mechanics. The increasing preference towards longer car ownership and the wider choice of inventory significantly contributed to the speedy growth of the business…
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Analysis of Parts Emporium Inc
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"Analysis of Parts Emporium Inc"

Download file to see previous pages The relocation to still larger premises in the suburban Chicago considerably helped to increase the utilization but the sales remained constant. The founders, therefore, hired an outside manager to improve the performance.
The new manager, Sue McCaskey found that the firm did not have the well-defined inventory system that could track the sales and customer trend towards specific auto parts and services rendered. While the physical verification of the inventory was carried out regularly but the lack of necessary records made it difficult to predict the stock of requisite parts that would be required by the customers. These were the major factors for the stagnant sales performance.
McCaskey studied the inventory and sales pattern for two of the products; exhaust gasket and drive belt to show the advantages of having good inventory and sales management system that would help identify the short inventory of the products that have good demand. The information thus generated would promote better management of the inventory. Sales and purchase are the vital elements of an effective distribution center. It would, therefore, help device strategies and plans to increase its performance outcome. ...Download file to see next pagesRead More
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