Supply chain management - Case Study Example

1. The main problem of Midwest Entertainment (MWE) identified in the case study is related to failure to deliver or meet the demands of the sout of the inventory. It can be seen that the company is currently operating at 12,5 % of the service level. At one given period, it has a minimum of 250 units in order for it to restock its inventory. The company should carry at least 50 % safety stock at any given point. This means that it can have about 1000 units at a particular moment stored as safety stock.

This helps to cushion the company so that it does not completely run out of stock while waiting for a new delivery. Increasing the safety stock will positively impact on the operations of the company since it may be able to keep enough stock which entails that customers are not turned away empty handed. 2. Mr Flint should maintain the intermodal method of transportation of the MWED10GD which costs $4000 per load of 2000 units. This will help the company to maintain the costs at a lower level than to opt for the direct truck model which would increase the costs.

The products supplied remain the same while the price does not change. This can strain the company in terms of revenue generated. Therefore, it would be wise for the company to increase the safety stock so that the customers would get something rather than wait for the next consignment. Through maintaining costs at a minimum level while increasing the level of stock will help the company to generate more quick returns in terms of the revenue it generates.