We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

A Case study on Champion electric - Essay Example

Comments (1) Cite this document
Necessary inventory is essential when they meet the needs of customers, due to demand or supply, hence referred to as buffer stock. The management concern on the high inventory was as result of the unnecessary products that needed to be dusted off as they were less purchased or not purchased at all by customers…
Download full paperFile format: .doc, available for editing
Polish This Essay98.7% of users find it useful
A Case study on Champion electric
Read TextPreview

Extract of sample
"A Case study on Champion electric"

Download file to see previous pages In addition, the management declared that it already had profitable products, as well as buffer stock. The high inventory levels accumulated pace for the piddy items that were necessary, yet the company did not have any. When a customer ordered a product that was not available, the company had to re-order it, thus wasting a lot of time for the customer.
The balancing of too much inventory that may lead to high costs and few inventories that may yield to loss of sales is the main concern for this management. Nevertheless, a firm holds inventory with an aim of reducing costs and in order to improve customer service. The management of champion electric is concerned with the need of meeting customers’ demands, thus the need for high level of stocks. In this case, they will not loose out on sale due to lack of a product. In addition, bulk buying reduces cost incurred as manufacturers grant a fare price for the bulk buying, hence a company is guaranteed of making profits once it has bought goods at a fair price.
However, some goods tend to be irrelevant, as they are remodeled by manufactures, thus, customers request for the latest model of a product. Moreover, Champion Electric lacks the latest products, as its records indicate almost a 100% in stock.
Barb is given the task of getting rid of the less purchased products in order to create space for new products. A disadvantage arises here, in that, a cost is incurred in terms of storage, and when these products become outdated, the company loses money. Nevertheless, high levels of inventory may mean higher sale if the products’ prices rise, and also decrease the risk of fall in supply in the future. According to Hobbs Dennis (p.59), high inventory levels lead to high overhead costs, the stock requires a lot of space, which leads to overhead costs; therefore, it is important for Barb to introduce inventory management. The main fear of too high inventory is that it may yield to idle stock that is not purchased, which counts as a loss in any business, as the stock does not yield any returns. What would you suggest to Barb as steps to take in addressing the concerns of president Campos? The level of inventories is mainly affected by demand, uncertainty, and the supply chain flexibility. Competitive advantage cannot be achieved by only high inventory levels; however, the ability to manage supply chain is necessary. Effective inventory management ensures that a company maintains an ideal level of product; as it acts as a key to attaining a competitive advantage for any business, such that, management and control of inventory may yield to customer satisfaction and profitability of a firm (Toomey, p.1). First, Barb should collect accurate data on the number of inventories available in the store, which also involves keen observation on the number of stocks leaving and entering the stores. Accurate entries on every stock receipts should also be considered; however, though inventory management may seem expensive, it assists in monitoring the flow in and out of goods. Inventory management is important to any firm, in that, it influences supply and demand of a product. In the champion electric case, some customers demand for products which the company has run out of; however, this may ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“A Case study on Champion electric Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/management/1429364-a-case-study-on-champion-electric
(A Case Study on Champion Electric Essay Example | Topics and Well Written Essays - 1000 Words)
“A Case Study on Champion Electric Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1429364-a-case-study-on-champion-electric.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
baileydamian added comment 4 months ago
Student rated this paper as
I didn’t know how to start my document. "A Case study on Champion electric." helped me out a lot! Especially the list of introduction was valuable.
Managing Processes Through Lean Six Sigma
In the years that followed, Six Sigma will play an instrumental role in propelling Motorola to a leadership position in the electronics industry, on back of saving the company billions of dollars in production costs and greatly improving production efficiency.
6 Pages(1500 words)Term Paper
The case study 1-1 lincon Electric
Explain how you have used module concepts and frameworks in your analysis………………………………………………………………………………………………….3 Section B…...…………………………………………………………………………………………………7 “Lincoln could enter India by acquisition, by joint venture, or by building a new plant on its own” (case p.
12 Pages(3000 words)Essay
Lincoln Electric Business Case
Although, they have wide range of products in their portfolio, arc-welding products are their mainstay business. It is because Lincoln Electric mainly started as the manufacturers of arc welding equipments, and has been one of its leading manufacturers for many decades throughout the world.
9 Pages(2250 words)Essay
Detroit Electric Case Study
These activities outline what exactly the person performing the job is supposed to do. Each division within the organizational structure has all the obligatory resources and utilities within itself so that it can produce the expected product according to Robbins (2007).
4 Pages(1000 words)Case Study
Presentation Guideline: The Case for Electric Cars
Key point 1 - You need to drive an electric vehicle because it will save you money over the long term because you won't be purchasing gasoline or spending money to maintain an internal combustion engine. Supporting material - I will discuss (or use a graph to demonstrate) the rising prices of gasoline in various countries of the world; and maybe a table that shows the average family's monthly fuel expense.
3 Pages(750 words)Essay
Lincoln electric case study
hin its fold a brief analysis of the factors that contributed to its success in US, including the role of its employees who stood by the company through thick and thin. It is apparent from the case that Lincoln follows a decentralized approach to management. Though certain
3 Pages(750 words)Essay
Case study of Jack Welch at General Electric
Though defined by many scholars, a more synthesized definition of corporate social responsibility regards it as a business’ dedication to impart sustainable economic growth, working with employees, their families, their
3 Pages(750 words)Essay
Electric Fan Industry Case Study
Tibrewala, owner and chief executive officer of Bhagyanagar Fan Limited, was facing some shortages in the components supply in the last peak season, decided that a short term forecast
1 Pages(250 words)Case Study
Consolidated Electric Case Study
solidate Electric Case Study (CECS), the comprehension of how inventory transactions take place would involve collection of essential information to help in relaying data through fixed terminals found in its database system (Jaber, 2009). However, in the CECS, stocking of
2 Pages(500 words)Case Study
Case study: General Electric (GE) 04257
Two prominent characters Jack Welch and Jeffrey Immelt have appeared in the case study. Both of them have different managerial styles and have been reflected in the firm’s activities. General Electric (GE) is an American company which was founded in 1892 with
12 Pages(3000 words)Essay
Let us find you another Essay on topic A Case study on Champion electric for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us