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Scientific Glass Company: Case Study - Assignment Example

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Summary
In the paper “Scientific Glass Company: Case Study” the author provides the case study on Scientific Glass, which has problems managing its inventory, from 2010. The company aims to use the background information on its previous actions to make its inventory normal…
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Scientific Glass Company: Case Study
The case study is on Scientific Glass, which has problems managing its inventory, from 2010. The company aims to use the background information on its previous actions to make its inventory normal and still remain relevant to its customer base. A new manager was hired to resolve the problem by coming up with ways of improving the flow of inventories for keeping track and ordering the inventory of the company. The manager is also tasked with establishing a flow, inventory in the manufacturing process and warehouse. The move aimed at stopping any stock decrease since any low stock would translate to failure to complete orders that they received.
The firm was unable to control its inventory management and the inventory from the warehouse; hence, it was unable to meet the customer’s demands. Expanding the warehouse network can lead to an increase in costs, errors and documentation complexities for the company.
To solve their inventory problems, the company has two alternatives:
1. To centralize the warehouse in Waltham-the move would allow the firm to pool its inventory in a bid to meet the customers’ demand. The only setback with this move is that customers’ response times will increase.
2. To continue with the existing 8 warehouses- the move will have no impact on the network if there is no stock-out.
3. Having two decentralized warehouses- the company should have another warehouse rather than just one at Waltham, say at the West. The warehouse can be supplied by Waltham.
4. The company can outsource warehouses- the move can be left for the Global Logistics, and the distribution will commence at the main warehouse to the other warehouses.
Conclusion
The above alternatives provide a solution to the company on how to manage its inventory. The choice is dependent on transportation costs, time responsiveness, average inventory level, additional benefits, and fill rates. The company should pick the choices and compare them with evaluation results and their priorities. The alternative that the company finds the most attractive and comfortable for them is the one that they should implement. Read More
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