Helping the Company to Meet Customer-Service and Cost Objectives - Case Study Example

In order to understand the value of the suggested inventory control system, it would be necessary to refer to the concept of inventory. According to Rich, Jones & Heitger (2009), an inventory serves the following need: it helps to monitor all aspects of the product line of an organization. This means that issues such as the returns are considered equally important such as the sales or the costs involved.

At the same time, an appropriate inventory control system has the following advantage: it promotes the relationship between the organization and its suppliers and customers. This is achieved in the following ways: suppliers are continuously aware of the actual needs of the organization (Hallows 2005). As for customers, their orders are completed on time, at the level that the stock of the organization is appropriately structured (Hallows 2005). From another point of view, an effective inventory control system leads to the following advantage: the stock of the organization is appropriately structured, meaning that products of different types are always available (Al-Hakim 2007).

In the firm under examination, the last case is of particular importance due to the following reason: the existing inventory control system has the following disadvantage: not all products are continuously available. It should be noted that in the suggested inventory control system arrows that have two different directions are used for describing the exchange of information between the suppliers and the inventory. The same practice is used in regard to the Inventory and the Warehouses of the firm.

This means that both Suppliers and Warehouses have access to the firm’s inventory system, at least in regard to specific aspects of the firm’s product line, such as Orders and Returns. The suggested inventory control system addresses the above issues. For customers, the suggested inventory control system leads to the following advantages: a) products of all types are always available, b) the requests for returns are monitored by the system so that the replacement with new products is developed without delays.