StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Purchasing and Supply Chain Management - Essay Example

Cite this document
Summary
The case of Austin Wood Products was studied and it was found that while the company ran a profitable business it faced acute inventory management problems that require immediate attention to solve its production problems.
An Independent consultant was hired who reported on the…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
Purchasing and Supply Chain Management
Read Text Preview

Extract of sample "Purchasing and Supply Chain Management"

Download file to see previous pages

Austin Wood Products (AWP) is a successful company located at Austin Texas and specializes in manufacturing custom made wooden doors. Its current turnover is $ 25 million per annum. Maximum sales take place during February to November but the productivity is hampered by unregulated inventory system. Sadly, until the inventory is physically checked at the warehouse, production is not certain of its availability. In half the cases the material required is unavailable and has to be ordered. This effects both production and delivery.

The company expects an increase in turnover by 20% in the coming year but with such erratic and uncontrolled inventory management, the production manager is apprehensive of meeting schedules and is worried about loosing customers. It is an established fact that the Just-in-Time (JIT) based System is the answer to manufacturing operations. JIT has lead to the development of what is known as Lean Manufacturing. It offers scope for reducing inventories and introducing ways and means to improve productivity by planning optimal use of resources.

Today manufacturing faces new challenges and has been offered a variety of solutions to manage these. Most prominent among them are the Material Planning Method (MRP) and Flexible Manufacturing System (FMS) adopted by many leading solution providers like SAP. But the Theory of Constraints (TOC) is the culmination of the above and a better answer to industry needs. MRP uses fixed lead times to calculate the Bill of Material, often resulting in surplus stock of raw materials. It does not take into consideration materials available in hand.

In other words the Purchase Process is built around orders in hand. There is little or no Production Planning and Production just follows availability of raw materials to plan its own executions. The focus is on orders in hand and essentially MRP plays safe ensuring that raw material is always available to Production. But this is both wasteful and ties up huge

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Purchasing and Supply Chain Management Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Purchasing and Supply Chain Management Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1542554-purchasing-and-supply-chain-management
(Purchasing and Supply Chain Management Essay Example | Topics and Well Written Essays - 1000 Words)
Purchasing and Supply Chain Management Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1542554-purchasing-and-supply-chain-management.
“Purchasing and Supply Chain Management Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1542554-purchasing-and-supply-chain-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Purchasing and Supply Chain Management

International Purchasing and Supply-Chain Management

The transition of Wal-Mart from being a local retailer to a global retail giant has been largely driven by the unique and excellent supply chain management of the company.... Discussion The efficient supply chain management system of Wal-Mart is a major driver for the success of the company as a leading retail giant.... The company is characterized by advanced inventory management systems, aggressive pricing policies, a unique retail and supply chain distribution system and has needed very less promotion and advertising in its journey to become one of the biggest private companies in the world....
14 Pages (3500 words) Essay

Purchasing and Supply Chain Management: Heights General Hospital

This paper "Purchasing and Supply Chain Management: Heights General Hospital" discusses Heights General Hospital as a 600-bed institution, situated nearby a large town.... He was just explaining to Rose that the firm and person, whom he has finalized is the right company /person and only the said supplier will be able to supply the product as well as it's a right kind of product.... Rose silver was working as a purchasing director in the hospital whereas her previous job was as purchasing Manager....
10 Pages (2500 words) Case Study

Positive and Negative Effects of Outsourcing - Purchasing and Supply Chain Management

These technological developments play a pivotal role in designing and reshaping businesses and economies.... Outsourcing phenomenon is inherently driven by the technology and today it has grown into an… However, outsourcing impact on economy are widely debated in order to ascertain its inevitability or otherwise. In American society the debate has not lasted as yet and both sides Although, the argument that denies the inevitability of phenomenon claims it to be a major cause of unemployment in America, but the positive impact of outsourcing on the economy cannot be rejected altogether....
9 Pages (2250 words) Research Paper

Wal-Marts approach to Purchasing and Supply-Chain Management

However, besides this, its purchasing and supply-chain management have great contribution too; the actual business world William.... For instance, workers were forbidden dating colleagues in the organization's influential positions or flirt with colleagues Huff Post Business This paper shows that the presented activities, Wal-Mart are trying to employ in order to create there competitive advantage primarily using it's purchasing and supply-chain management for this reason have proved effective....
14 Pages (3500 words) Essay

Policies and Procedures Summary

Purchasing and Supply Chain Management.... Purchasing & supply chain management: Analysis, strategy, planning and Practice.... The e-supply chain (e-SCM) is an optimization of business practices and rate in every aspect of an organization.... The e-supply chain affects the purchasing process in various ways, such as enhancing timely placement and delivery of orders (Weele, 2010).... The e-supply chain also shortens the link between suppliers and buyers through the virtual interactions....
2 Pages (500 words) Essay

Purchasing and SC Management in practice

The paper, therefore, presents a critical examination of Purchasing and Supply Chain Management practices in the retail sector while also illustrating with specific examples how the practices contribute towards creating competitive advantage in the retail market.... These channels may include suppliers, intermediaries In actual practice, supply chain management ensures integration of supply as well as demand management both within and across businesses (Monczka and Trent, 2009, pg....
12 Pages (3000 words) Assignment

Public Procurement as a Social, Economic and Political Policy

Responsible Purchasing and Supply Chain Management in Kenya: A Critical Analysis of the Ethical Considerations in Procurement Management.... I must, however, mention that procurement and supply chain management has given rise to unethical practices that violate rules and the set codes of conduct.... I, however,… In developed countries, for example, government procurement for both goods and services accounts for about 15 percent of the GDP and 20 percent in the developing countries purchasing and Procurement Reply: purchasing and Procurement You have provided a precise definition of procurement and how it relates to purchasing....
1 Pages (250 words) Assignment

International Management: Britain Risks A Supply Chain Crisis

This paper focuses upon Purchasing and Supply Chain Management which is part of the routine activities of companies that are in both the production and service sectors of the economy.... Even though companies involved in international Purchasing and Supply Chain Management can be commended for the contributions they have made to the country's economy.... Regardless of the contribution they make to the economy, there have been recent calls to look into the processes and practices involved in the activities of these multinational companies as their international Purchasing and Supply Chain Management could contribute to a serious supply chain crisis for the country....
12 Pages (3000 words) Case Study
sponsored ads
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.
Contact Us