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Consolidated Electric - Case Study Example

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It means the most critical inventory objects would include fixed assets, capital equipment, consumables, and merchandise among others. In the scenario of…
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Consolidated Electric Case Study
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Download file to see previous pages... Contrastingly, for the other 20,000 separate line items, the company will buy discount minimums that match the various inventory sizes.
In the warehouses managed by Consolidated Electric, for instance, Cedar Rapids, Des Moines, Davenport, and Sioux City should ensure the fixed ratios are part of the wholesaler concept. In the same view, actual rations should be calculated using the clerk posts transactions because determining on-hand inventory balance will result to $1 million of pre-tax profits. Integration of the vendor-managed inventory (VMI) systems is equally part of increasing customer stocks as the company expands on operations and warehouse layout (Ravindran, 2007). Calculation of quantities and reorder points, thus, are ordered in terms of low-cost items in order to control profitability that are targets for earn-turn rations. Product lines should equally reflect what Joe Henry called a balance between constant values and supplies in the four warehouses as seen in the diagram below:
The above inventory control system above will enable the company to meet customer-service and cost objectives in various ways worth noting. First, entering of electric data interchange is part of refining database connectivity because it generates earn-turn ratios that help wholesalers in different parts of the country. It means when the Cardex system is infused in the Consolidated Electric’s case, inventory formulas will help in the sale of product line items that ensure translations happen smoothly. Second, there is also the quantification of assets and label inventory using the QR Code as noted in the second diagram to keep the total count of stock (Jaber, 2009). Warehouse operations also deserve automations and controls that are efficient within the system to assist in the calculation of electrical equipment and goods for enhancing customer ...Download file to see next pagesRead More
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