Scientific Glass, Inc: Inventory Management

The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).

By exposing some of the weaknesses in Wegmans current systems we will be able to determine what changes they could make in order to improve their efficiency. Inventory management is currently the biggest struggle facing the company. Implementing strategies to help improve their techniques in inventory management, such as a stronger point of sales system, greater capacity planning, and application of the ABC approach could prove very beneficial to the overall operational success of the company. Throughout this paper we will highlight some of the issues within Wegman’s current operational systems, and provide strategies that could help improve their techniques and strengthen the organization as a

The operations management problem that our group chosen to discuss about occurs at a small, family owned restaurant business called Good Greek Grill. Known best for their tasty greek food, the company’s primary problem is inventory management; trying to determine the order quantities and the method of lot sizing and when to order so the company doesn’t waste items with short life such as the dairy products that uses like yogurt and milk. In the past the store has had been throwing away large quantities of dairy products due to lack of forecasting the demand for dairy products as well as weak inventory planning methods from unqualified employees. As a result, Good Greek Grill (G3) asked our group to help them solve the problem since after getting a SOM class we are able to determine methods towards solutions of Operational Management problems. The solution can be found by getting to know what is the current reorder point and order quantity by using the EOQ (Economic Order Quantity) inventory model . Cost cutting is essential as the store doesn 't get enough customers that are interested in the dessert and coffee products that are offered in store. Yogurt is used in our dessert items which are the strawberry greek yogurt and the black

General operations will be handled by different employees in the production and transport line. The production managers will handle the huge number of production to cater for the new foreign exports. The transport and logistics department will then oversee timely and efficient transportation of product from the company’s plants to the distributors in foreign target countries. These people will also oversee the stipulation of the minimum-order quantity per shipment

The selected business functions that outsource to a third party has become a common practice in the corporate world. The function of logistics is often to outsourced and providing logistics service companies have evolved into providing a vast range of logistics functions including inventory management, transportation services and warehousing services. The companies which provides logistics services on contract to other companies are known as Third Party Logistics Providers ( 3PLs).

Once the good are ready for distribution, then the transportation company (Gerimis Baiduri) which is the 3rd party organisation, pick up the goods and ensure they are transported to the APGL warehouse in Singapore in the right temperature and time

For further details please contact: Laura Goddard lgoddard@eyefortransport.com US Toll Free: 1 800 814 3459 ext 321 Rest of World: +44 (0) 207 375 7231

Let me start off by introducing inventory management. Its part of Supply Chain Management that contain systems and processes of maintaining the appropriate level of stock in a warehouse. It is important not only maintaining the inventory accuracy and level but also required to achieve customer satisfaction level and minimize the inventory carrying cost will not be easy task. Our main objective is to highlight to everyone,

Third party logistics is a provider that gives companies the ability to outsource their logistics services. Logistics services that may include anything throughout an organization that involves management of the way resources are moved to areas where they are required or needed. Some would say the term, third party logistics, come from the military. In the business world, third party logistics con somewhat have a broader meaning. Meaning that it can be associated with service contracts that involve shipping or storing of items. Third party logistics provide services that may be a single service such as warehouse storage or transportation related, but it can also provide a system-wide bundle of services that have the capability of managing a company’s entire supply chain. Photo provided by Robinson (2013).

Third party logistics industry (3PL) also referred to as logistic outsourcing has become a thriving sector within the supply chain and logistics sector. As the world of logistics and supply chain management has grown so has the need for third party logistics providers to deliver comprehensive services to companies that are constantly looking for ways to stay competitive and innovative in order to improve processes, increase profits, and lower cost throughout their organization. Third party logistics providers have come to play a major role in helping companies meet those goals. As the demand for third party logistics providers increases it becomes even more important that they are able to both stay competitive among other third party logistic providers and exceed at meeting the needs of companies. The supply chain world is ever changing especially when it comes to technology which means that third party logistics providers have to be able to deliver the best and latest in technology to companies as well. As there is never a one fit all solution in the supply chain industry third party logistics providers have to be able to meet the organizational demand of their customers supply chain structure however complex and challenging it may be.

Blanchard (2006) defined third party logistics as, “A single entity that coordinates all the logistics requirements for a given company/agency.” Today’s world business environment has become so competitive that companies in order to be successful in the market must deal with different resources for satisfying their customer need. In the past decade or so the competitive global market has made a big influence in the growing for external business. Third party logistics providers are more and more employing external companies for inventory management, transportation, warehousing, and other value added activities for customer services. Third party logistics ultimate goal is to provide a competitive advantage to the organization for which they are serving. According to Cardinal Logistics (2012), “Third-Party Logistics is an effective way to reduce operational costs, and allow a company to focus on their core competencies.

The management level can then decide on the inventory management criterion. The company can work on ordering the materials that are in shortage or mange the priorities according to the seasons and the products the customer desire to purchase.

Inventory management can be difficult in today's economy where sales can fluctuate and seasonal sales come and go. Inventory management can present barriers to success with unavailable or inaccurate data, inability to integrate total cost measures, inability to measure product enhancements or new products, no agreement on when to measure or record, and not enough organizational commitment (Smeltzer, 2003). Inventory technology models can present problems with Economic Order Quantity (EOQ) calculations, inaccurate inputs, and conflict with corporate strategies and goals (Piasecki, 2012). Without proper management, the organization could end up with excessive underselling stock and shortages of selling stock.

Inventory is important to the supply chain, yet it is not universally well understood. It is considered as an economic asset to a non-income-producing use of capital funds. It is characterized, both positively and negatively in the aforesaid sentence. Only when considered in light of all quality, client service and economic factors—from the viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory become clear. Effective inventory management is essential to supply chain competitiveness.

They include such costs as obsolescence (outdates), deterioration, storage, inventory taxes, and insurance. The problem with high carrying costs is the lost opportunity to use the capital invested in inventory elsewhere. -The opportunity cost of any investment is equal to the amount that could have been made by investing in the next-best alternative of comparable risk. Carrying costs are usually expressed as a percentage of average inventory value. Most sources estimate annual carrying costs to be between 20% and 30%. So, for a pharmacy with an inventory valued at SR 225,000 inventory-carrying costs would amount to SR 45,000 to 67,500 per year. -Procurement costs (ordering costs) are costs associated with actually ordering and receiving goods. They include the costs of placing the order, receiving goods, and processing payment.