McLeod Motors LTD

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

Schenck, J., McInerney, J. 1998. Applying vendor-managed inventory to the apparel industry. Automat. I.D. News 14(6) 36-38

The company has been implementing the dual market strategy since the early 1970’s. O’Reilly currently has 4,571 stores in 44 states (Financials , 2016). O’Reilly, AutoZone, Advanced Auto Parts and Genuine Parts Company (NAPA) are the dominant competitors (O 'Reilly Automotive, Inc. , 2015). The company did not have any distinct competitive advantages during the1970’s-1990’s (O 'Reilly Automotive, Inc. , 2015). The company’s operational execution was far superior relative to their primary mom and pop shop competitors. O’Reilly has a competitive advantage in the area of operational expertise. The company has grown its store base most aggressively out of the competitors (O 'Reilly Automotive, Inc. , 2015). O’Reilly’s acquisition of CSK in 2008 doubled the corporations store count. The company has experienced margin expansion by improving the operation of CSK stores. In January 2014, Advanced Auto Parts acquired General Parts International, Inc., the parent company of CARQUEST, which gave Advance 1,248 stores company operated CARQUEST stores across the US and Canada, 1,400 independently owned CARQUEST stores, and

Freight cost was also a problem when the shipping distance expended. Both stoves and ovens were bulky and weighed well over 300 pounds each. Thus,they were very expensive to ship.Bridgewater owned a fleet of trucks which had been expanded from 5 to 10 since the addition of wood ovens to the business. Even though the fleet represented about a $2 million investment. Shipping full – load orders in compnay owned trucks was not uneconomic. But more than hald of all shipments went out in partial loads using common carriers and contract haulers. Considering traffic management.dispathing fleet costs. freignt bills. packing cost and rental charges for public warehouse space. Total shipping costs were running about 17 % of sales in 1985.

Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

W.C. Benton, J. (2010). Purchasing and Supply Chain Management (2nd ed.). New York: McGraw-Hill Irwin.

ReferencesJoansson,J2008,http://bsminfo.com/index.php?option=com_content&task=view&id=625&Itemid=147, accessed 15/05/2009Li, Y, Yu, J & Xu, L 2006, 3PLs in supply chain management, http://www.globrand.com/2006/18441.shtml, accessed 12/05/2009Rudnick, M 2008, Best Buy, Super-Regional See Major Gains in White Good, http://www.allbusiness.com/company-activities-management/sales-selling-sales/9341175-1.html, accessed 14/05/2009Weng, D 2006, 3PLs-The Breakthrough of Supply Chain Innovation, http://ww

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential

In spite of all this model disadvantages, it has some advantages as well. On one hand, the existence of inventories allows an easier response to fluctuations in demand. Thus, when for some reason, there is no replenishment the demand is still satisfied. On the other hand, comparing to the Transit Point, this system has lower transportation costs (Exhibit 6).

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

Cameron Auto Parts was founded in 1965, as consumer’s they haver three biggest car manufacturers. Cameron Auto Parts began having crisis in 2000 due two major problems: the first is about the drop in sales that were stopped at $ 48 million and in 2001 dropped to $ 18 million, and the second one is because the entry of Japanese competition to the market. Because of these losses Alex was in need for modernization, for this I borrowed $ 10 million.

Air transportation is costly, but fast and reliable. Other modes of transportation may be cheaper, but the sacrifice has to hold inventories due to delays that may occur. If the above decisions are made with careful and strategic thought as well as with concern for integration, the supply chain should be efficient and successful.

So now the issue left that if the company cannot avoid small shipments then how to minimize the cost associated to the shipment of such small shipments. As of now the company is using a freight forwarder which consolidates small shipments to fill 20-feet or 40-feet containers.

With growth of international shipping also increased domestic movements of freight. Companies has to find an optimal solution for moving their goods from factory to warehouse and from warehouse to distribution centers. Organizations has to look at many factors (objective and subjective) before they will make a rational decision and pick a suitable technique.