Parts Emporium Case

Lastly, the company suggest to expand their current inventory through increasing production and capacity. With the increase in production rate the company can gain more consumers as a whole through supply and demand. Doing this would give the company an opportunity for more exposure and perhaps better brand recognition.

In the current situation, the order is set to every Monday which means a total number of 50 orders for the whole period, and the average Inventory calculated from the given data is 5 units. Therefore, total cost of the current situation calculation will be as follows:

The company is looking to increase profitability and find a long-term solution to the inventory problem.

Northcutt Bikes is a bike manufacturer and a service provider of bike parts to the many retail businesses that sell Northcutt bikes. Northcutt Bikes has a warehouse that is 95% utilized however they have an order fulfillment rate of less than 80%. This has caused a loss of revenue due to orders being cancelled when needed parts are not in stock. To resolve the problem, we looked at 3 alternatives including establishing pooling groups within the same geographic region, establishing a continuous review inventory management system or staying the course. Our recommendation is to establish a continuous review inventory system that will reduce unnecessary inventory, increase needed inventory and improve service levels.

This report presents an analysis of The Body Shop PLC’s pro forma financials from 2002-2004 and insights into financial requirements for the company as it moves forward with their new strategies for achieving operational efficiencies and reclaim its brand image as a top manufacturer-retailer in the beauty and personal care industry.

The Scientific Glass, Inc (SG) is a midsized company in the specialized glassware industry producing for and supplying to research facilities and specialized laboratories in its market regions; North America, Europe, Asia Pacific and rest of the world. The company is facing an increase in inventory level balances with too much capital tied up in inventory preventing it from using its capital towards international expansion. Evaluating other options on the basis of effects of SG's previous attempts at

The third problem is the excess of inventory in each division. Advantages of this preparation can be caused either by the decision of the production or marketing, the bad quality of goods and others. In addition, evaluation performance using the ROI as a measure is also not right. Moreover, investments or assets are only measured at the beginning of the year until the excess preparation is not questioned or observed

Parts Emporium, Inc. is a wholesale distributor of automobile parts formed by two disenchanted auto mechanics, Dan Block and Ed Spriggs. Originally located in Block’s garage, the firm showed slow but steady growth for 7 years before it relocated to an old, abandoned meat-packing warehouse on Chicago’s South Side. With increased space for inventory storage, the company was able to begin offering an expanded line of auto parts. Fifteen years later, Parts Emporium was the largest independent distributor of auto parts in the north central region.

The factors for the loss of revenue are: 1) Having an outdated application/ database server, 2) Having outdated sales and inventory management software, and 3) Not implementing e-commerce as a business model. We depend on the server to maintaining accurate data, in terms of inventory and sales data. Ziggy’s Suit shop cannot maintain accurate sales, and customer transactions. The problems seem to reflect the outdated sales management software being used at the time. The Ziggy’s Suit Department is having additional problems with maintaining accurate designer inventory data this includes; quantity of products hand, amount products sold, amount of inventory on order, price at point of sale, and the expansion of new designer inventory.

While operating a manufacturing company one can expect to encounter different types of methods of inventory costing. The four methods I will be discussing are, first in first out, last in first out, average cost methods, and specific identification method. I will also be discussing the pro and cons of utilizing each method.

3. SciTronics apparently needed $29 mil of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $74 mil. It therefor had an inventory turnover of 2.55 times. This represented an improvement from 2.05 times in 2005. (Inv. Turnover2008 = 74 mil/29 mil and Inv. Turnover2005 = 43 mil/21 mil)

Sales: sales volume is based on successful price competition by control of operating expenses (no sales staff employed) and quantity purchases of materials at substantial discounts. One might expect that this would be correlated to a strategy of quick sales with a focus on quantity rather than quality. However, the circulation speed of the inventory is rather slow (2009: 8,350,000/(1,280,000 + 1,670,000/2)= 5,66. 2010: 9,850,000/ (1,670,000 + 2,280,000/2)= 4,99. 2011: 13,280,000/(2,280,000 + 2,920,000/2)= 5,11). Also, the inventory days are higher

An inventory management system, inventory control and inventory accuracy are paramount to a mass production manufacturing facility, especially when multiple part types and multiple product types are being produced. Raw component inventory can account for millions of dollars of an organizations’ cash, which is not contributing to profitability until converted to a product and sold. Therefore, it is essential for an organization to have an inventory management system and an inventory control process to account for the value associated with each part and ultimately to return value to the operation.

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

Hopkins Warehousing and Distribution Company is a public firm that offers manufacturers in many states in the United States with enough space to keep their products so as to reduce other costs, storage and distribution costs. Hopkins Company’s main challenge is its inability to obtain large loans to facilitate its expansion; this is because it does not have enough assets to secure large loans, (Galin, 1994). There are other competitors in the market they do not affect the profitability of the firm as there are many manufacturers who want the services. The company operates in a technocratic environment where most of its customers are learned and well acquainted with the market.