Inventory Management

Inventory Management

The case study is about Scientific Glass Inc. that is facing inventory management problem in the year 2010. In order to resolve the problem a new inventory manager has been hired to answer the following questions:

The two basic decisions addressed by the inventory management was one to improve the flow of inventory for ordering and keeping the track of the inventory and second establishing flow inventory in the warehouse and the manufacturing operations. The management took these decisions because if the stocks decreased and went below the line then it will be difficult for the ordering system to complete the orders. Inventory Management system is designed to position and control the movement of the inventory. The continuous inventory system will guard the inventory position against the demand occurring and on the other hand periodic inventory system is the method used nowadays where the cost of inventory management is analyzed and reduced cost for maintain inventory in the warehouse, therefore the responses differ for the two inventory management methods.

The biggest problem faced by the Scientific Glass Inc. was the inability of the management to control the inventory management. The firm was unable to manage the inventory in the warehouse, for manufacturing and for fulfilling the demands of the customers. The problems that were arising in 2010 were the mismanagement of inventory or the gap between the inventory available in the warehouse and the inventory available for completing the orders. The new inventory manager found that the selling and distribution networks are not providing complete information about the demand of the customers this is the reason why the company is unable to identify the number it should make available in the warehouse and make available for the production so that the increasing demand of the customers are fulfilled. The new ...