Inventory Management and Control

Introduction

This particular research work would focus on Cost-Mart Warehouse, where Amy Gordon was selected as the new record supervision administrator for the provincial Cost-Mart department. In this departmental store, she was appointed as the part-time worker and later she was appointed in a higher designation. This particular research work would shed light on recognizing the issues in the organization carefully. Apart from that, on behalf of Amy, an effective data-base would be prepared, which would assist Amy to win over the present situation. Along with that, the research work would try to develop a suitable model that would enable the warehouse to perform well in the long-run in the present scenario.

Dekker et al. (2013) have stated that source of prosperity is calculated by the quantity of goods and serried vices produced. Therefore, it can be stated that a production purpose is required to convert the available resources into some helpful commodities as well as services. It can be stated that production takes place in all the shapes of transformation like extracting minerals from the earth, farming, bumbling, fishing and utilizing these useful assets to produce constructive goods (Chen & Simchi-Levi, 2012). However, focusing on these factors carefully, the research work would try to analyze several aspects of CostMart warehouse.

Main Discussion

Identifying the Problems

From the case study, it can be found that Amy had protested about the issues she had with the storehouse refilling supplies for her areas of accountability. It has been seen that Amy found that the issue was not hers and this insisted her to go in depth of the situation. Apart from that, Amy found out that the burglary and other forms of thrashing were one of the steady problems in the retail shops. Thus, to deal with the situation carefully, she coached all her clerks to mark count up record in their particular parts of accountability, whenever, there was a “pause” in the stock up interchange. Apart from that, Amy found in CostMart that some of the products were faddish in nature and thus it was required to deliver the products in short time. Beside these faddish products, there were some seasonal products as well and packing is required to be likewise. From the case study, it can be found that Amy was highly efficient in tactfully managing the records in her specified area and thus she was vocal enough to explain the issues to the higher management (Resnick, 2013).

However, it seemed that almost everything she planned for replacement was a severe problem. The company was gradually losing its market reputation, as some items were late and sometimes the time duration was six weeks. Moreover, Amy found that some items were reloaded in quantities that was either far larger or smaller that was ordered. However, being in the operational procedure as well as efficient, Amy found that almost every ware house delivery was a random event to the organization instead of accurate filling of the orders. Along with this issue, Amy found out that customers in her operating area were complaining hugely, as the stock outs of different products became a prototype (Schmitt & Snyder, 2012).

Moreover, Amy faced some severe incidents like one customer physically dragged her out of the store and showed the signboard of CostMart ware house, where it was mentioned that “CostMart- Where Customer service is in charge”. That customer said that it would be best to sue Amy for false advertising and misguiding the customers. Another issue she addressed that in most of the cases, the ordered quantity was twice or thrice the amount shed ordered and this is disappointing undoubtedly. With the progression of time, Amy found that some not-so-delicate resentment from the general supervisor of the ware house, Henry Anderson. The higher authority of this ware house distributed the responsibility of Anderson and assigned Amy at that position. Therefore, it is easily understood that Hand was thoroughly non-cooperating with Amy and this no doubt one of the major issues faced by Amy. However, it is required to mention that Amy found that the major issue was regarding the record and the amount ordered. Apart from that the staffs were not ready enough to split the boxes and thus there were some issues related to the ordered amount to CostMart Warehouse (Subramanian, Rawlings & Maravelias, 2014).

Building Data-Base to Win over the Present Situation

In order to construct a data-base case to encourage her superior and start to “win over” Hank, Amy desires to gather data about the issues that employees have to face at the CostMart Warehouse. At the first stage, the Amy has to converse to Jane Dawson. Jane is accountable for meting out order from the shop. It would help Amy to gather data related processing orders from the store. After interviewing Jane, Amy comes to know that Jane always try to process orders prior to the deadline however, she was constantly having problems. Sometimes Jane was told that the warehouse could not find the record. Often the capacity of order was fewer than full box and they could not divide the box so they were transporting the occupied box. These issues are combining with factual record scarcities from supplier-missed consignments. All these issues put the company behind the deadline and they are never capable to ship what they are invented to. It has been found that the inventory records of the company were less than 50% accurate (Mitra, 2012).

In the next stage Amy has to talk to experienced workers such as Curl Carson and Crista Chavez. Talking with them would help Amy to find out the faults of Jane Dawson who responsible to process order from store. Curl Carson stated that Jane never gives them some sophisticated caution about what she needs to propel for the subsequently shipments. Giving them warning can help them to de better job to find material and staining it. Curl Carson mentioned that Jane did not understand that it is very impractical to break boxes part in order to ship just the quantity she wanted. In addition, the employees did not have good want to package the partial box. In addition, Curl Carson mentioned that opening boxes increased the chance of damaging the remaining goods (Chan & Prakash, 2012).

After that, it can be found from the case study that Amy forced her to talk to Crista Chavez, who was working in the purchasing subdivision and was solely accountable for storehouse regulating. One of the main reasons behind going to Crista was that Crista was highly knowledgeable, competent and enthusiastic to do high-quality work for the organization. From Crista, Amy found that that the company has good suppliers, but the unfortunate fact is that these employees are not the miracle employees. Moreover, Crista added that they actually do not have the idea what they want and record books are nothing but joke to them. Therefore, maximum time of a day went to change the order dates, order amounts or the speeding up orders in order to plug the deficiency. For getting rid of this situation, Crista requested Hank several times and Hank responded her that it was always her responsibility to bring all the suppliers in line (Uthayakumar & Priyan, 2013).

Developing the Model that would Enable the Ware-House to Work Proper

In order to deal with the addressed issue in the organization, Amy at first is required to look at the inventory system, as this is expected the assist CostMart Ware house to keep their records properly working. Ignaciuk and Bartoszewicz (2012) have stated that business records are highly significant and they assist the organization’s Inland Revenue Department (IRD). Therefore, it can be opined that there are several reasons behind keeping the accurate business records:

• It can be mentioned that the accurate records allow one to have a better control of the business by assisting with the financial planning as well as the decision making procedure (Ozguven & Ozbay, 2013)
• Through a useful inventory, an organization can portray a more professional image that makes it easier to deal with the bank
• Panigrahi (2013) has mentioned in his research paper that an appropriate record enables a company to file a proper profits tax return
• The costs to an organization of an Inland Revenue Department audit are reduced if all the required records are readily available
• In this case, compliance costs are less
• Apart from that, it can be seen that accurate inventory system allows an organization to have an overall control of the business
• Yu et al. (2013) have stated that the losses and theft in the business might be detected through a proper inventory system

The inventory that Amy must focus on must include invoices, receipts, banking records, cash register tapes and cheque butts. Panigrahi (2013) has stated that the essence of good record keeping is good book keeping. Efficient record keeping would save time as well as money in the long run. Here it is required to mention some efficient points of record keeping.

• Amy must train the staffs in such a way that they consider boom keeping as a part of the regular routine.
• Once Amy would establish record keeping as a part of the regular routine, then she can found out that the work would become more thorough (Ali et al., 2013)
• Amy found that the inventory systems were not up to the date and thus the organization were facing several issues. Therefore, Amy must focus on the fact that the inventory is always up to date
• Moreover, Amy must arrange the inventory in an organized manner and this would be easy for the organization to fix up the issues (Saberi, Nookabadi & Hejazi, 2012)
• Amy has successfully gained her university degree and has been promoted to higher designation in CostMart because of her capabilities to manage things tactfully. Therefore, it is recommended that Amy must look for the ways to enhance the inventory
• Earlier the company used to suffer from the last minute hurry of the record and it is suggested that the new inventory must not be left for the last minute
• Amy must upgrade the company’s computer system and set up a secured electronic backup system in order to make sure that the records are kept safely and are backed up on a daily basis (Coelho & Laporte, 2014)

Developing the Time-Phased Plan to Move from the Present Circumstances

In this part, focus would be shed on developing a proper time phased plan to shift from the present state of affairs towards a better situation.

Determining the requirements	·         Volume of the goods ·         Breaking bulk location ·         To upgrade the speed of response ·         To carefully protect and account for inventor (Coelho & Laporte, 2014)
Determining storage requirements	·         Existing building ·         Security ·         Access ·         Services ·         Access to labor ·         Purpose of ware house (Coelho & Laporte, 2014)
Planning for the developed system	2 weeks to 3 weeks
Focusing on consistency	1 week to 3 weeks
Focusing on communication procedure	1 week to 2 weeks
Providing necessary training	1 week to 3 weeks
Allocate right resources to the right place	2 weeks to 3 weeks
Modify the existing system	2 weeks to 3 weeks
Embracing the updated technology	1 week to 3 weeks
Delegation	1 week to 3 weeks
Distributing responsibility	2 weeks to 3 weeks
Reviewing the existing system	1 week to 2 weeks

Conclusion

After going through the entire case study, it can be seen that Amy was promoted as the new inventory management supervisor from being an in-charge of a local CostMart ware house. This is because of the fact that Amy was capable enough to manage the inventory management system and very easily she pointed out the issues of this firm. However, this research work has tried to provide some possible recommendations to Amy to upgrade the existing system and it is expected that these recommendations would assist Amy to deal with the addressed situation carefully.

References

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