Your SlideShare is downloading. ×
Production and operations management
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Production and operations management

104
views

Published on

Production and operations management and its detailed analysis on various factors

Production and operations management and its detailed analysis on various factors

Published in: Business, Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
104
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Submitted by: Ranjeet Kumar Singh(11BM60068)
  • 2. Issues  Increasing trends in the balance of Inventory level  Tied up money in the inventory, leads to lack of expansion  Increase of debt to capital ratio more than 40% created lack of funding expansion to international market  Extra cost on the inventory creates an obstacles in the growth of the company.
  • 3. Analysis of the Issues  Company’s fill rate 0f 99% against market fill rate of 92%  Excess inventory than necessary  Exceeding the upper limit of the day’s of supply(60 days)  Increased transshipment cost  Increase of inventory level leads to increase of debt to capital ratio
  • 4. Alternative options for Issues  Number of warehouses and their structures can be changed --- Continuing with 8 warehouses --- One central warehouses --- Two centralized warehouses --- Outsourcing the warehousing functions  Related policies can be changed --- Periodic Audit --- Increasing reporting activity levels --- Stopping trunk stock activities --- Different policies at different warehouses.
  • 5. Evaluation of Alternative Options   Transportation Cost: Calculated for Griffin Erlenmeyer, demand for next year at 20% increase in sales. Option1: 8 warehouses and making no changes Option2: 1 warehouse and shipments are calculated for the rates of Winged fleet Option3: 2 centralized warehouses, Waltham and Phoenix will equally supply east and west region respectively Option4: Warehousing functions are outsourced, assuming all the 5 regions of Global Logistics have equal demand Cost(in $) related to each options are: Fill rate: Optimum fill rates for alternatives:
  • 6. ……contd.  Average Inventory level: Weighted average biweekly levels are:  Time Responsiveness: working with GL has the advantage of differentiating customer/orders  Additional Costs and Benefits: Investment shared equally among all the warehouses, Operating costs will be compared with the inventory level directly , Constant cost of sales force
  • 7. Conclusion  Company should choose the alternatives and compare the results accordingly.  Inventory level and transportation cost are areas of conflicts  Get the most cost effective option to get target debt capital ratio.  Maintaining and improving higher customer satisfaction level.
  • 8. Thank you