...chain management which brings customer satisfaction and profitability. Many retailers especially supermarkets and grocery stores use different strategies in order to achieve an effective supply chain management. Faced with predictable variability, a company’s goal is to respond in a manner that balances supply with demand to maximize profitability (Chopra & Meindl, 2013: 247). Inventory management is the activity of planning and controlling accumulation of inventory which occurs because of local mismatches between supplier and demand (Slack, et al. 2012). Inventory management is one of the building blocks of total supply management and a good indicator of the effectiveness of supply chain management (Basu&Wright, 2008) Stock rotation is an innovative inventory management practice, commonly used in retail, especially in food stores such supermarkets and groceries, of moving products with an earlier sell-by date to the front of a shelf and of moving products with a later sell-by date to the back. (Gustafsson et al. 2006). In this assignment, it is going to be analysed how 7-Eleven achieves the performance objectives; cost, dependability, flexibility, speed and quality via innovative inventory management and stock rotation and further compare this using the importance-performance matrix. The author studied industry journals, including a case study of 7-Eleven’s, and emphasised the impact of stock rotation and inventory management on supply chain management. ...
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...MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________ ________ Long Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance Short Term Sources of Finance - Finance required to meet day-to-day Business requirements - Also, known as Working Capital Finance 2. Working Capital Management: Working Capital (WC) ____________________________________________________________ ____________________________ Basics regarding WC Meaning of WC Working Capital Concept Factors Affecting WC Meaning of WC Management Importance of WC Management Classification/Type of WC A On the Basis of Concept (i) (ii) Gross Working Capital Net Working Capital (Positive & Negative Working Capital) Methods of estimating WC Conventional Method Operating Cycle Method Cash Cost Method Balance Sheet Method B On the Basis of Periodicity (i) (ii) Fixed / Permanent Working Capital (Regular & Reserve Margin/ Cushion WC) Variable Working Capital (Seasonal & Special Working Capital) Parag Nalin Doshi 1/12/2009 www.CAalley.com Meaning of Working Capital: - Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash requirements of its operations - Working...
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...Inventory Management 30 NARRAGANSETT YACHT CORPORATION Narragansett Yacht manufactures fiberglass sailboats which range from 18-foot day sailors to 50foot ocean racing yachts. The company was founded in Newport, Rhode Island, a hotbed of sailing activity, but high labor costs forced it to move its manufacturing operations to Corpus Christi, Texas, in 1990. The boat-building industry is very competitive and highly labor intensive, and profitability depends on getting the maximum efficiency out of the labor force. Narragansett has managed to keep its workforce nonunionized; this means that all of its employees can be shifted from task to task, and Narragansett can thus maintain flexibility. However, the price for this freedom has been a relatively high basic wage rate and a no-layoff policy. The no-layoff policy, in turn, makes it essential that the workforce is kept productively employed; this means that Narragansett simply must not run out of the various parts that go into the assembly of a boat. Therefore, a good inventory management system, which must track a large and varied inventory of parts ranging from inboard diesel engines and masts costing thousands of dollars each to screws and rivets costing only pennies each, is essential. Sailboats are built in sequential steps. First, the major fiberglass components are laid up in molds. To begin, each mold is cleaned and inspected, and if no damage is found, the mold is waxed with an agent which facilitates lift-out...
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...lessen human effort in their day to day activities, by reducing both human labour and time in solving their problems which are both numerous / unlimited. The introduction of the magical machine has led to the further growth of agricultural products which is of great importance to human as it provides a means of continuous existence and livelihood to man. The technological know-how and scientific research reveals that a lot of work can be carried out by the computer in agriculture and help in the growth (Tadelle et al., 2000). It therefore deems imperative that computers should also be employed and utilized in poultry farm, being an area of agriculture, is inevitably essential and of great importance to man. Poultry produce is being consumed on a daily basis in every part of the world as they are been used both domestically and industrially (Oladeebo and Ambe-Lamidi 2007). The traditional way or method of managing poultry farms has brought about gross mismanagement of farms. This research centres how computer system can be useful in a large scale poultry farm, keeping of general stock of the birds, the health status and finally the financial accountability of the farm. The importance of Poultry Farm Inventory Management System that can effectively and efficiently keep records of day to day activities of the poultry farm, such as; taking records of the total number of birds, total number of bird’s produce (chicks, eggs, waste), feed consumed, general income and expenditure of the...
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...Inventory management is a core operations management activity. Good inventory management is important for the successful operation of most businesses and their supply chain. Operations, marketing, and finance have interests in good inventory management. Poor inventory management hampers operations, diminishes customer satisfaction, and increases operating costs (Stevenson, 2009, pg. 549). Inventory is a stock or store of goods. Too many companies have unsatisfactory inventory management, which sometimes is a sign that management does not recognize the importance of inventories. More often than not, though the recognition is there. What is lacking is an understanding of what needs to be done and how to do it (Stevenson, 2009, pg. 549). Harvey Industries current financial and inventory distress includes: no accountability for managing inventory issues, poor inventory record keeping of on-hand and out of stock supplies and inventory that has been used. Recommendations that would help Harvey Industries with better inventory control: First, make sure to set up an inventory control team. Their task should include inventory record maintenance that covers the stock room and assembly area and a regular inventory count. Secondly, use the A-B-C approach. In which classifies inventory items according to some measure of importance, usually annual dollar value, and then allocates control efforts accordingly. Harvey can use three classes of items they used: A (very...
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...MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________________ Long Term Sources of Finance Short Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance - Finance required to meet day-to-day Business requirements - Also, known as Working Capital Finance 2. Working Capital Management: Working Capital (WC) ________________________________________________________________________________________ Basics regarding WC - Meaning of WC Working Capital Concept Factors Affecting WC Meaning of WC Management Importance of WC Management Classification/Type of WC A On the Basis of Concept (i) (ii) Gross Working Capital Net Working Capital (Positive & Negative Working Capital) Methods of estimating WC - Conventional Method Operating Cycle Method Cash Cost Method Balance Sheet Method B On the Basis of Periodicity (i) Fixed / Permanent Working Capital (Regular & Reserve Margin/ Cushion WC) (ii) Variable Working Capital (Seasonal & Special Working Capital) Parag Nalin Doshi 1/12/2009 www.CAalley.com Meaning of Working Capital: - Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash...
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...Ethics Awareness Inventory . Ethics Awareness Inventory Ethics awareness inventory is an opportunity for individuals to learn about themselves as well as how others approach ethical decision making (The Williams Institute for Ethics and Management, 2012). “Ethics awareness inventory is designed to assist individuals with achieving specific objectives enabling an individual to understand and care about what is right or good, compare, and decide alternatives, form opinions about actions morally appropriate to take, and acquire the skills to justify decisions or ethical grounds” (The Williams Institute for Ethics and Management, 2012, p. 1). Understanding the importance of an individual’s own personal ethical perspective is an important area that individuals should be aware of and understand as well, the relationship between personal and professional ethics are also areas important to be aware of and understand. The ethics awareness inventory consists of four categories of ethical thoughts used to determine the profile of an individual, which should reflect the individual’s beliefs. After taking the multiple question inventories it is apparent that the ethical profile most closely aligned to is (O) obligation, and the ethical profile least closely aligned is (E) equity (The Williams Institute for Ethics and Management, 2012). The ethics perspective of (O) obligation, “individuals who most closely aligned with obligation tend to base his or her ethical perspectives on an...
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...Business History Ýn The United States At The End Of The Twentieth Century The History of Business history Business history in the united states at the end of the twentieth century and the beginning of the twenty-first is simultaneously thriving and strungling with itsidentity.There are clear signs of vigor, including a rising membership in the major professional organization in the field, BHC (Business History Conference). The organization recently launched a new quarterly professional journals; • Enterprise & Society • Economic and Business Historical Society. There are also some signs of stress, including a growing debate among business historians over the future direction of the field. Business history has grown tremendously in recent years, not only in terms of the number of scholar interested in the subject but also in academic structure Alfred D. Chandler has dominated the field over the past several decades.But, business history, of course, is more than Chandler. But thought business historians are doing exciting new work, there is no consensus about which way the field should be headed in the twenty-first century. The Economic History Association (EHA) lists 1,242 members, over twice the membership of the BHC. To examine the state of business history in the United States at the end of the twentieth century, we must get down to basics and ask a few questions about business history.These are; • Where have we come from? • What are its practitioners...
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...Impact of Inventory management on the profitability of Square Pharmaceuticals Ltd. 1. Introduction: Inventory is one of the factors that can control to improve business profitability. The way source and manage inventory can impact the different profit levels of income statement. Ignorance of how to use inventory advantage prevents you from maximizing operational efficiency. 2.1. Overview of the Company: SQUARE today is a name not only known in the Pharmaceutical world, it is today a synonym of quality- be it consumer product, toiletries, health products, textiles, agro vet products, information technology and few more. All these were possible due to his innovative ideas, tireless efforts, perseverance and dedication with self confidence which contributed to his successful achievements. Now the name “SQUARE’’ inspires trust. Under his dynamic leadership, SQUARE is set to continue its progress globally. Square Pharmaceuticals Ltd. is a leading edge pharmaceutical company and is a member of the SQUARE Group, the largest private sector industrial conglomerate in Bangladesh. Square Pharmaceuticals is also the largest exporter of pharmaceuticals from Bangladesh, spreading its presence in many developing and developed countries across the globe. Square Pharmaceuticals has successfully made its footmark in the global market. This milestone event has widened the responsibility, accountability and transparency of the company beyond geographical border. 2.2. Objective...
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...OPERATIONS MANAGEMENT Courses with numerical and conceptual focus Course Planner 16031::Gurpreet Kaur Lectures 3.0 Tutorials Practicals Credits 1.0 0.0 4.0 TextBooks Sr No T-1 Title Operations Management Reference Books Sr No R-1 R-2 Other Reading Sr No OR-1 OR-2 OR-3 OR-4 OR-5 OR-6 OR-7 OR-8 OR-9 OR-10 OR-11 OR-12 Journals articles as Compulsary reading (specific articles, complete reference) The four things that a service Business must get right HBR Article , Bang & Olufsen Design Driven Innovation : HBR , Smart Product Design : HBR , Mishina, Kazuhiro. Toyota Motor Manufacturing, U.S.A., Inc. HBS Case No. 9-693-019. Harvard Business School Publishing, Boston, 1995. , Hammond, Janice H. Barilla SpA (A). HBS Case No. 9-694-046. Harvard Business School Publishing, Boston, 1994. , Latour, Almar. Nokia Handles Supply Shock with Aplomb as Ericsson of Sweden Gets Burned. The Wall Street Journal. Dow Jones & Company, Inc., 2001. , National Cranberry Cooperative HBS #688122. From Case Map , John Crane UK Ltd Case : The CAD CAM Link . HBS #691021,24p , To Move or not to Move .Case of Cathay Pacific Airways . University of Hong Kong HBS #HKU003,22p , Note on Quality: The Views of Deming, Juran, and Crosby HBS .687011 , Process Control at Polaroid , HBS, #693047 , LL Bean Item Forecasting and Inventory Management HBS, #893003, 5p , Johson Control Automotive Systems , HBS,#69308623p , Title Operations Management Concepts, Techniques & Applications Operations Management Author Evans...
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...Materials Management / 1 CHAPTER I Materials Management Introduction Materials Management is simply the process by which an organization is supplied with the goods and services that it needs to achieve its objectives of buying, storage and movement of materials. Materials Management is related to planning, procuring, storing and providing the appropriate material of right quality, right quantity at right place in right time so as to co-ordinate and schedule the production activity in an integrative way for an industrial undertaking. Most industries buy materials, transport them in to the plant, change the materials in to parts, assemble parts in to finished products, sell and transport the product to the customer. All these activities of purchase of materials, flow of materials, manufacture them in to the product, supply and sell the product at the market requires various types of materials to manage and control their storage, flow and supply at various places. It is only possible by efficient materials management. The materials requirements planning, purchasing, inventory planning, storage, inventory control, materials supply, transportation and materials handling are the activities of materials management. They will be discussed in details in various chapters to follow. About 20-25 years ago, there was no cut-throat competition in the market to sell the various consumer items manufactured by different industrial undertakings and the availability of materials to manufacture...
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...Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of trading partners (Power, 2005). Modern businesses are dynamic in nature and to stay competitive (organizations) need to optimize their business processes by understanding and reacting to the rapid changes in their environment' (Banavar, Black, Caceres, Ebling, et al, 2005). Dialysis, a specialized field in the healthcare industry, is a major business entity with penchant for a rapidly changing environment. Dialysis is a medical treatment for individuals with limited or no kidney function and without this specialized therapy these unfortunate individuals would not survive. In dialysis, supply chain management is crucial from all aspects in providing comprehensive and adequate patient care. The constant changing needs of patients and the organizational...
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...1. Describe the importance of inventory management as it relates to the Farmers Restaurant. In addition to inventory management being important to Farmers Restaurant, it is important to business in general. Since Farmers Restaurant is a full-service restaurant, it must have effective management with its inventories in order to properly serve its customers. It is important for that to be the case so that there will be desirable customer satisfaction and customer return. In the case that customers visit the Farmers Restaurant and are unable to receive the food they want due to a stock out, they may be dissatisfied and will likely not return to Farmers Restaurant. Besides customer satisfaction, total food costs are important to business also. In the restaurant industry, if too much of a product is ordered and not used, it could result in product waste due to the items expiring. Of course, having too much of a product would result in an increase in total food costs, which is opposed to the goal of any business to minimize costs. Overstocking products can also negatively affect Farmers Restaurant and other businesses since by having more products on-hand than needed, Farmers Restaurant is tying up funds that might be more productive elsewhere. Farmers Restaurant has experienced both shortages and wasteful surpluses, so in conclusion, it is essential that Farmers Restaurant try to manage inventory levels successfully when considering these potential/existing problems (Lubbers &...
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...INTRODUCTION 1.1 Background Successful inventory management involves crating a purchasing plan that will ensure that items are available when they are needed but that neither too much nor too little is purchased and keeping track of existing inventory and its use. Two common inventory management strategies are the just -in-time method, where companies plan to receive items as they are need rather than maintaining high inventory levels, and materials requirement planning, which schedules material deliveries based on sales forecasts. An inventory valuation allows a company to provide a monetary value for items that make up their inventory. Inventories are usually the largest current asset of a business, and proper measurement of them is necessary to assure accurate financial statements. If inventory is not properly measured, expenses and revenues cannot be properly matched and a company could make poor business decisions. The two most widely used inventory accounting systems are the periodic and the perpetual. * Perpetual: The perpetual inventory system requires accounting records to show the amount of inventory on hand at all times. It maintains a separate account in the subsidiary ledger for each good in stock, and the account is updated each time a quantity is added or taken out. The perpetual system records revenue each time a sale is made. Determining the cost of goods sold requires taking inventory. The most commonly used inventory valuation methods under a periodic system...
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...today’s economy. There are many reasons why minimizing working capital is important. With its importance, though, there are many challenges. The most important reason to minimize working capital is to maximize shareholder wealth. Nicholas Havoutis states, “Proactive working capital management is fundamental to a company’s ability to adapt in a challenging economy, because it’s a discipline firmly within an organization’s control that can be practiced independent of the current macroeconomic environment,” (2003). He goes on to say, “Cash management activities, once seen as managing cash inflows and outflows, are increasingly viewed as fundamental to enhancing shareholder value,” (2003). Another importance of minimizing working capital is “to ensure that the organization is able to find the difference between short-term assets and short-term liabilities,” (Capital Eyes). When minimizing working capital we are basically managing short-term assets and liabilities. This means cash, receivables, and payables. Successful cash management means increasing cash surplus to cover debt. There are three ways a company can increase their cash surplus in an effort to cover their debt. First, collect receivables faster. Second, get better credit terms from suppliers. Third, move inventory faster, (Capcut). “Good capital management practices can lead to the optimal management of short-term assets and the efficient use of working capital,” says Havoutis (2003). Melissa...
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