...Manager’s Instituting downsizing change Corporate downsizing as a restructuring strategy has been around for many years. It was implemented primarily by companies experiencing difficult economic times ,However, since the downsizing has become a leading strategy of choice for a multitude of companies around the world. ..... Click the link for more information. Most downsizing intentions are immediate reduction of costs and increased levels of efficiency, productivity, profitability, and competitiveness. The adoption of strategic downsizing by my company remained popular yet suggests that the overall consequences are negative .Downsizing has deep financial, organizational, and social consequences. The overall picture of the financial effects of downsizing is negative and I feel is a total failure. While my company reported financial improvements, the majority have failed to report increased levels of efficiency, effectiveness, productivity, and profitability. Downsizing produces considerable human consequences; such as in my company the paid sick days were revoked to regain man hours to increase production and profitability, thus penalizing the employee. This evolution came into effect after the company wanted to cut cost, but implemented the process by labeling it as a repercussion of employees abusing the company. Some companies have reported positive financial reports in the short term, yet the long-term financial consequences of downsizing have...
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... Meaning and Definition of Inventory In dictionary meaning of inventory is a “detailed list of goods, furniture etc.” Many understand the word inventory, as a stock of goods, but the generally accepted meaning of the word ‘goods’ in the accounting language, is the stock of finished goods only. In a manufacturing organization, however, in addition to the stock of finished goods, there will be stock of partly finished goods, raw materials and stores. The collective name of these entire items is ‘inventory’. The term ‘inventory’ refers to the stockpile of production a firm is offering for sale and the components that make up the production. The inventory means aggregate of those items of tangible personal property which are held for sale in ordinary course of business, are in process of production for such sales, they are to be currently consumed in the production of goods or services to be available for sale. Inventories are expandable physical articles held for resale for use in manufacturing a production or for consumption in carrying on business activity such as merchandise, goods purchased by the business which are ready for sale. Management of Inventories Inventories consist of raw materials, stores, spares, packing materials, coal, petroleum products, works-in-progress and finished products in stock either at the factory or deposits. The maintenance of inventory means blocking of funds and so it involves the interest and opportunity...
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...disadvantages of accounting for inventory under the perpetual inventory system The major difference between the two methods of recording for inventory accounting systems (perpetual and periodic) is the extent to which stock movements are monitored. The physical system of recording for inventory does not keep records of the movements of stock. The only information in the ledger concerning merchandise is the recording in the stock account of the total inventory determined by a physical stock-take at the end of each accounting period. However, under the perpetual inventory method, individual items of merchandise are recorded on stock cards and a stock control account is kept continuously up to date by recording movements of all inventories into and out of the business. Perpetual inventory involves keeping records of all stock movements throughout the accounting period. (It is also known as the continuous inventory method.) This method updates the balance of stock on hand on a continuous basis throughout the period allowing a greater control over stock. Every time stock moves in or out of the business, the inventory balance is updated. When stock is purchased, the balance is increased. When sales are made, the balance will be decreased. Sales returns have the effect of increasing stock on hand and purchase returns decrease the stock on hand. Withdrawals of inventory by the proprietor must also be accounted for, as this will decrease the balance of stock. As inventory is always recorded at...
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...Existing System's Inventory Process The current inventory management process at Mo's Boots begins with the stock manager. Each week the stock manager will visually inspect the inventory on hand. Based off an ad hoc cyclic inventory count he/she will create and submit a purchase order that is to be sent to the supplier for fulfillment. Once the supplier receives the purchase order they will ship the required stock to the store's receiving department. It is here that the stock manager will review the items on the truck and compare them to the truck bill that is shipped along with the supplies. Assuming that all the supplies on the truck match the items listed on the truck bill, the stock manager will manually load the incoming inventory into Mo's QuickBooks Point of Sale system based on the items barcode number. Also, it is at this time that the stock manager will release the funds and pay the supplier for the received inventory. Next in this process is the actual sale of products to the customers. A given customer will come into the store and make their selections. Once the customer has decided on what products to purchase then a request for sale will be made with the sales clerk. The sales clerk will scan each item's barcode to retrieve the sales data that has been stored into the POS system currently in place. Once the transaction is complete the inventory that was purchased will then be removed from the inventory stored on the POS system. If a customer were to decided that...
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...In the past period, inventory capacity rose from 65% to 90% and sales growth has stagnated causing Parts Emporium to hire an outside manager to figure out where the problem lies. Parts Emporium Inc. is currently facing numerous problems in relation to their inventory system. Each problem could be considered both short-term and long-term because both problems need focus immediately but may take an extended period of time to furnish. The first problem is in relation to their customer service department. The customer service department puts orders on backorder that are not immediately filled from stock. This mistake is leading to 10% of the demand being lost to competitors. The next problem is the need to change the inventory management system. When the new manager, McCaskey, requested inventory and customer service data from the warehouse, several areas did not have inventory records. Without a full functioning system in place that takes inventory of all the products in the warehouse, there is no way to tell where money is being lost and how to rectify the situation. Two alternatives the managers of Part Emporium Inc. should consider are two different inventory systems. First, a continuous review inventory system uses an items SKU, or stock-keeping unit to determine when it is time to reorder. Each time a withdrawal is made, the remaining stock is tracked which helps determine when the item is running low enough to reorder. Within this inventory system, the amount...
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...In the past period, inventory capacity rose from 65% to 90% and sales growth has stagnated causing Parts Emporium to hire an outside manager to figure out where the problem lies. Parts Emporium Inc. is currently facing numerous problems in relation to their inventory system. Each problem could be considered both short-term and long-term because both problems need focus immediately but may take an extended period of time to furnish. The first problem is in relation to their customer service department. The customer service department puts orders on backorder that are not immediately filled from stock. This mistake is leading to 10% of the demand being lost to competitors. The next problem is the need to change the inventory management system. When the new manager, McCaskey, requested inventory and customer service data from the warehouse, several areas did not have inventory records. Without a full functioning system in place that takes inventory of all the products in the warehouse, there is no way to tell where money is being lost and how to rectify the situation. Two alternatives the managers of Part Emporium Inc. should consider are two different inventory systems. First, a continuous review inventory system uses an items SKU, or stock-keeping unit to determine when it is time to reorder. Each time a withdrawal is made, the remaining stock is tracked which helps determine when the item is running low enough to reorder. Within this inventory system, the amount...
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...Inventory is a quantity of goods owned and stored by a business that is intended either for resale or as raw materials and components used in producing goods that the business sells. For example, motherboards warehoused at a computer company to be used in the assembling of its computer systems are inventory. The products displayed for sale and stored in the backrooms of a department store are inventory as well. Inventory is the heart beat of any business and its management is a major interest of purchasing managers. Operations managers usually have an indecisive attitude towards inventories as it can be costly. Since for many companies inventory is the largest item in the current assets category, inventory problems can and do contribute to...
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...Production Systems Assumptions: * available set of machine technology is fixed (short term production control decisions) * organization of production has been determined Production system * collection of material, labour, capital, and knowledge that goes into manufacture of a product * how the collection of components is put together in a specific situation defines a particular system Taxonomy of Production Systems * by different criteria and meaningful analysis applied * by production flow characteristics Production processes can be either continuous or discrete (or one at a time fashion). Three Major Building Blocks in a Production System 1. Machine Technology Base (or the Tools for Production) * Sets boundaries on the processes that can be employed in converting inputs to finished products * Long term planning decisions * Major component of productivity improvement 2. Organization * Product layout * Organizes people and machines that is satisfactory for the production of a single product * Sequential operations * Flow line organization of a production * Process layout * According to the manufacturing process involved in the production of products * Machinery is grouped based on common purposes * When there are a large number of different products using the same machinery but not necessarily in the same order * Job shop ...
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...INVENTORY MANAGEMENT INTRODUCTION Inventory is a detailed list of movable goods such as raw materials, work in progress, finished goods, spares, tools, and consumables, general supplies which are necessary to manufacture products and to maintain the plant and machinery in good working condition. Generally, Inventory refers to the materials in stock. Inventory management is the overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. RATIONALE OF KEEPING INVENTORY Every organization should consider keeping inventory for the following major reasons: a. To keep pace with changing market conditions Organizations have to anticipate the changing market sentiments and they have to stock materials in anticipation of non-availability of materials or sudden increase in prices. b. To prevent loss of sales/ orders In a competitive scenario, one has to meet the delivery schedules at 100 percent service level, they cannot afford to miss the delivery schedule which may result in loss of sales. c. To take advantage of price discounts Manufacturers offer discount for bulk buying and to gain this price advantage the materials are bought in bulk even though they are not required immediately. d. To meet the demand during replenishment period The lead time for procurement of materials depends upon...
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...INTRODUCTION OF SUPPLY CHAIN MANAGEMENT A Supply chain is defined as a set of three or more companies directly linked by one or more of the upstream and downstream flows of services, products, finances and information from a source to a customer. It is the systematic and strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain to impose the long-term performance of the individual companies and the supply chain. Supply Chain Management focuses on the management of relationships to achieve better results for all members of the supply chain including customers. The three concepts of Supply Chain Manangement consisting of the business processes, network structure and management in Supply Chain Management that are interconnected tightly. In short, SCM is a total system approach to managing the entire flow of information, materials, and services from raw-material suppliers through factories and warehouses to the end customer. QUESTION 1 YOU ARE DECIDING TO SET UP A RESTAURANT, DECIDE WHAT ARE THE FACTORS YOU WOULD CONSIDER TO DO THIS AS A SUCCESSFUL BUSINESS MODEL ------------------------------------------------- ------------------------------------------------- Top of Form Bottom of Form INTRODUCTION I ever passed a restaurant with the customers talking out of the front door and wondered, “Wow, how did this restaurant become so popular?!” A restaurant doesn’t miraculously get popular overnight...
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...Authority: 10 point Veteran preference Federal Experience: Yes, United States Air Force Logistic Service Technician for Inventory Management Clearance: Secret Security Clearance (Inactive) Objective To obtain a full time position in public service with Defense Contract Management Agency as Supply Management Specialist for job announcement number SWH89Y141405261194735D Education University of Phoenix [2011-2014] Currently attending the University of Phoenix to obtain a Bachelors degree in Business Management. Skills Focused and highly motivated Logistic Inventory Management Specialist professional, with 9 + years of extensive experience in medical, dental, surgical, environmental management, distribution, engineering, and other miscellaneous Logistic Inventory Management duties. Utilizing my background in Logistic Inventory Management, coordinating, purchasing, distributing, and receiving supplies to develop comprehensive programs based on the mission of the agency. Deploying Inventory Management based solutions and maximizing our stock levels for budgeting requirements. I’m an innovative and energetic team player, relationship builder, and highly effective communicator. * As Inventory Management Specialist I trained a staff of 10+ internal and external personnel on analyzing stock levels. This led to a 70% reduction in Inventory violations and improved the overall atmosphere in the United States Air Force. * Develop and created a purchasing...
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...planning Chapter 12: Inventory planning and... Study guide | This chapter is relatively unusual in so much as it takes more of a quantitative approach to its topic. While not avoiding quantitative models where they are appropriate, the general approach of this book is to deal with operations management from a ‘general management’ point of view. Here we include some quantitative models of how inventory is managed mainly to demonstrate that some parts of the inventory decision can be quantified. In practice, most of these decision models will be embedded within an operation’s routine stock control computer system. However, whilst working through them remember that it is the underlying principles behind the models which are more important than the mathematics on which the models are based.Your learning objectivesThis is what you should be able to do after reading Chapter 12 and working through this study guide. * Understand what is meant by an inventory and why they exist. * Identify some of the advantages and disadvantages of keeping inventory in an operation. * Understand the basic principles behind the quantitative approaches to deciding how much inventory to keep. * Be able to describe the limitations of traditional quantitative models of inventory decision making. * Identify the two main approaches to managing inventory on an on-going basis.What do we mean by inventory?The chapter discusses inventory (we use the word interchangeably with the word ‘stock’) predominantly...
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...1. Introduction Vendor Managed Inventory popularly known as VMI is gaining great momentum in retail business processes. In this era of tough competition retailers are implementing every supply chain optimization process that will reduce their costs, reduce inventory levels and increase profits. Efficient supply chain management requires the rapid and accurate transfer of information throughout a supply system. Vendor Managed Inventory (VMI) is designed to facilitate that transfer and to provide major cost saving benefits to both suppliers and retailers customers. Vendor Managed Inventory is a continuous replenishment program that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish merchandise at the store or warehouse level. In this program, the retailer supplies the vendor with the information necessary to maintain just enough merchandise to meet customer demand. This enable the supplier to better project and anticipate the amount of product it needs to produce or supply. 2. Definition and Concept Vendor managed inventory process can be defined as “A mechanism where the supplier creates the purchase orders based on the demand information exchanged by the retailer/customer”. To say this in simple terms, VMI is a backward replenishment model where the supplier does the demand creation and demand fulfillment. In this model, instead of the customer managing his inventory and deciding how much to fulfill...
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...between service and inventory costs Rationalizing safety stock settings within NXP Semiconductors by M.W.H. Roeloffzen Trade-off between service and inventory costs Rationalizing safety stock settings within NXP Semiconductors Graduation Company: NXP Semiconductors SCM Competence Center High Tech Campus – 60 (5.50) Professor Holstlaan 4 P.O. Box 80073 5600 K.A. Eindhoven The Netherlands University Supervisors: Dr. Ir. Leo van der Wegen (UT) Prof. Dr. Ir. Ton de Kok (TU/e) (Dr. Ir. Matthieu van der Heijden (UT)) Company Supervisors: Ir. Sander Kok Ir. Ruud Driesen Ir. Erik van Wachem University of Twente, Enschede Industrial Engineering and Management Science Specialization: Production and Logistic Management Mark W.H. Roeloffzen October 9th, 2007. Summary Summary ----------Context NXP operates in a highly dynamic and globalized semiconductor market. The NXP supply chain control is like it peers in semiconductor business quite complex. To manage the supply chain and to deal with the market characteristics, six so called Business Renewal II objectives were launched as part of the one page strategy. On one hand the BR II objectives target for a lower break-even point and on the other hand it aims for operational excellence. For supply chain management this translates in lower stock targets on one hand and better supply chain performance on the other hand. Because of the existing link between these two objectives, this research will support the inventory management project...
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...newspapers, magazines, confectionary and other impulse products), as well as a convenience offer of Entertainment products. High street’s trading is seasonal, peaking at Christmas, with other peaks at Easter and in August and September for the ‘Back to School’ range. WHSmith aims to build on its position as the UK’s most popular bookseller, stationer and newsagent by continuing to grow its strongly performing Travel business and delivering its High Street plan. It aims to improve the company’s profitability and cash flow generation, delivering sustainable returns to shareholder. Its working capital cycle is the sequence of transaction and events, involving its current assets and current liabilities, through which it makes profit. Inventories (stocks), receivables (debtors) and cash are all current assets of the business. Creditors (payables) who have supplied goods to the...
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