Current system of controlling finished goods inventories

Assignment Help Operation Management
Reference no: EM131372287

HLL Company is a young growing organization with a turnover of over Rs 200 crores. The company has a central warehouse near the factory, 7 regional warehouses at important locations and 27 depots or storage points from where supply is made to stockiest who sell the company’s products. Its current stock holding is :

18 days All India Sales at Central Warehouse

37 days All India Sales at 7 Regional Warehouses

50 days All India Sales at its 27 depots

The company was making very good profit on its sales and the marketing manager who was incharge of the entire distribution system was least concerned about the huge inventory.

The top management was however, not very happy with the situation and hired a professional materials manager to conduct a diagnostic study. The study revealed that out of the total stock held, a considerable volume, representing about 25 days annual sales was slow moving and 72 non-moving items valuing more than Rs 4.1 crores had not moved for over two years. 354 items that were slow moving valued at Rs 6.1 crores could last for about 5 years based on the present rate of consumption.

The area salesman attached to the depots indented for the new stocks and not the depot incharge. As a professional material manager, you are asted to :

1) Comment on the shortcomings of the present state of affairs?

2) Comment on the current system of controlling finished goods inventories?

3) Suggest area of improvement in the present system.

4) Explain the advantages of your suggestion.

Reference no: EM131372287

Which parts of communication model have caused problem

Explain why quantative models can allow businesses to operate more efficiently. Be specific with the models you discuss. Which parts of the communication model have caused pro

Difference in functional conflict and dysfunctional conflict

Briefly describe each of the following communication flows: downward, upward, and lateral. What does each type of flow accomplish in an organization? What are the six forms of

Process view of distributive justice and end-state view

What is the difference between a process view of distributive justice and an end-state view? Discuss the meaning and problems associated with using the end-state view criteria

Customer relationship marketing

Customer Relationship Marketing is generally considered to have its foundations in three B2B marketing functions. Explain what the functions are and what each contributes to a

How you will calculate the economic order quantity

Suppose you are working as a Inventory Manager in a manufacturing company. Your company requires 1000 units of raw material per month. The ordering cost is Rs 100 per order. T

Four steps in the lead generation and management process

Describe the four steps in the lead generation and management process. (Hint: Generate leads, Qualifying leads, Lead distribution, Following-up to convert on the leads)(anothe

Seller delivered the conforming goods to shipper

Seller contracted to sell goods to Buyer. The contract was a destination contract. Seller delivered the conforming goods to Shipper, a common carrier, for delivery to Buyer`s

What should be initial bargaining position of school board

The annual contract negotiations between the Pleasant Ridge Board of Education and the Pleasant Ridge Classroom Teachers Association (PRCTA) are due to begin July 1, one week


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd