Estimate inventory benefits associated with each of policy

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Reference no: EM132234063

Estimate the inventory benefits associated with each of the policy changes proposed by Gregory and Hayes. Would these savings be adequate to address the inventory challenges faced by Scientific Glass?

Additional Info/Changes:

In order to solve the analyzed problems in the previous part, there are actually two main aspects to consider: firstly, number of warehouses and their structure can be changed; secondly, related policies can be changed and of course appropriate ones can be done simultaneously.

For changing the number of warehouses, in other words, centralizing or decentralizing warehousing functions, available options are considered as:

Continuing with 8 warehouses: This option makes no change on the network of the warehouses and all regions will be supplied its warehouse if there is no stock-out occurs.

One central warehouse: In this option, one central warehouse near to manufacturing facility at Waltham will send all customer orders from one location.

Two centralized warehouses: In this option, addition to the main warehouse at Waltham, there will be an additional warehouse at the west, at Phoenix, and it will be supplied from Waltham.

Demand of east region will be met from Waltham, demand of west region will be met from Phoenix and demand of central region will be met from both warehouses, assuming to have equal shares on the central region.

Outsourcing the warehousing functions: In this option, all warehousing actions will be outsourced to Global Logistics (GL) and distribution will start from main warehouse at Waltham and then GL will be responsible from rest of the operations.

In addition to these options, there are some policy change proposals which try to make POM approach better, like periodic audits and increasing reporting activity levels, stopping trunk stock activities etc. Since these policy changes can be applied at different warehousing functions these proposals will be analyzed one by one and their possible effects will be considered.

Reference no: EM132234063

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