This 5 page paper examines the case of Glow Globes supplied by the student. The company has been growing and the current inventory system using two warehouses is not efficient. The company need to decide whether or not to invest in a new larger warehouse or to try and increase efficiency in the current system. The paper outlines the situation, identifies the problem, present and assesses the alternatives solutions and makes a recommendation. The bibliography cites 1 source.
Name of Research Paper File: TS14_TEglowgl.rtf
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supply. The product is one that is low cost to the consumer, between $15 - $75 and is often bought as an impulse purchase. This meant the key to
sales was having the product in as any retail outlets as possible. To supply the goods to the areas covered there are the use of two warehouses. The first
is one in San Francisco; this is the primary warehouse where the majority of orders are dispatched. The secondary warehouse is in Portland. However, the increased demand had meant that
the Portland warehouse was not always able to supply the goods for the area it covered. Initially a system was used where stores would be held at set levels,
when they dropped below this trigger level there would be an order placed and goods then shipped out to the Portland warehouse. When order came in that Portland could not
fulfil the order would be transferred to San Francisco. This system needed for staff to control the stock and would result in delays to some orders. The system was changed
so instead of the trigger system with daily deliveries there would be a batch inventory management system where batches of goods would be sent out in bulk to the
Portland warehouse . This was more cost effective as it decreased the staff required to two, but increased the level of stock needed. 2. Problem Identification Then problem at
the route of the is that the company has grown and as they have grown they have increased their stock and delivery capacity and management but this has not been
managed in an efficient manner. There are already problems with the delivery to the areas supplied by the Portland warehouse. The lack of stock has already resulted the loss of
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