A Case study on Champion electric Essay Example | Topics and Well Written Essays - 1000 words

A Case study on Champion electric - Essay Example In addition, the management declared that it already had profitable products, as well as buffer stock. The high inventory levels accumulated pace for the piddy items that were necessary, yet the company did not have any. When a customer ordered a product that was not available, the company had to re-order it, thus wasting a lot of time for the customer. The balancing of too much inventory that may lead to high costs and few inventories that may yield to loss of sales is the main concern for this management. Nevertheless, a firm holds inventory with an aim of reducing costs and in order to improve customer service. The management of champion electric is concerned with the need of meeting customers’ demands, thus the need for high level of stocks. In this case, they will not loose out on sale due to lack of a product. In addition, bulk buying reduces cost incurred as manufacturers grant a fare price for the bulk buying, hence a company is guaranteed of making profits once it has bought goods at a fair price. However, some goods tend to be irrelevant, as they are remodeled by manufactures, thus, customers request for the latest model of a product. Moreover, Champion Electric lacks the latest products, as its records indicate almost a 100% in stock. Barb is given the task of getting rid of the less purchased products in order to create space for new products. A disadvantage arises here, in that, a cost is incurred in terms of storage, and when these products become outdated, the company loses money. Nevertheless, high levels of inventory may mean higher sale if the products’ prices rise, and also decrease the risk of fall in supply in the future. According to Hobbs Dennis (p.59), high inventory levels lead to high overhead costs, the stock requires a lot of space, which leads to overhead costs; therefore, it is important for Barb to introduce inventory management. The main fear of too high inventory is that it may yield to idle stock that is not purchased, which counts as a loss in any business, as the stock does not yield any returns. What would you suggest to Barb as steps to take in addressing the concerns of president Campos? The level of inventories is mainly affected by demand, uncertainty, and the supply chain flex ibility. Competitive advantage cannot be achieved by only high inventory levels; however, the ability to manage supply chain is necessary. Effective inventory management ensures that a company maintains an ideal level of product; as it acts as a key to attaining a competitive advantage for any business, such that, management and control of inventory may yield to customer satisfaction and profitability of a firm (Toomey, p.1). First, Barb should collect accurate data on the number of inventories available in the store, which also involves keen observation on the number of stocks leaving and entering the stores. Accurate entries on every stock receipts should also be considered; however, though inventory management may seem expensive, it assists in monitoring the flow in and out of goods. Inventory management is important to any firm, in that, it influences supply and demand of a product. In the champion electric case, some customers demand for products which the company has run out o f; however, this may

People, Organisations and Leadership Assignment

People, Organisations and Leadership - Assignment Example One of the notable companies that have embarked on undertaking strategic management is Alpha Reminiscent Cars (ARC). Based on the increased demand for old style cars as well as old out-of-manufacture saloons and sports cars, the company owners are now focused at expanding their production capacity in order to meet the demand of their customers. The company has two alternatives that it can use in order to expand its production. Firstly, the owners can double its work force in order to have 12 teams leading to production of 240 units. Secondly, the company can also use automated assembly-line approach. The key aim of this paper is to compare the two approaches and indicate the one that will increase ARC profit while at the same time making the employees happy. Additionally, the paper discusses issues that will be solved by the two approaches. To achieve its objective, the paper will base its argument on studies done by various individuals on team and automated assembly-line approaches. Literature reviews on merits and demerits of team and assembly line robotic approaches In his studies on evaluating a team-based approach, Libby (2012) contemplates that team approach is beneficial in that it will create opportunities for creativity. As the ARC aims at producing models that meet the needs of its customers, it will be essential for managers to create a culture of creativity. It is vital to note that if a larger number of people are involved in making a decision or coming up with a solution to a problem, each one of the team member will provide his or her idea. Afterwards the team members deliberate of the best idea and then develop it to quality products. ARC will thus benefit from improved models as a result of use of team approach. Additionally, Libby (2012) portrays team approach as a way of enhancing research skills of individuals of the team members. In this way, individuals are in a position to bring in board skills and contribution that will improve the quali ty of the final products. Another advantage of using team approach is that the company rate of production will increase (Robbins and Judge, 2007). In a work place, employees have different weaknesses and strengths. This implies that during the tackling of any project, team managers can delegate the workload among team members based on their skills and experience. As a result, a project can be completed in a timely manner. In the case of ARC, the use of team approach will ensure that the car models are manufactured is a faster rate without compromising their quality. Studies on qualitative methods in a team approach by Whitt and Kuh, (1991) indicates that in addition to the use of competitive salary, workers are motivated by working a team. Through expansion of its team, ARC will enhance the morale of its employees. It is essential to note that when a company arranges its workforce in the form of teams that are under skilled team managers, the employees are in a position to know each other. As a result, a good relationship is created in the work place. By sharing ideas, employees self esteem is attained thus improving their productivity leading to an increased output and sales. Fishbein and Ajzen (1975) depicts that team approach provides workers with chances of developing. It is fundamental to note that big and small companies keenly look for skills possessed by their employees during the recruitment process. In this regard, teams are formed by members with