Operation management ( Inventory management ) Essay Example
The Parts Emporium case study provided motivational insights into the complexity and significance of elements underpinning efficient inventory manage system. I learned that inventory forecasts can be erroneous when based on wrong tenets. Further, it occurred to me that effective interdepartmental correspondence is vital and reliable inventory forecasts are based on demand data rather than the shipment data. Important to cite here is the understanding that late shipments exacerbate poor customer relations and may initiate their departure for competitors.
This case helped me understand that customer centred stocking is crucial for products’ and services’ demand. This connotes that inventory forecasts must be based on demand data and not heavily on shipment data. Additionally, I understood that interdepartmental communication is crucial for effective inventory management system. Though a systematic forecast method is crucial for a company, this case made me understand that different methods can be adopted at different situations. For instance, when relevant data is insufficient because the product is new, judgement method by managers and experts can serve effectively.
To improve company competitiveness and profitability, I can apply these lessons to enhance communication between departments especially via routine meetings and proper storage of data. I would ensure use of accurate data and efficient forecasting methods that give real time stock statuses, which I would use to improve customer satisfaction. Finally, through proper ordering risk analysis, I would address forecasting risks that may impair profitability and competitive edge.
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