Operation Management
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Operations Management
MGT 6170
Final essay
Southern Toro Distributor
Student: Hoang Xuan Linh
Class: CMU 12A
Total pages: 10
Score
SECTION 1: CASE SUMARY
Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas. The case concentrates on the conversation between Melaney and his son about the company’s inventory level and ways to manage goods orders of the upcoming spring seaso. So far, the company has changed the method of managing orders through purchasing the Rytech computer system, nevertheless, it seems that Joe Father has not totally trusted this system. Rytech system is expected to reduce the level of inventory by 30% through the method Economic Order Quantity (EOQ) applied in the period of re-ordering each product. This solution is based on the fact that Toro is now having three fixed ordering times in a year. However, Joe Father only trusts his market sensbibility. He always makes orders on the basis of previous consummption levels, and then adjusts goods quantities after receiving addtional inforrmation of the fluctuation in demands. Therefore, his inventory turnover is estimated to be at least 3 turns/year. At the moment, there is existing inefffectiveness in storage of two products : gear driven rotary whose sales have slumped recently and Monitor controller- the spare part has the function of insurance for several dedicated customers. On the contrary, the 1 inche valve series 230 is very much in demand, even already
| | |
Operations Management
MGT 6170
Final essay
Southern Toro Distributor
Student: Hoang Xuan Linh
Class: CMU 12A
Total pages: 10
Score
SECTION 1: CASE SUMARY
Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas. The case concentrates on the conversation between Melaney and his son about the company’s inventory level and ways to manage goods orders of the upcoming spring seaso. So far, the company has changed the method of managing orders through purchasing the Rytech computer system, nevertheless, it seems that Joe Father has not totally trusted this system. Rytech system is expected to reduce the level of inventory by 30% through the method Economic Order Quantity (EOQ) applied in the period of re-ordering each product. This solution is based on the fact that Toro is now having three fixed ordering times in a year. However, Joe Father only trusts his market sensbibility. He always makes orders on the basis of previous consummption levels, and then adjusts goods quantities after receiving addtional inforrmation of the fluctuation in demands. Therefore, his inventory turnover is estimated to be at least 3 turns/year. At the moment, there is existing inefffectiveness in storage of two products : gear driven rotary whose sales have slumped recently and Monitor controller- the spare part has the function of insurance for several dedicated customers. On the contrary, the 1 inche valve series 230 is very much in demand, even already
References: 1. Textbook “Manufacturing process management” provided by California Miramar University and Center for Systems Development. 2. Lecture delivered by the academic. 3.http://www.wattpad.com/1537034-qtdn-ch%C6%B0%C6%A1ng-3-qu%E1%BA%A3n-tr%E1%BB%8B-mua-h%C3%A0ng-v%C3%A0-d%E1%BB%B1-tr%E1%BB%AF-h%C3%A0ng?p=12#.Ubg8YOd7Lg8 4. http://www.dongduong.edu.vn/index.php/San-xuat-va-chat-luong/Quan-ly-du-tru.html ----------------------- Examiner’s signature In number In word