What Would You Recommend That Joe Jr. Do, Assuming He Take Control Of Southern Moro Case Study
1. What would you recommend that Joe Jr. do, assuming he takes control of southern Toro?
I would recommend that Joe Jr. do a couple of things when he takes control of southern Toro. The first thing that I recommend is to implement an inventory management system to take control of the inventory they have based on EOQ quantity and re-orders. This will allow him to take control of the inventory and be able to order what is needed based on passed statistics on orders. Joe should also find a better way of holding the inventory they have. If he can find a better way of holding the inventory they need for the future will make it more economical in the inventory management system.
2. Evaluate the importance of inventory and inventory management …show more content…
If they can set the inventory levels right than they can make a lot of profit. They will be successful if they get the inventory management right and the inventory levels right. An example of this company having the inventory management and inventory wrong was in 2012 and 2013 when it was wet, and they had way too many products and loss money because of the weather for those two years. Another time is in 2014 when they did not have enough product on hand to meet the customers demand which makes them lose money. They need to use a way to predict how much they should order so they do not have too much on hand where they have a holding expense and then also were they do not have enough to meet the needs of the …show more content…
It also on what they needed from the interpretation of the based demand they had and what they think the future demand will be at. They than adjust it based on the information tell the owner about how many new golf courses will be built. It uses information that he gets from his friends. All the information they are using can be very subjective since someone could make something up to get the ups up. The information could be misinterpreted down the line which could mess up the predictions. If the owner would leave they would not have his experience of ordering and his friends to tell them what is going on anymore and what to order for that year. As I said in the first question he should put an inventory management system that uses the EOQ for its parts and then will re-order when it thinks they need it. It will put a safety margin in so that they stay safe and always have enough product but not too much. This help with managing the inventory. They can put the information he knows into the system and will always be there even if the owner retires the next guy can still use his data and put his own into it without having to start over. They could also use ABC system to make it where the A and B are the top items and the C are the other goods. They could put a higher level of control on A and B items and this
I would recommend that Joe Jr. do a couple of things when he takes control of southern Toro. The first thing that I recommend is to implement an inventory management system to take control of the inventory they have based on EOQ quantity and re-orders. This will allow him to take control of the inventory and be able to order what is needed based on passed statistics on orders. Joe should also find a better way of holding the inventory they have. If he can find a better way of holding the inventory they need for the future will make it more economical in the inventory management system.
2. Evaluate the importance of inventory and inventory management …show more content…
If they can set the inventory levels right than they can make a lot of profit. They will be successful if they get the inventory management right and the inventory levels right. An example of this company having the inventory management and inventory wrong was in 2012 and 2013 when it was wet, and they had way too many products and loss money because of the weather for those two years. Another time is in 2014 when they did not have enough product on hand to meet the customers demand which makes them lose money. They need to use a way to predict how much they should order so they do not have too much on hand where they have a holding expense and then also were they do not have enough to meet the needs of the …show more content…
It also on what they needed from the interpretation of the based demand they had and what they think the future demand will be at. They than adjust it based on the information tell the owner about how many new golf courses will be built. It uses information that he gets from his friends. All the information they are using can be very subjective since someone could make something up to get the ups up. The information could be misinterpreted down the line which could mess up the predictions. If the owner would leave they would not have his experience of ordering and his friends to tell them what is going on anymore and what to order for that year. As I said in the first question he should put an inventory management system that uses the EOQ for its parts and then will re-order when it thinks they need it. It will put a safety margin in so that they stay safe and always have enough product but not too much. This help with managing the inventory. They can put the information he knows into the system and will always be there even if the owner retires the next guy can still use his data and put his own into it without having to start over. They could also use ABC system to make it where the A and B are the top items and the C are the other goods. They could put a higher level of control on A and B items and this