To survive in the fierce competition of the industry‚ ALKO must have an efficient and cost-saving inventory system. The purpose of this report is to analyze the distribution network of ALKO INC in order to minimize its total annual cost that subject to a customer service level of 95%. Current System First of all‚ let’s look at the situations of current ALKO’s distribution system. Take annual cost of 1 high product at DC1 under current system as example:Averageinventory=Q/2+SS=T*D/2+Z*σD*√T+L=6*35
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Activity 12 Case: Managing Inventories at ALKO Inc. • ALKO began in 1943 in a workshop established by John Williams in Cleveland. • In 1948 obtained a patent for one of his designs of bright accessories. He decided to producing and selling them in Cleveland. • The product is sold very well and in 1957 grew by 3 million; and luminous figures were well known for their outstanding quality. • In 1963‚ John took the company public and has since been very successful‚ he began to distribute
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service level for ALKO. Integrated Minds considered a scenario approach and looked at net present values to factor inventory costs and quality over the planning horizon. Striving to increase margins and expose various network characteristics and uncertainties‚ Integrated Minds analyzed many factors. ALKO was founded on the basis of quality. This principle is indirectly leading to more buffer inventory throughout the supply chain to account for high rejects in shipping. With inventory hiding the real
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to meet its announced annual profit goal for 1987 included: False inventory was generated by packaging bricks as finished products and shipping them to distributors at the end of the year‚ so that they would be in transit at the time of the 1987 fiscal inventory. A computer program was created that would generate fictitious inventory serial numbers for the boxes of bricks. The program was named “Cook Book.” After the inventory the company called the distributors and requested that they return the
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Managing the inventory imbalance at the European DC Problem Definition With the DeskJet market booming in Europe‚ retailers are demanding high availability of products. The core problem for HP is that it is piling up inventory in its European Distribution Centre (DC) to meet this demand‚ but there are still complaints of product shortages. This is because: * Wrong/unpopular country-specific product models are stocked up‚ while the popular “localized” models run out- caused by ineffective
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Company Profile: Wheeled Coach Wheeled Coach Industries‚ Incorporated is the largest manufacturer of ambulances and rescue vehicles. The subsidiary of Collins Industries‚ Inc. was founded in 1975‚ and is currently based in Winter Park‚ Florida. Wheeled Coach‚ led by their President Bob Collins‚ Jr. employs a highly trained production team of over three hundred and fifty personnel who are responsible for the assembly and final production of all ambulances in their production facility. Wheeled Coach
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| Scientific Glass‚ Inc.: Inventory Management | MPC Assignment | | INTRODUCTION In this case study‚ production and operations management (POM) issues of a mid-size company‚ named as Scientific Glass Inc.‚ in a highly growing market are studied. Using the background information on past actions of the company to correct inventory management and their results‚ and considering the market leadership opportunity‚ how inventory management approach can be made better is explained by evaluating
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Scientific Glass‚ Inc.: Inventory Management Executive Summary Scientific Glass (SG) provides specialized glassware for a variety of organizations such as pharmaceutical companies‚ hospitals‚ research labs‚ quality-control sites and testing facilities. As of January 2010‚ there was a substantial increase in their inventory balances which tied up the capital necessary for further investment needed for expansion. The debt-to-capital ratio surpassed the target of 40% preventing the company to
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MANAGING DIVERSITY - CHALLENGES FOR INDIA INC. By: ESHA GHOSH “Diversity has fast become the master key for unchaining the growth lock‚ for any truly global enterprise to reach stupefying capacities” Globalization powered by the information technology revolution throws a hue of possibilities and challenges that did not exist before. This phenomenon has not only made borders porous‚ but also shrunk the world into what is called a global village. Any nation big or small is increasingly getting
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Managing Supply Chain Inventory: Pitfalls and Opportunities 15‚ 1992 Reading Time: 23 min Hau L. Lee and Corey Billington Most manufacturing enterprises are organized as networks of manufacturing and distribution sites that procure raw materials‚ transform them into intermediate and finished products‚ and distribute the finished products to customers. The simplest network consists of one site that performs both manufacturing and distribution. More complex networks‚ such as those required to
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