Parts Emporium has engaged Sue Mackey as materials manager for the many. She recently graduated from a prominent business school. As she is being handed the task of managing the firm’s inventory, she is upset that aggregate information is not available and she decides to randomly select a small sample of approximately 100 items and compile inventory and customer service characteristics to get a feel for “total picture”.Order now
From the result of this experiment, it seems that the inventory is in all the wrong places.
Although an average of approximately 60 days of inventory is on hand, the firm’s customer service is inadequate. Parts Emporium tries to backorder the customer order to immediately filled from stock, but some 10 percent of demand is being lost to competing distributorship. Because cookouts are costly, relative to inventory holding costs, Mackey believes that a cycle-service level of at least should be achieved.
Sue Mackey knows that her influence to initiate changes will be limited so she decides to concentrate on 2 products from extensive product line: the GAUGE exhaust gasket and the 08032 drive belt.