The inventory is misplaced, its individual records for products are not properly compiled, the customer service is insufficient, and there is loss of potential sale. Summary and data Of inventory statistics (inventory turns) are not available. Sue has to figure out how to cut down on the bloated inventories, along with improving the inadequate customer service.
She decides to begin with sample of two products to investigate the main reason of the problems- the GAUGE exhaust gasket and the 08032 drive belt. Analysis: Parts Emporium is facing various issues due to its inventory problems. These problem may effect the company in both long-term and short-term as these problem may demand a lot of time to be rectified, Their first problem is the customer service department, which places orders on the backorder which are not filled from stock right away which makes the company to loose of demands to its competitors.
The second and the most major problem is the requirement and need to the Parts Emporium for a new inventory management system. When the inventory and customer service data was from the warehouse was requested by Mackey, she was unable to get those data. This leads to situation where the company is unable to track where the money is being lost and how to resolve the situation as their current system is not effective and efficient.
