Company HI is doing business of assembling high pressure washer system and sales of the system accessories. It consists of wide range of products. Though the company has significant amount of sales, the company mainly focuses on assembling equipment of coin operated self-service car wash system where the owner can wash their car by themselves. The company functions with 23 people and its key management team is shown below. The present inventory system comprises of order for refilling stockby the stockroom foreman and the purchasing manager who checks when the stock is low. The majority of inventory parts come from car washes such as paper towels, detergent and wax concentrate. The shop floor inventory are stored in assembly area. It is out with one of the basic item which causes significant downtime. The company purchases many of its products from manufacturer or wholesaler. There is a question about the credibility of the firm due to recent loss. To determine: The recommendations and rationale on revised inventory control system.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 2.1CQ

Summary Introduction

Introduction:

Company HI is doing business of assembling high pressure washer system and sales of the system accessories. It consists of wide range of products. Though the company has significant amount of sales, the company mainly focuses on assembling equipment of coin operated self-service car wash system where the owner can wash their car by themselves.

The company functions with 23 people and its key management team is shown below.

The present inventory system comprises of order for refilling stockby the stockroom foreman and the purchasing manager who checks when the stock is low. The majority of inventory parts come from car washes such as paper towels, detergent and wax concentrate.

The shop floor inventory are stored in assembly area. It is out with one of the basic item which causes significant downtime. The company purchases many of its products from manufacturer or wholesaler. There is a question about the credibility of the firm due to recent loss.

To determine: The recommendations and rationale on revised inventory control system.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which one of the seven quality cost tools would be use to figure out how many atm's a bank needs at a new location

Use the dimensions of quality to describe typical characteristics of these products and services:e. Surgery and postsurgery care

A luxury hotel has been receiving a lot of complaints from guests recently. The manager worries that if these complaints continue, the hotel will start to lose clients. Therefore, you have been hired as a consultant to correct the problem(s). A list and count of the major complaints by week for the last month is as follows: Week 1 Error on bill 10 Room not ready at check-in 8 Room service delivery late 3 Long line at check-out 10 Week 2 Error on bill 12 Noise in hallway 2 Long line at check-out 5 Room dirty 10 Week 3 Not enough towels in room 5 Error on bill 7 Room service delivery late 6 Not enough close-up parking 2 Week 4 Room dirty 7 Error on bill 9 Room not ready at check-in 10 Long line at check-in 9 You have decided to use a few of the “Tools of Quality” to present your finding to hotel management. Prepare a report to management that includes the…