Introduction Company FR is a full-time service restaurant offering variety of foods for breakfast, lunch and dinner. At present, Person KD is the general manager of the store and has an issue with managing the inventory and ordering items. Each time Person KD makes an order, there is an error (either the items are in shortage or in surplus, which incurs excess cost). The shortage of items led to unhappy customers and the customer count started to decrease. Company FR uses online inventory system, where a system is used to compute the inventory, the data of current inventory at the end of period, sales for the current week, and then the system makes the comparison. This is important to the company, since it accounts to 30% of the total cost. The company sets standards to have 29% to 36% of inventory level. At company FR, Person KR makes an order based on her intuitive assumption, since she is not fully aware of inventory management. Therefore, Person KR seeks helps from one of her employees to assist with managing inventory. To determine: The reasons to consider while dealing with nearby supplier and reasons for not switching suppliers.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 3.5CQ

Summary Introduction

Introduction

Company FR is a full-time service restaurant offering variety of foods for breakfast, lunch and dinner. At present, Person KD is the general manager of the store and has an issue with managing the inventory and ordering items. Each time Person KD makes an order, there is an error (either the items are in shortage or in surplus, which incurs excess cost).

The shortage of items led to unhappy customers and the customer count started to decrease. Company FR uses online inventory system, where a system is used to compute the inventory, the data of current inventory at the end of period, sales for the current week, and then the system makes the comparison. This is important to the company, since it accounts to 30% of the total cost. The company sets standards to have 29% to 36% of inventory level.

At company FR, Person KR makes an order based on her intuitive assumption, since she is not fully aware of inventory management. Therefore, Person KR seeks helps from one of her employees to assist with managing inventory.

To determine: The reasons to consider while dealing with nearby supplier and reasons for not switching suppliers.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

why is BPR an important concept for HRM professionals who are introducing new technology. How do you apply the BPR process to an HRM office with only an employee database and no other automated HRM functions.

Example of supply chain or logistics intervention in the mining industry: 1. Identification of the key supply chain issues or problem inhibiting supply chain outcomes, 2. The root causes of those issues in the current state, and 3. The recommended solutions to overcome those issues in the end state. Draft a report with the following: Summary Introduction Supply chain problem identified Root causes Recommendation Conclusion

For this assignment we will practice establishing ground rules through a Team Contract. A team contract will help promote teamwork and clarify team communications, as well as allows group members to voice their concerns in the working environment. For this activity you will be creating a team contract for a small food truck business you have opened up with a couple friends. Project Name Project members Code of Conduct Participation (We will section) Communication Problem Solving Meeting Guidelines