The Charleston Copier rehabilitation facility is affected by operational problems resulting from lack of regular time interval for the arrival of copier from distributors. The supply of the copiers to be rehabilitated is in abnormal quantities. Due to these reasons specific time and material planning cannot be undertaken by the facility centre. Thus inventory of materials is out of control in the facility. Lack of reliability and efficiency of the personnel in the purchase and inventory departments, necessitates additional time and cost requirements for checking and validating their orders. In the purchasing department, issuing of the purchase order is based on five year old EOQs. Usage of obsolete EOQ plan results in reducing the accuracy of inventory decisions in the present conditions.
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Identification of alternatives
The major problem in the facility is lack of specific time interval for the supply of rehabilitating copiers by distributors. To overcome out of control problems resulted from this can be corrected by implementing adequate time plan for the supply of copiers by the distributors. The operational problems resulted from lack of trust of employees can be overcome by strengthening the direction and control in the departments. Appointment of efficient and well qualified staff members in place of existing inefficient employees also can be adopted. Another way is to apply accurate planning on the inventory and material management and to have stringent direction control and motivation over the existing staff members.
Determination of the evaluation criteria
Effectiveness of the alternatives for providing improvement in operational efficiency with reduced cost should be the selection criteria for the corrective measures.
Evaluation of alternatives
Appointment of additional staff in the organization seems to be inadequate for correcting the problems in the facility. It will increase operating costs of the facility and the result is only probable. The direction, control and motivation over the existing employees will help to increase their efficiency and trustworthiness. It will help to reduce the operating cost.
Choose an alternative
Proper control and direction should be provided for correcting the efficiency and trustworthy problems related to the staff in the purchase and inventory department and for this adequate number of inventory managers and supervisors have to be appointed. Accurate planning is the basic tool for overcoming the problems in the facility as it helps to reduce the complexity in operation resulting from abnormal time intervals and abnormal material quantity. Thus adequate inventory and production planning have to be formed.
“Inventory control is concerned with minimizing the total cost of inventory. The three main factors in inventory decision making process are the cost of holding the stock, cost of placing an order or the set up cost of production.” (Arsham).
Recommended corrective actions
For controlling the irregularity in supply of copiers by the distributors, proper time interval has to be fixed. Inventory planning has to be adopted in the inventory department. Efficient inventory managers should be appointed for dealing the problems in inventory control. The trustworthiness and consistency of organizational personnel should be developed through proper control, direction and motivation. Newly developed EOQ plans must be used in the purchasing department instead of the obsolete EOQ plan. Permanent staffing system is better for ensuring the trustworthiness of personnel. In time of overflow of work, additional workforce can be procured from the related facilities on contract basis.
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The additional plant staff members, we want to attend the formal presentation to the plant manager includes inventory controller in the plant and the supervisors.
Risk analysis relating to each recommendation
The fixations of specific time plans may not be accepted by the distributors as it affect them badly. The procurement of staff on contract basis during period of work overflow may be affected by various factors. Inventory planning may be affected from risks such as uncertain changes in the business conditions.
- Arsham, Hossein. Economic Order Quantity and Economic Production Quantity Models for Inventory Management. EOF. 2009. Web.
- Outsourcing Good Customer Service to O21. Call Center Services. 2008. Web.