Production of quality end products is simply a must, a company can not afford to compromise quality for cost neither can it afford not to match buyer requirements even if the end product has been recycled. Quality control issues at this facility can be said to have resulted from the unavailability of raw materials and their increased prices when they are finally made available courtesy of hoarding by external distributors.
Problems in quality control additionally might have also arisen from hidden worker dissatisfaction issues and therefore cannot be entirely pin pointed to inventory control. One of the ways to ensure that quality is maintained therefore to ensure worker satisfaction and to purchase the raw materials that are always or often needed for the copiers in bulk that is if the business line can not afford to manufacture those raw parts themselves and thus reduce their costs. Customer service
Customer service is also another notable challenge in the Copier rehab which definitely has its effects on the profit margin because the sole reason for a company’s existence will depend on how much the customer is constantly satisfied (Clark & Staunton, 1989). According to Koch (1999), 20 percent of customers account for 80 percent of revenues in most business entities. It is therefore critical for the Copier rehab to focus a greater percentage of its efforts on this 20 percent that counts.
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As earlier mentioned, problems in customer service level in the facility are also a function of the ineffective inventory control system that therefore creates gaps and allows room for delays in shipping orders for instance. Conclusion and recommendations It is evident that all the problems experienced by the Copier Rehab and Cabrid Industries are interrelated and a greater percentage of them can somehow be traced to the outdated inventory control model in place.
Therefore investing in a good inventory control system will work to solve all the problems the facility is experiencing simultaneously and furthermore ensure that targets are met or even surpassed therefore creating an unavoidable need for another distribution plant that can be situated in the Pacific Northwest. Adopting a modern automated inventory control system is the ultimate solution for the Carbid Industries not only in their Copier Rehab but rather all round.
This will enable transmission of information to the central system easily as transactions of shipments or goods delivery to customers occur. An efficient inventory control system will automatically ensure quality control especially as we are in the business that needs us to deliver quality, the company is alerted when it needs to reorder, becomes able to easily track large shipments and detect any theft of merchandise therefore minimizing the risk of committing costly errors for the business when handling stock.
Generally summed simply the benefits of adopting such a system are cost efficient operations, excellent customer service, large savings and even bigger profit margins (Axsater, 2000). In conclusion for any production facility the essence of making the right inventory planning decisions can not be overemphasized. WORD COUNT: 1407 Reference list Axsater, S. (2000). Inventory control . New York: Springer, p101-120. Barret, D. (1969).
Automatic inventory control techniques. Wisconsin: Business Books, p. 10. Clark, A. & Staunton, A. (1989). Innovation in technology and organization. U. S. A: Routledge, p134-140. Koch, R. (1999). The 80/20 principle: the secret of achieving more with less. Australia: Currency, p. 21-23. Kenneth, M. (1972). Production Management; Systems and Synthesis. New Jersey: Prentice-Hall, p 56. Mayer, R. (1968). Production management. Columbus: McGraw-Hill, p 202.
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