Explore BrainMass

Decision making concepts and methods for an automobile parts warehouse

-Critical Thinking
-Risky Decision Making
-Conceptual Model Analysis

Describe these three methods of managerial decision making.

Using automobile parts warehouse as an example and analyze what concepts are applicable and not applicable to the job. And the reasons to support your statement

Solution Preview

The auto parts warehouse is a unique environment. It requires general facilities and
materials management skills. Within the broad category are several areas of knowledge that
may required. Supply chain processes, automated software applications, and development of
safety programs or injury prevention are some key skills needed in a materials management
environment. Managing an automotive parts facility also requires a basic knowledge of
automotive parts. Knowing what each part does or how it relates to the auto can help in
determining how or where each type of part is stored. It may also help in determining any
particular conditions that a part may need, such as climate control or moisture prevention.

The knowledge and skills required to operate and maintain an auto parts warehouse
are often utilized in the decision making process. Therefore, the various approaches to
decision making may be more or less suitable to the particular work environment. Critical
thinking in decision making involves exploring all the possibilities and the evidence to
support each of those possibilities. It is a step by step process that first requires evaluation
and identification of the problem or challenge presented. Accurate identification of the
problem is critical in considering the options and choosing the best possible solution (Cuesta
College, 2003). If the problem is not accurately identified a possible solution may not solve
the problem or may only become part of the solution.

Suppose that a parts warehouse is experiencing problems of limited space. There are
many possible solutions, such as expanding facilities, rearranging storage space for maximum
capacity, or eliminating unused stock from the warehouse. To determine which solution will
be most effective the direct or indirect cause of the limited space must first be identified. If
the warehouse is increasing the number of specific parts in storage that are not being ordered
or requested, the solutions may include eliminating the particular part from storage or
reducing the level of inventory. The warehouse manager may then conduct an investigation
with facilities that may order the part, to determine if level of demand has decreased and at
what level. If demand has decreases but the part is still ordered, a reduction in inventory may
be the best approach. If demand has decreased to the point that there is little demand, the
manager may then decide to eliminate the part from stock altogether. The additional space
may then be utilized for other parts that are in greater demand.

Analysis of the root cause of the problem may determine that overall demand for the
various parts have increased. The warehouse manager must then decide if this trend will
continue. If it is likely to continue the ...

Solution Summary

Decision making concepts and methods for an automobile parts are examined. The three methods of managerial decision making is examined.