Module 2 - Home

Overview of Module 2

Scenario

COMPANY EMAIL

FROM: George Washburn

SUBJECT: Any problems?

I just want to check in and see how you are doing and express my thanks for your efforts in productivity planning. And I want to let you know that I am looking at making some improvements in how we manage inventory here at EMC. I think we can save some cash if we do the right kind of analysis. I will more on this real soon. I want to keep you busy.

Let me know if you have any questions

~GW

Learning Wizard

WHY LEARN ABOUT INVENTORY? Recall from the course introduction that John Deere worked hard to reduce its inventories about a year ago, but this caused problems with its customers[3]. Most companies that deal with a product utilize inventories or accumulations of parts and products. In manufacturing, inventories are categorized as raw materials and purchased parts, work-in-process (as the material flows through the processes), and finished goods. Wholesalers and retailers typically inventory the finished goods products and make them available to their customers. Wholesalers deal with a more narrow set of products while retailers may provide a larger variety of products, for example, convenience stores, department stores, and the “big box” stores.

Maintaining inventories has costs and other issues that are problematic for operations management. There are methods available to manage inventories, reduce costs, and improve productivity. This module will provide some of the concepts and models. Your case assignment will be to use this information in your job at EMC to analyze some inventory problems in the Plast-brack product line.

What are other companies doing about Inventory?

3. Low Inventory Angers John Deere Customers
Singh, S.D. (2010). Low Inventory Angers John Deere Customers, Business Week. New York: Apr 26, 2010. p. 29, retrieved from: http://www.businessweek.com/magazine/content/10_18/b4176029906771.htm?chan=magazine+channel_news+-+companies+%2B+industries