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What recommendations can you make to alleviate the problems the company is encountering?




Week 6 Case;Case;Grill Rite, page 611;Write case analysis. Four points for case analysis;1. Problem definition (keep short, 1 to 2 sentences);2. Analysis;3. Alternatives (minimum of 3);4. Recommendation (solves problem, specific and actionable);Assignment is due before class.;Note: Please limit to < 2 pages;Grill Rite is an old-line company that started out making wooden;matches. As that business waned, the company entered the electric;barbecue grill market, with five models of grills it sells nationally.;For many years the company maintained a single warehouse;from which it supplied its distributors.;The plant where the company produces barbecue sets is located;in a small town, and many workers have been with the company;for many years. During the transition from wooden matches;to barbecue grills, many employees gave up their weekends to;help with changing over the plant and learning the new skills they;would need, without pay. In fact, Mac Wilson, the company president;can reel off a string of such instances of worker loyalty. He;has vowed to never layoff any workers, and to maintain a full employment;steady rate of output. ?Yes, I know demand for these babies;(barbecue grills) is seasonal, but the inventory boys will just;have to deal with it. On an annual basis, our output matches sales.?;Inventory is handled by a system of four warehouses. There is;a central warehouse located near the plant that supplies some;customers directly, and the three regional warehouses.;The vice president for sales, Julie Berry, is becoming increasingly;frustrated with the inventory system that she says ?is antiquated;and unresponsive.? She points to increasing complaints;from regional sales managers about poor customer service, saying;customer orders go unfilled or are late, apparently due to shortages;at the regional warehouse. Regional warehouse managers;stung by complaints from sales managers, have responded by increasing;their order sizes from the main warehouse, and maintaining;larger amounts of safety stock. This has resulted in increased;inventory holding costs, but it hasn?t eliminated the problem. Complaints;are still coming in from sales people about shortages and;lost sales. According to managers of the regional warehouses;their orders to the main warehouse aren?t being shipped, or when;they are, they are smaller quantities than requested. The manager;of the main warehouse, Jimmy Joe (?JJ?) Sorely, says his policy is;to give preference to ?filling direct orders from actual customers;rather than warehouse orders that might simply reflect warehouses;trying to replenish their safety stock. And besides, I never;know when I?ll get hit with an order from one of the regional warehouses.;I guess they think we?ve got an unlimited supply.? Then he;adds, ?I thought when we added the warehouses, we could just;divide our inventory among the warehouses, and everything would;be okay.?;When informed of the ?actual customers? remark, a regional;warehouse manager exclaimed, ?We?re their biggest customer!?;Julie Berry also mentioned that on more than one occasion she;has found that items that were out of stock at one regional warehouse;were in ample supply in at least one other regional warehouse.;Take the position of a consultant called in by president Mac;Wilson. What recommendations can you make to alleviate the;problems the company is encountering?;Additional Requirements;Level of Detail: Show all work


Paper#19227 | Written in 18-Jul-2015

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