Case study.edited.edited (1)

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University of Notre Dame **We aren't endorsed by this school
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EG 151
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Management
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Nov 5, 2023
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7
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1 Sue McCaskey's Cookie Company Case Analysis Student's Name Institutional Affiliation Course Name and Number Instructor's Name Date of Submission
2 Sue McCaskey's Cookie Company Case Analysis Put yourself in Sue McCaskey's position and prepare a detailed report to Dan Block and Ed Spriggs on managing the inventory of the EG151 exhaust gasket and the DB032 drive belt. As the new materials administrator of Parts Emporium, Sue McCaskey has identified several supply chain issues that need to be addressed. These include frequent backorders, unnecessary losses of sales, higher inventory levels than expected with no increases in sales, and summary data about inventory stats not being available. To address these issues, McCaskey recommends concentrating on two products among the extensive product lines of the company, namely EG151 Exhaust Gasket and DB032 Drive belt. She also suggests presenting a proper inventory system and recognizing all relevant costs. This should be a type of inventory system that a company would implement and then identify related costs. Additionally, she recommends providing an actual software system that could be purchased to manage an inventory system. The benefits that would be relevant to the case scenario should be explained. McCaskey believes that a cycle-service level of at least 95 per cent should be achieved to reduce the annual cycle inventory, stockout, and order costs. To achieve this, strategic and tactical changes might improve the company's inventory performance, reduce variability, and improve customer service. There should be at least two strategic and two tactical changes presented and identified as either strategic or tactical. Based on the above recommendations, I suggest implementing the following changes: Strategic Changes:
3 Concentrate on two products : As recommended by McCaskey, Parts Emporium should concentrate on the EG151 Exhaust Gasket and DB032 Drive belt. This will help in reducing the inventory levels while improving customer service. Implement a proper inventory system : A proper inventory system should be implemented to identify related costs and improve inventory performance. Tactical Changes : Reduce lead time : The lead time for the EG151 Exhaust Gasket and DB032 Drive belt should be reduced to improve customer service. Improve forecasting : Forecasting techniques should be improved to reduce variability in demand. These changes will help Parts Emporium reduce its annual cycle inventory, stockout, and order costs while improving customer service. Discuss Parts Emporium supply chain and possible remedies for its supply chain problems. The Parts Emporium case study portrays the supply chain issues confronting Sue McCaskey, the new materials administrator of a wholesale car parts merchant. The company is facing frequent backorders, unnecessary losses of sales, higher inventory levels than expected with no increases in sales, and summary data about inventory stats needing to be available. To address these issues, McCaskey recommends concentrating on two products among the extensive product lines of the company, namely EG151 Exhaust Gasket and DB032 Drive belt. She also suggests presenting a proper inventory system and recognizing all relevant costs. This should be a type of inventory system that a company would implement and then identify related costs. Additionally, she recommends providing an actual software system that could be
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