The paper "Strategic Inventory Control of Grandiose Motors" is a wonderful example of a case study on management. Following the expansion of Grandiose motors through the acquisition of new distributorship, the company faces challenges of determining the best way to manage inventories to ensure that juts the right amounts of stock are held. At the same time, the variety of items to be stock has increased. The main objective of the report is to determine how the organization may use various supply chain management theories to come up with management policies and procedures that would address the challenges of excess inventories and especially on how to maintain the balance between supply and demand.
Additionally, the report determines how to deal with the issue of a variety of inventories and how to structure the purchasing and inventory management functions. Finally, the report aims to determine how the company can make changes in management policies to reflect the changes in the company. The research was carried through an intensive analysis of various case studies and literature that is relevant to the research problem under discussion.
The report used relevant journals to determine best practices that have been successfully deployed in other organization under similar circumstances before proposing the best option for the company. The report starts with introducing some relevant literature in the field of inventory management. The report identifies the relevant concerns of management and using relevant literature makes an analysis of the companies problems. The report proposes best practices that would be ideal for the organization by making an analysis of the problems in relation to the relevant materials. The paper concludes by reemphasizing its success in determining the solution to the problems while reemphasizing the importance of using various inventory and purchasing management theories and concepts to ensure that an organization maintains its competitive position. Report Findings Background of the Problem Grandiose company has managed to maintain its competitiveness through its ability to avail to its customers a wide range of automobiles at a reduced cost by maintaining a high turnover in inventory, sustaining a high sales volume, and a low-cost structure strategy that the company desires to retain even with the expansion.
The ability to offer efficient after-sale, through diagnosis, servicing, and repairing is another core strength of the organization and it is also dependent on timely availability of materials.
Abdelmaguid, T.F and M.M. Dessouky (2006). A genetic algorithm approach to the integrated
inventory-distribution problem, International Journal of Production Research., 44: 4445-4464.
Beamon, B.M (1998). Supply chain design and analysis: Models and methods, International
Journal on Production Economics, 55: 281-294.
Buffett and N. Scott, 2004, “An Algorithm for Procurement in Supply Chain Management,
AAMAS- 04 Workshop on Trading Agent Design and Analysis, New York.
Buxey, G. (2006). Reconstructing inventory management theory. International Journal of
Operations & Production Management, 26(9), 996-1012.
Christopher, M. (1998). Logistics and Supply Chain Management. London: Pitman.
Frazelle, E. H. (2002). Supply Chain Strategy: The Logistics of Supply Chain Management. New
Krajewski, L., & Ritzman, L. (2002). Operations Management. New Jersey: Pearson Education
Onwubolu, G. C., & Dube, B. C. (2006). Implementing an Improved Inventory Control System
in a Small Company: A Case Study. Production Planning & Control, 17(1), 67-76.
Persson, G. (2004). Supply Chain Management: The Logic of Supply Chains and Networks. The
International Journal of Logistics Management, 15(1), 11-26
Quayle, M. (2003). A study of supply chain management practice in UK industrial SMEs.
Supply Chain Management: An International Journal, 8(1), 79-86.
Toomey, J. W. (2000). Inventory Management: Principles, Concepts and Techniques. Norwell:
Kluwer Academic Publishers.