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Running head: INVENTORY PROPOSAL
Inventory Proposal - Brad’s Sporting Goods
Zuzana M. Osburn
University of Phoenix
Inventory Proposal – Brad’s Sporting Goods
Upon reviewing our latest financial statements, it is evident that our store is in a dire need of improved inventory control and inventory management system. Our winter inventory occupies the warehouse long into the summer months and our store comes up short when customers demand summer supplies during summer months. Our exploration of different inventory control systems brought us to a conclusion that our store would most benefit from implementation of Just In Time inventory control system.
JIT Inventory Control System is about eliminating waste and gaining the most value out of our operation. JIT Inventory Control System will provide the platform for ‘lean manufacturing’, enabling us to have the exact amount of inventory we need, when we need it-no more and no less (Sadler, 2010).
Inventory remaining in our warehouse collects dust and cost instead of revenue. In addition to lost profit from administration, financing and storage costs, inventory in the warehouse has to be insured or is exposed to risk such as fires, floods, obsolescence, and market depreciation. With Just In Time Inventory Control System implemented, we will be able to:
* Scan inventory upon receipt at the warehouse
* Enable purchase orders to be available on a real time basis
* Allocate incoming inventory to customer orders
* Ship inventory as soon as it's received at the warehouse dock
* Confirm the shipment of merchandise to customers
* Easily track that the correct items and quantities were fulfilled
The following table presents Brad’s Sporting Goods typical seasonal demand for summer inventory.
Month | Year 1 (Base Period) | Year 2 | Simple Index | Year 3 | Simple Index | Year 4 | Simple Index | Forecast Year 5 | Simple Index |
1 | 18,000 |...
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