Inventory Proposal

Inventory Proposal

Learning Team B

November 28, 2010

QRB 501-Quantitive Reasoning for Business

University of Phoenix

Jacob Simmons

Inventory Proposal

Oak Run Property Owners Association is a not for profit residential and recreational community which was incorporated in 1971. The development covers nearly 4000 acres, includes a 600 acre lake, and has a population of 2,600 residents that is divided among eight separate subdivisions. The subdivision has eight hundred and eighty homes of which half are full time home owners.

In the year 1975, the association added a nine hole golf course. Due to the tax implications that were related to the opening of this golf course, the golf course became a separate for- profit organization from the development. The property owners now own the golf course and in 1995 nine more holes were added to make this a full scale golf course of eighteen holes.

The Problem with Inventory

Over the past several years the golf facility has used previous year's sales as the basis for keeping their inventory in stock. Unfortunately due to the problems with the economy and the current recession the number of people playing golf on a regular basis has been different than in previous years. The main scenario is that the sales of both golf playing and golf accessories has been trending downward. In order for the golf facility to maximize profits and keep inventory at a proper level instead of having an inventory surplus.

Solution

In order for us at the golf facility to maximize profits and keep the inventory at an in stock level instead of an inventory surplus level we must use a variety of formulas to calculate exactly what we need for inventory and more over when we need it. Along with reducing inventory we will reduce inventory expenses such as freight charges and inventory stocking time so that our expenses will be reduced as well, then maximizing profits will occur.

Results

Once the data is collected and formulated into charts and...