Inventory Proposal

Inventory Proposal

Name

QRB/501

August 22, 2012

Instructor

Inventory Proposal

In reviewing the Summer Historical Inventory Data (SHID) Team A has determined that not enough information is provided to make sound business decision. Using poor information to make decision can hinder an organization further than its current problems. SHID shows highs over the summer months. Team A had identified that crude oil companies experence similar spike in sales. Certain times of the year the usage of crude oil experiences highs, summer month because of travel. By examining the SHID and adding some needed variables, Team A will be able to make the sound decision that the organization needs.

The current SHID information does not give an accurate account of the organization. The biggest issue with the SHID is the lack of data to explain why there are no high sales over consecutive months. This forces Team A to make an educated guess over supply and demand to interpret SHID. Making an educated guess over the data allowed our team collectively to add an additional four years to the data already given. Below is our conclusion of our findings.

Summer Historical Inventory Data

The two most immediate problems with the Summer Historical Inventory Data (SHID) was the lack of necessary data and its structure. Basically our organization knows how much is being sold over a four year period, but there is no way to determine how company expenses compare to the demand in sales. Also, we are unable to really make sense of the SHID in its current form. The data needs to be reorganized so management can make full use of it. Figure 1 represents the original format of the SHID.

| | |Summer Historical Inventory Data |

| | |Typical Seasonal Demand for Summer Highs |

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