Modeling, Designing and Analyzing Mooreman’s Hardware Inventory Acquisition Process

CASE: Modeling, Designing and Analyzing Mooreman’s Hardware Inventory Acquisition Process

Business Process Modeling

Business Process Modeling (BPM) is a framework that represents the interrelated and structured tasks of an organization and its segments. These tasks are involved in the organization’s value creation process.

A BPM helps to analyze, and to visualize the functioning of an organization. It also helps to examine the processes of an organization’s segment. It involves the identification of the organization processes’ design and purpose, the determination of the participants in the process and their roles, the analysis of the process, and the assessment of the process’s risks. Business Process Modeling is rooted in the efficient use of the flow of information the participants in the process communicate. This flow of information is crucial in visualizing the way an organization generates revenue, and improves its efficiency.

Mooreman’s Hardware Inventory Acquisition Process

The Mooreman’s Hardware inventory acquisition process is centralized with a strong unity of command. The company operates an autocratic buying center where the vice president assisted by a manager oversees the purchasing and warehouse operations. He does the major inventory purchasing orders including special orders for the individual stores. A warehouse manager supervises a team of six employees. The six employees receive, and store the incoming inventory items or store-keeping units (SKUs). Also, they fill the inventory requisition orders from the company’s stores.

A warehouse clerk maintains all inventory records using a perpetual inventory system and the company’s intranet.

The objective of this inventory acquisition process is to order the needed quantity of SKUs from the right vendor. In recording the inventory using the computerized perpetual inventory system, the company daily updates its inventory so that it can avoid shortages. This system is the starting point...