Production Integrated Inventory Management †MyAssignmenthelp.com

Question: Discuss about the Production Integrated Inventory Management. Answer: Introduction: Cardinal Logistics, New Zealand is one of the major supply chain and logistics management company that is specialized in the logistics planning and work with clients to deliver the best service solutions for fulfilling the needs and requirements of the business efficiently. The contract warehousing enables delivering the best quality services and even manages distribution of products and services to the stores and shops all across New Zealand. The nature of the business is logistics and supply chain management. The tem within Cardinal Logistics boosts of a strong workforce consisting of 400 employees and is growing rapidly with the company providing better learning, growth and promotional opportunities along with competitive remuneration packages too (Cardinallogistics.co.nz, 2018). The goals and objectives of the organization are planning, implementing and controlling the storage and flow of materials and information for meeting the needs and requirements of the customers. Cardinal Logistics possesses a Warehouse management system that has the goal of controlling the movement and storage of items within the warehouse and furthermore manages the shipping, receiving and pickup of real time information and messages all throughout (Krajewski, Malhotra Ritzman, 2015). The mission of the organization is To be the best 3PL provider in New Zealand. The vision of the organization is to Deliver-in-Full, On Time, Undamaged through the measurement and achievement of the highest performance standards and provide the customers with tailored solutions for achievement of both time and financial management (Jacobs, Chase Lummus, 2014). The organizational strategy is the sum of various actions undertaken by the organization to achieve the long-term goals and objectives and furthermore develop a strategic plan through the involvement of individuals from every levels of the organization. The organizational staretgy at Cardinal Logitics has helped in managing the supply chain networks properly and even ensured better finance management, enhanced customers services along with the delivery of better marketing experience and advanced technological implementations (Slack, Brandon-Jones Johnston, 2013). The operations strategy, on the other hand, helps in evaluating the effectiveness of utilizing the various resources and ensures successful management of the work processes and the human resources within Cardinal Logistics, New Zealand. The operational strategy is actually the logistics strategy that defines the service levels and derives the most cost effective procedures for introducing new products lines and even delivering those properly to the stores from where the customers can access. The man aim of the operational or logistics strategy could be to deliver what the customers actually wanted and even work with the logistics partners throughout the supply chain (Galindo Batta, 2013). The rapid changing in supply chains culd also affect the logistics management and to adapt to the change and maintain a flexible supply chain network, Cardinal Logistics should develop the operations or logistic strategy for determining the impact of imminent changes and enable functional changes t o prevent reduction of service levels. The major issues that the business might face could be the increase costs of transportation, lack of outsourcing that prevent partnership with the Third Party Logistics Company and high competition level in the market. Other issues include inaccurate data, information, and not managing the flow of information properly. There could be various issues related to the supply chain management along with prevention of business process improvement. The costs incurred while retaining and training labor could be higher and thus the labor costs should be reduced as well (Stevenson Sum, 2015). Type of Business The company is a provider of services that facilitates the management of supply chain and logistics with ease and effectiveness. Cardinal Logistics provides various benefits including low cost of inventory management, improved customers services, and greater flexibility in fulfilling the changing logistics requirements. The capital investment is also lowered along with better inventory management. The planning for logistics has helped in working with the clients and develops the best service related solutions for meeting their needs timely. The companys outsourcing of the warehousing process also helps in allowing the customers to focus on the core business, which can furthermore overcome the labor related risks, reduce costs, improve the rate of return on investments and improve the customers services (Smith, Maull CL Ng, 2014). Cardinal Logistics also provides varied range of supply chain services that can be integrated in the warehousing solutions or maintaining order appropriate ness and integrity during the management of inventories. The service process strategy includes managing the services within the organization properly and ensuring proper management of inventories and supply chain operations. The operational technology could manage the inventories and check the accuracy of the orders placed, furthermore manage integrity and ensure that the orders were distributed timely and with convenience. The handling of large containers and consolidation of stocks along with the management of better storage solutions are major services included in the service process strategy too (Drake Spinler 2013). The handling of freights properly could reduce the costs of shipping and enhance the level of security furthermore improve the level of customer satisfaction. The service process strategy would also allow for maintaining a group or team consisting of skilled, dedicated and expert professionals who could displace the items and ensure successful contract warehousing as well (Agrawal Smith, 2013). Various stakeholders are involved in the workforce and the individuals shall possess different skills, knowledge and expertise to enhance the production process and generate more revenue for Cardinal Logistics, New Zealand. The members when attended meetings and conferences cold continue with the professional developmental plan as well as ensure systematic maintenance and improvement of the knowledge, skills and competence. The members would be encouraged to develop the CPD plan, which would further assess their suitability or convenience to work for the company and furthermore maintain high level of coordination while working (Dekker et al., 2013). The individuals must possess skills to analyze statistical data, know about the various aspects of human resource management, impact of globalization and expertise in managing the interpersonal relations too. Productivity first case current supplier cost new supplier cost labor productivity multifactor productivity overhead wages Materials 10 operators $11,000 $11,000 30 1.309090909 $2,000 $8,000 $1,000 14400 calls per week 8hrs /day 6 days/week second case 45 7 operators 15120 calls per week 1.374545455 8hrs /day 6 days/week a) The labour factor productivity for the current situation is 30 operator / hour and the multifactor productivity is 1.31. b) The labour factor productivity for the current situation is 45 operator/ hour and the multifactor productivity is 1.37. c) The organization can provide better service quality by increasing the quality of the operational processes. d) If the operator adopts the new system there will be increase in productivity by 0.06% which means that the organization should adopt the new system. Hours required each day= (10,000/20) = 500 hrs per day Workers needed per day= (500/8) = 62.5 workers/ day No of workers per shift= (62.5/3)= 21 workers/ shift [ no of shifts = 3/ day] b) Productivity of each worker= 100,000 / (100*8*3*20) = 2.08 parts/hour c) Multifactor productivity = 100,000/( 10*100,000+ 100,000 + 10,000*10) = .083 parts in $1 d) New labour productivity factor = (150,000 / (100*8*3*20) = 3.125 parts/ hour Inventory Management The effective transportation system can optimize the transportation system of the customer and at the same time, ensures the continuation of the production process, furthermore manages uninterrupted supply of the finished goods and services provided to the customers. The most effective approaches to inventory management are establishing an annual stocking policy to determine the maximum and minimum level of stocks that are kept in the waregouses. The inventory budgets are prepared to manage the fixed operational costs, costs of logistic and costs of distribution and ownership too (Coelho Laporte, 2014). The maintenance of a perpetual inventory system could be another effective inventory management approach where the Enterprise resource planning or ERP and Warehouse management system or WMS should be combined to optimize the inventory balances. The products that should be fast moved must be set up in the nearby locations to the shipping, receiving and staging areas. The Just in Time theory could be useful for controlling the inventories and store the materials properly, furthermore reduce the costs of storing materials, shipping and carrying costs too. The interest on credit is achieved to develop inventories properly as well as manage the supply chain activities without interrupting on the ability to get labor or materials. The levelized production theory would optimize the costs of labor management as well as fill the orders placed, furthermore facilitate the ability to forecast demand by month, days or years (Song, Dong Xu, 2014). The demand forecasting is an effective way to manage the inventories through the prediction of future demand for the product for the present as well as the future. The forecasting could help in forecasting the market conditions as well as understand the scopes for market expansion, furthermore revise the expectations for the future. The market forecasting would also prevent little or more use of inventories and even forecast the sales by allowing the customers to know about the business position and whether it is capable of satisfying the demands or not (Cardinallogistics.co.nz, 2018). The forecasting has the potential to deal with the various aspects required for inventory planning and management and even conduct surveys and tests of products to gather important data. 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