Grill Rite Case Study Essay

There are five issues that are relevant.The presidents stance on steady output conflicts with seasonal demand. However, it is unlikely that this go out change. The main problem is stemma management. One advantage of having a single, centralized warehouse is the lower need for safety stock due to the canceling effect of random variability in orders from the various regions. Conversely, with separate warehouses, each warehouse needs a relatively larger safety stock to guard against variations in demand. This would enable the centralized warehouse to see what the regional warehouses are stocking and also review their historical demand patterns and future customer forecasts. The fact that the regional warehouses have increase their order size but customer service has not improved reflects that the wrong armory items are very likely being ordered. Relevant be would include transaction costs, transportation costs, versus the potential increase in profit by making up a shortage. Other is sues include the following introduce ONE One alternative might be to identify a complementary product that would offset seasonal demand for electric grills.ISSUE both What is needed is overall control of the system that would take into account seasonal variations in demand and achieve a better match between regional demand and supply. This might involve making or improving regional forecasts. In any case, improved system visibility is essential direct get to to regional warehouse data by the main warehouse is needed in order to be able to coordinate and set priorities on inventory shipments to regional warehouses.ISSUE THREE It is also necessary to examine the feasibility of shipping from one warehouse to another when a shortage occurs.ISSUE quad Develop a policy regarding shipments from the main warehouse (to end user customers versus regional warehouses).ISSUE FIVE Invest in software (distribution resource intend DRP) which would provide desired visibility and also enable the main warehouse manager to push inventory where it is needed versus regional warehouse managers pulling inventory where they believe they need inventory, which may not be correct.