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(Doc) Butler Systems Case Study

   

Added on  2019-09-30

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Running Head: BUTLER SYSTEMS CASE STUDYButler SystemsCase StudyStudent Name: Student ID: Course Name: Course ID:Faculty Name: University Name:

BUTLER SYSTEMS CASE STUDY1The company, Butler Systems, has deal with SDX for the good quality battery to the company.The Butler Systems produces EPS for the customers whose primary components are HD-5battery that are procured from the external party. The suppliers for HD-5 are selected through thebid. The Butler Systems has always tried to deal with the suppliers honestly and under the pre-defined rules, regulations, statements mentioned in the contract. The current contract of the company was with SD5. The recent development in the Chinesemarket concerning the demand of HD5 battery has changed the orientation of the suppliers fromButler Systems to that of the auto-manufacturers in China. Moreover, one fine morning the vicepresident of the came to realize the contract that the current contract has gone void and thesuppliers are willing to double the contract price considering the increased demand of thebattery.The vice president also came to know that the company has currently only 20 days of inventoryfor batteries instead of suggested 90 days. As the VP of operations, I would say that the lack of attention to the external market and thechange in the orientation of the suppliers are the major reason (Lings, 1990). If my company hadregularly assessed the market condition for the variables that can impact the battery price thenthis situation would not have come up. Moreover, the internal operational management does notseem up to the mark as the lack of inventory and new contract might stall the company’s sale(Bowersox et al, 2002). At present, I will take two levels of actions for the company. The first action will be immediateand the second will be long term. In the immediate action, my response will be to fill theinventory for the next 90 days so that the company’s production keeps going. As I failed to

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