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Beacon Lighting's Inventory Management Solution

   

Added on  2019-09-26

11 Pages2604 Words220 Views
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Running Head: Managerial Decision MakingMANAGERIAL DECISION MAKING
Beacon Lighting's Inventory Management Solution_1

Managerial Decision Making2Table of ContentsIntroduction......................................................................................................................................3Background of the company........................................................................................................3Discussion and Findings..................................................................................................................4Problem background....................................................................................................................4Problem definition........................................................................................................................4Solution generation......................................................................................................................5Solution evaluation......................................................................................................................7Implementation and action plan...................................................................................................9Conclusion.....................................................................................................................................10Reference List................................................................................................................................11
Beacon Lighting's Inventory Management Solution_2

Managerial Decision Making3IntroductionBeacon Lighting Group Limited is a famous lighting solution company in Australia and itis one of the leading companies in lighting solutions industry of the country. The company operates its business successfully from its incorporation which made it capable of becoming one of the renowned lighting solution companies of Australia. At present times, Beacon Lighting Group Limited faces a problem in relation to inventory management which influences its profit volume and operating cost in a negative manner. This particular problem arises out of a number of factors and the company needs to take some immediate steps to resolve this issue as it is essential for it to succeed. The main aim of this study is to discuss the problem statement of Beacon Lighting Group Limited that it is currently facing with inventory management and to propose a relevant solution as an effective resolution of this problem. The study includes discussion in five sections such as the background of the problem, the definition of the problem, generation of the solution to resolve the problem, evaluation of the solution generated, along with implementation and action plan. The current study is drafted with the purpose of guiding Beacon Lighting as well as the other companies which are suffering from a similar problem and intended to address it in an effective manner.Background of the companyBeacon Lighting Group Limited was established in the year 1967 and from the very beginning its business operations, it has introduced itself as one of the specialist lights, ceiling fans retailers in Australia. Beacon uses to offer a number of decorative lighting solutions and designer fashionable ceiling fans to its customers. It also offers a huge range of electrical products along with advisory and knowledge providing services in relation to those electrical products. The products Beacon uses to offer to the customers are exclusively designed and highly capable of meeting customers’ demand for decorative and fashionable lighting and solutions. The products Beacon offers include table lamps, pendants, floor lamps, chandeliers, exteriors, ceiling fans, globes, wall lights, down lights, spotlights, batten fixes, bathroom lightings, flush mounts, solar panels, and accessories (bloomberg.com, 2019).As Beacon’s products encompass fashion, design, and energy efficiency features, it becomes one of
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Managerial Decision Making4Australia's favourite lighting solution companies. Beacon is aimed to expand its business in the national and international market by improving the customer's environment. Beacon Lighting is committed in order to provide environmentally friendly and fashionable products to the customers with expertise delivery system and unparalleled service (beaconlightinggroup.com.au, 2019). Discussion and FindingsProblem backgroundManagement of inventory is one of the most crucial tasks every manufacturing and retailing company needs to concentrate. Poor inventory management often leads companies to face frequent stockouts, blockage of cash, and wastage of raw materials as well as finished products due to their reduced effectiveness and usefulness and more. Lack of proper strategies and practices in order to manage inventory increases the business cost. At Beacon Lighting Group Limited, the improper inventory management practices led it to face a number of problems associated with low inventory turnover rate, increasing the cost of storage, imbalanced lead times, and a large amount of backdated or obsolete inventory. Beacon Lighting's less focus on its inventory management will affect its severely in long-run which will accordingly lead the company to lose customers and reduction in profitability (Lwiki et al. 2013). During the past fewyears, Beacon Lighting is facing this issue and it makes the company invest more in channeling inventory. Ineffective inventory management starts with improper analysis and inventory handling strategy. The lack of thorough analysis and measurement of inventory led Beacon Lightto face problems related to poor inventory management. Due to the lack of an inventory management system, Beacon uses to face a lot of hindrances while providing optimum customer satisfactory products and related services.Problem definition The problem Beacon Lighting Group Limited of Australia currently facing is inventory management. Inventory management is an element of a company’s supply chain management. The process of inventory management uses to supervise the movement of finished goods from
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