MGT603 - Systems Thinking: Analyzing Woolworths Inventory Challenges
VerifiedAdded on  2022/11/27
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Report
AI Summary
This report provides a systems thinking analysis of Woolworths' inventory management problems. It begins by outlining the issues, including overstocking of low-demand products and shortages of high-demand items, which leads to customer dissatisfaction and financial losses. The report applies the CATWOE model to analyze the problem from various stakeholder perspectives, including customers, actors (suppliers and shareholders), and the transformation process. The analysis reveals a disrupted market dynamic and the need for improved inventory control. The report proposes a solution based on demand percentage, suggesting that inventory levels should be directly linked to product demand. The solution recommends setting minimum inventory levels based on daily customer numbers, and using this information to inform suppliers. Finally, the report emphasizes the importance of employee monitoring to maintain inventory accuracy and efficiency.
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