MGT602 - Business Decision Analytics: Inventory Management Case Study

This case study analyzes effective decision-making strategies, techniques, systems, and models to address Barbeque Galore's inventory management challenges. The paper identifies the problem, evaluates decisions based on company goals, and emphasizes the importance of inventory management for cost-effectiveness. It explores various decision-making techniques, with a focus on multi-criteria decision analysis, and discusses decision-making models and challenges like incomplete information and ineffective communication. The report recommends strategies such as developing audits, disposing of damaged goods, and implementing automated inventory processes to improve efficiency and achieve long-term goals. The analysis highlights the importance of selecting the right inventory levels to minimize costs and increase productivity, and the use of decision-making techniques to improve the outcome and increase the effectiveness in business development. The appendix includes a multi-criteria decision-making technique and reference materials to help with the analysis.

BUSINESS DECISION ANALYTICS
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Author note

Executive Summary
This paper discusses about the effective decision making strategies, techniques, systems and
models to take correct decision for Barbeque Galore. It is facing problem in managing inventory,
the manager needs to take decision that can help the company run for long term goals. Decision
making process identifies the problem and then evaluates the decision based on the purpose and
problem of the company. Inventory Management is needed so as to have control upon flow of
units into the stock of goods and to establish cost effectiveness for the company. Various
decision making techniques are discussed to analyze which can best suit to solve the inventory
management problem. The purpose of inventory management is to minimize the cost of the
company and reduce excessive stocks of the company.

Table of Contents
Introduction.................................................................................................................................................4
Decision- making System.............................................................................................................................4
Decision making techniques........................................................................................................................4
Decision making models (Brandenburg et al., 2014):..................................................................................6
Decision making Challenges (Modarres et al., 2016)...................................................................................7
Recommendation........................................................................................................................................8
Conclusion...................................................................................................................................................9

Introduction
This report aims at decision making techniques and systems which helps the marketing
executives to analyze and determine the effective decision for the Barbeque Galore. Inventory
Management in Barbeque Galore is important to succeed in global market, as effective
management can result in the decrease of excess stocks of the company. It ensures to have
sufficient product to maintain inventory and to meet customer demand(Beske et al., 2014). The
company is facing some problem in inventory management; this paper will focus on different
strategies for the company and its implementation. It focuses on the decisions which would result
the best product and services to the customers. Different decision making tools and techniques
are discussed which is best for the organization (Wang et al., 2016).
Decision- making System
Decision- making System contains some predominant steps such as how decision making
is practiced, focusing on some underlying theories and develops an effective model of decision
making. It is the cognitive process which results in selection of variables from several
alternatives to conclude final decision. (Zsambok et al., 2014).
Decision making techniques
Decision making techniques are used to improve the outcome and increase the
effectiveness in business development. Decision making techniques are of three categories-
random, intuition based and analytical (Banaeian et al., 2018).

The following are the decision making methods which is used to improve decision making skills-
 Multiple Criteria Decision Analysis- Grid Analysis, Kepner-Tregoe Matrix :As
marketing executive this technique can be used to provide a mixture of person’s intuition
and his analysis with the use of systematic framework that evaluates options for success
with risk assessment.
 Paired Comparison Analysis- This technique provides options to be compared with
each other in pairs to analyze one’s relative importance. The drawback of this technique
is it provides very little information which is used to identify the criteria to support each
alternative.
From the above the most effective decision making technique for the Barbeque Galore is the
multi-criteria decision analysis. It is known as the best technique for decision making model and
is used for most decision making roles. It is simpler, easy to apply for all decision types, for all
decision making methods. It is beneficial to opt as it is flexible to manage the complexity to take
the effective decision (Azadnia et al., 2015). This technique collects the information to take a
decision, and it is useful for others to take similar decisions. It manages the excess entry of units
into the stock of goods which results in managing cost efficiency (Manzouri et al., 2014).
These techniques can benefit BBQ in multiple ways-
 This technique is used to design new food supply chain. Food supply chain mainly
increases demands of customers for food with quality. Simulation tool is used to make
decisions which checks for efficiency and responsiveness. This provides a new approach
for sustainability of logistics and analyzing better quality of food.

 Multiple criteria decision making helps to analyze other alternatives which can help to
minimize loss to the company.
 This decision making technique makes the complex design procedure transparent and
ensures qualitative and quantitative approach.
 Paired comparison analysis helps to critically evaluate number of alternatives. This is
used to solve most problematic situations and comes up with a solution which is more
effective.
 It set priorities where the presence of conflicting demands can be observed in resources.
 It is mainly used when company doesn’t have objective data for decision making.
 It also focuses on employee’s qualification, ability, skills, while hiring for a new job role.
Decision making models (Brandenburg et al., 2014):
 Iconic Model- It is the physical replica of the system
 Analog Model- reality is reflected in symbolic representation
 Mental Models- This represents the descriptive form of decision makings situations.
 Mathematical Models- It delivers the mathematical description of abstract model.
Decision making Challenges (Modarres et al., 2016)
Incomplete Information- This is a major problem for every manager with lack of information
which can be a problem of uncertainty. Many variables are attached for a person needed to be
examined fully.

Un-supporting Environment- The external and internal environment is more effective in an
enterprise which affects the nature of decisions and their implementation. If there is trust and
goodwill in the organization then the manager can take the decision with confidence.
Non- Acceptance by Subordinates- If the subordinates have a stake in the decision, acceptance
is necessary by the subordinates for an effective implementation. Demographic leadership style
involves subordinates to effectively suggest, criticize and make recommendation upon policies in
relation with acceptance and commitment.
Ineffective Communication- It is one of the problems in decision making process. It makes
implementation difficult as the manager lacks in communication of all decisions to the
employees in simpler language.

Recommendation
 The inventory management problem can be solved by analyzing the value of each
category.
 By developing audits and procedures which can help to track the problem correctly.
 With the disposal of damaged goods or expired goods can help in managing the update
system for new goods.
 Develop an effective decision making strategy which can help in long term vision and
mission. It values for sustainability and also the short term decisions can meet immediate
needs of the company improving cash flow.
 Barbeque Galore can increase its efficiency by introducing automated inventory and
order process, barcode management also helps to keep track of goods in time.

Conclusion
The Barbeque Galore must utilize some effective steps for decision making. The decision
making tools are effective in different situations, the manager must analyze and critically
evaluate the best outcome. Here the solution is to develop effective strategy for decision making
and numerous techniques can help the company to guide in right direction. The multi-criteria
decision analysis technique can solve the problem for Barbeque Galore. The manager can take
the decision for effective inventory management by analyzing the root of the problem. Earlier the
inventory was not planned and excess amount of inventory was stuck. Identifying the right
amount of inventory depending upon the customer demands helps to minimize the cost of the
company and increases productivity.

Appendix
Multi criteria decision making technique
Weekly
progress
Monthly
progress
Quarterly
progress
Yearly progress
Which item
have more votes
Which option
should be
focused more
upon
Which can
minimize cost
efficiently
Which items
should be
ordered more to
balance
inventory of
goods

References
Azadnia, A. H., Saman, M. Z. M., & Wong, K. Y. (2015). Sustainable supplier selection and
order lot-sizing: an integrated multi-objective decision-making process.International
Journal of Production Research, 53(2), 383-408.
Banaeian, N., Mobli, H., Fahimnia, B., Nielsen, I. E., & Omid, M. (2018). Green supplier
selection using fuzzy group decision making methods: A case study from the agri-food
industry.Computers & Operations Research, 89, 337-347.
Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and
dynamic capabilities in the food industry: A critical analysis of the
literature. International Journal of Production Economics,152, 131-143.
Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for
sustainable supply chain management: Developments and directions. European journal of
operational research, 233(2), 299-312.
Manzouri, M., Ab-Rahman, M., Zain, C., & Jamsari, E. (2014). Increasing production and
eliminating waste through lean tools and techniques for halal food
companies.Sustainability, 6(12), 9179-9204.
Modarres, M. (2016). Risk analysis in engineering: techniques, tools, and trends. CRC press.
Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics,176, 98-110.
Zsambok, C. E., & Klein, G. (Eds.). (2014). Naturalistic decision making. Psychology Press.