Analyzing Supply Chain Management Strategies: Call-Us Plumbing Report
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This report examines the supply chain management challenges faced by Call-Us Plumbing Supply Company Limited, particularly in response to a significant surge in customer demand. The analysis focuses on capacity planning strategies, comparing the lead and lag strategies to determine the most effective approach for meeting increased production needs. The report also explores inventory and stock management methods, including the application of inventory management tools and data analytics, to optimize operational efficiency. Recommendations are provided for outsourcing and strategic implementation of lag strategies to reduce productivity pressure and improve overall supply chain performance. A capacity planning model is presented, along with a discussion on the benefits of different inventory management techniques like Just-in-Time (JIT) using data analytics.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student:
Name of the University:
Author Note:
Supply Chain Management
Name of the Student:
Name of the University:
Author Note:
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Answer 1:
Answer 1.1.
The following are the two capacity planning strategies which can be designed for
improving the operational performance of Call-Us Plumbing Supply Company Limited:
Lead strategy:
Lead strategy is used to acquire more raw materials in anticipation of increase in orders
from customers in the future. Companies estimate their future demands and acquire materials
accordingly. Call-Us Plumbing Supply Company Limited can use lead strategy to improve its
present operational capacity. The case study clearly mentions that the expected rise the demand
for finished products to 300000 units per monthly while its present capacity is merely 1000000
units per year which comes to 80000 units approximately. This means the output production
capacity of the company is short by 220000 units. The company according to the lead strategy
can acquire excess stock of finished goods of 220000 units to meet the future estimated demand.
As already pointed out that this high increase in demand of finished goods among customers by
more than 100 percent has already created immense pressure on the present capacity of the
company (Adjemian et al., 2016). The case study also mentions that the demand surge has also
caused immense pressure on the employees of the company involved in manufacturing of the
products which led to high employee turnover. This means that the company cannot put pressure
on its internal production capacity. Thus, it is clear that the company in order to boost its revenue
generation and not put pressure on the existing resources should use lead strategy. It should use
acquire finished products from third party firms to meet the market demand till it is able to
increase its internal productivity to meet the demand of 300000 units.
SUPPLY CHAIN MANAGEMENT
Answer 1:
Answer 1.1.
The following are the two capacity planning strategies which can be designed for
improving the operational performance of Call-Us Plumbing Supply Company Limited:
Lead strategy:
Lead strategy is used to acquire more raw materials in anticipation of increase in orders
from customers in the future. Companies estimate their future demands and acquire materials
accordingly. Call-Us Plumbing Supply Company Limited can use lead strategy to improve its
present operational capacity. The case study clearly mentions that the expected rise the demand
for finished products to 300000 units per monthly while its present capacity is merely 1000000
units per year which comes to 80000 units approximately. This means the output production
capacity of the company is short by 220000 units. The company according to the lead strategy
can acquire excess stock of finished goods of 220000 units to meet the future estimated demand.
As already pointed out that this high increase in demand of finished goods among customers by
more than 100 percent has already created immense pressure on the present capacity of the
company (Adjemian et al., 2016). The case study also mentions that the demand surge has also
caused immense pressure on the employees of the company involved in manufacturing of the
products which led to high employee turnover. This means that the company cannot put pressure
on its internal production capacity. Thus, it is clear that the company in order to boost its revenue
generation and not put pressure on the existing resources should use lead strategy. It should use
acquire finished products from third party firms to meet the market demand till it is able to
increase its internal productivity to meet the demand of 300000 units.

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SUPPLY CHAIN MANAGEMENT
Lag strategy:
The second strategy which Call-Us Plumbing Supply Company Limited can utilize
to manage the sudden surge in market demand is lag strategy. Zhironkin et a. (2016)
mentions that lag strategy comes into play when companies reach their maximum
productivity limits. They, in order to bridge the gap between their respective present
productivity limits and the actual numbers of units demanded by their clients, acquire the
excess units from third party manufacturers. For example, the present production capacity of
Call-Us Plumbing Supply Company Limited is around 80000 units of products while the
expected market demand is 300000 units which means there exists a gap of 220000 units.
Haberler (2017) while contrasting lead and lag strategies applications in managing sudden surge
of market demand mentions that lead strategy is more aggressive compared to lag strategy. This
is because as per the lead strategy, Call-Us Plumbing Supply Company Limited would acquire
the entire stock of 300000 units from third party companies. The company in case of lag strategy
would be required to acquire the excess 220000 units.
Answer 1.2.
The two capacity planning strategies which the management of Call-Us Plumbing Supply
Company Limited can apply to meet the issue of higher productivity pressure compared to the
resources available are outsourcing the production of ancillary products and acquiring the
ancillary parts from third party manufacturers of parts. The case study mentions that the
company would require to raise its productivity to 300000 units monthly to meet the future
SUPPLY CHAIN MANAGEMENT
Lag strategy:
The second strategy which Call-Us Plumbing Supply Company Limited can utilize
to manage the sudden surge in market demand is lag strategy. Zhironkin et a. (2016)
mentions that lag strategy comes into play when companies reach their maximum
productivity limits. They, in order to bridge the gap between their respective present
productivity limits and the actual numbers of units demanded by their clients, acquire the
excess units from third party manufacturers. For example, the present production capacity of
Call-Us Plumbing Supply Company Limited is around 80000 units of products while the
expected market demand is 300000 units which means there exists a gap of 220000 units.
Haberler (2017) while contrasting lead and lag strategies applications in managing sudden surge
of market demand mentions that lead strategy is more aggressive compared to lag strategy. This
is because as per the lead strategy, Call-Us Plumbing Supply Company Limited would acquire
the entire stock of 300000 units from third party companies. The company in case of lag strategy
would be required to acquire the excess 220000 units.
Answer 1.2.
The two capacity planning strategies which the management of Call-Us Plumbing Supply
Company Limited can apply to meet the issue of higher productivity pressure compared to the
resources available are outsourcing the production of ancillary products and acquiring the
ancillary parts from third party manufacturers of parts. The case study mentions that the
company would require to raise its productivity to 300000 units monthly to meet the future
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increase in demand for products from customers. The case study also mentions the the company
lacks the material and human resources to support this increase in demand for its products in the
market. The case study further mentions that inability to meet this increased demand to lead to
loss of business and revenue generation opportunities. Thus, it is evident in the light of the
discussion that the firm has to adopt a strategy which would enable to meet the increase in
demand of finished products in the market without outing stress on the present resources of the
company. Thus, it is evident in this respect that the first strategy of outsourcing the production
of ancillary parts would enable to Call-Us Plumbing Supply Company to reduce the pressure on
its resources. The company would be acquiring the manufactured ancillary parts from a third
party firm. The manufacturing department would then incorporate these already manufactured
ancillary parts into the finished products. Bernhardt et al. (2016) mention in this respect that
outsourcing of ancillary products enable the firms to diversify the risks of lower productivity and
stress on their present resources to manufacturing contractors. This in fact enables the companies
to reduce their costs of production which decreases their costs of sales. Thus, the result of this
waning cost of production of finished goods is earning high rates of net profit. Thus, it can be
inferred that outsourcing the ancillary parts would enable the plumbing company to reduce the
stress on its existing resources owing to sudden increase in demand in the market.
The second option which Call-Us Plumbing Supply Company Limited can adopt to
reduce stress on its resources would be to acquiring finished goods from third party
manufacturers and selling the same in the market meet the sudden increase in demand.
Vernon (2017) mentions that obtaining finished products manufactured by third party
manufacturer and marketing the same in the market has several advantages for the companies.
First, acquiring finished goods from manufacturers reduces the requirement of the firms to hold
SUPPLY CHAIN MANAGEMENT
increase in demand for products from customers. The case study also mentions the the company
lacks the material and human resources to support this increase in demand for its products in the
market. The case study further mentions that inability to meet this increased demand to lead to
loss of business and revenue generation opportunities. Thus, it is evident in the light of the
discussion that the firm has to adopt a strategy which would enable to meet the increase in
demand of finished products in the market without outing stress on the present resources of the
company. Thus, it is evident in this respect that the first strategy of outsourcing the production
of ancillary parts would enable to Call-Us Plumbing Supply Company to reduce the pressure on
its resources. The company would be acquiring the manufactured ancillary parts from a third
party firm. The manufacturing department would then incorporate these already manufactured
ancillary parts into the finished products. Bernhardt et al. (2016) mention in this respect that
outsourcing of ancillary products enable the firms to diversify the risks of lower productivity and
stress on their present resources to manufacturing contractors. This in fact enables the companies
to reduce their costs of production which decreases their costs of sales. Thus, the result of this
waning cost of production of finished goods is earning high rates of net profit. Thus, it can be
inferred that outsourcing the ancillary parts would enable the plumbing company to reduce the
stress on its existing resources owing to sudden increase in demand in the market.
The second option which Call-Us Plumbing Supply Company Limited can adopt to
reduce stress on its resources would be to acquiring finished goods from third party
manufacturers and selling the same in the market meet the sudden increase in demand.
Vernon (2017) mentions that obtaining finished products manufactured by third party
manufacturer and marketing the same in the market has several advantages for the companies.
First, acquiring finished goods from manufacturers reduces the requirement of the firms to hold
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stock of raw materials and work-in-progress inventory. The firm would only be required to hold
stock of finished goods which the firm would be able to acquire on receiving orders from the
clients. This would require the amount of cash which the firm would be required to lock in
inventory which it turn would enhance the liquidity of Call-Us Plumbing Supply Company
Limited. Benson, Faff and Smith (2015) point out that enhanced liquidity in firms enable them to
recycle the amount invested towards inventory holding faster to earn higher profits. Thus, in this
respect it can be inferred that the second strategy which the company would apply would be
acquiring of finished plumbing products manufactured by third party and market the sell in the
market. This strategy would in fact enable the company to reduce losing of business
opportunities to cater to customers and generate higher revenue as mentioned in the case study.
Answer 1.3.
Call-Us Plumbing Supply Company Limited should implement the lag strategy to
manage the acute productivity challenge it is facing on the face of sudden overshooting of
customer demands compared to its present productivity. The following are the steps which the
company can employ:
1. The company should adopt the policy of extension of internal productivity by installing new
plants.
2. The company should use its present capacity of 150000 units a month to fulfil the demand of
the clients.
3. The company must then acquire the excess of 300000 units from third party suppliers.
SUPPLY CHAIN MANAGEMENT
stock of raw materials and work-in-progress inventory. The firm would only be required to hold
stock of finished goods which the firm would be able to acquire on receiving orders from the
clients. This would require the amount of cash which the firm would be required to lock in
inventory which it turn would enhance the liquidity of Call-Us Plumbing Supply Company
Limited. Benson, Faff and Smith (2015) point out that enhanced liquidity in firms enable them to
recycle the amount invested towards inventory holding faster to earn higher profits. Thus, in this
respect it can be inferred that the second strategy which the company would apply would be
acquiring of finished plumbing products manufactured by third party and market the sell in the
market. This strategy would in fact enable the company to reduce losing of business
opportunities to cater to customers and generate higher revenue as mentioned in the case study.
Answer 1.3.
Call-Us Plumbing Supply Company Limited should implement the lag strategy to
manage the acute productivity challenge it is facing on the face of sudden overshooting of
customer demands compared to its present productivity. The following are the steps which the
company can employ:
1. The company should adopt the policy of extension of internal productivity by installing new
plants.
2. The company should use its present capacity of 150000 units a month to fulfil the demand of
the clients.
3. The company must then acquire the excess of 300000 units from third party suppliers.

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SUPPLY CHAIN MANAGEMENT
This use of lag strategy would have three benefits to the company. Lin et al. (2017) point
out that use of lag strategy is less expensive compared to the lead strategy, thus enabling
companies using the strategy reduce their expenditures of acquiring stock of finished goods. The
first benefit of the strategy which is evident from the discussion is, that it attracts less
expenditure compared to lead strategy. The second advantage of the lag strategy to the company
would that the company would not become entirely reliant on third part manufacturers to make
goods available to consumers. Thus, in this respect it can be pointed out by using the lag
strategy, Call-Us Plumbing Supply Company Limited would be able to continue its own
production facilities without becoming totally dependent on the third party firms to cater to the
customers (Chen, 2017). The third benefit which Call-Us Plumbing Supply Company Limited
can reap by using the lag strategy would be able to reduce the pressure on its own production
facilities. This would allow the company to bring about advancement in its own production
facility to meet the future market demands. Thus, it is evident that implementation of using the
lag strategy would enable the company meet the increase in the demand for its products in the
market. The company should form a different team which would look into implement the lag
strategy. The team would first see how the available resources of the company can be utilised
before ordering further units.
Answer 1.4.
The following is the model which Call-Us Plumbing Supply Company Limited, the firm
forming the crux of the case study can adopt for achievement of ideal capacity planning strategy:
SUPPLY CHAIN MANAGEMENT
This use of lag strategy would have three benefits to the company. Lin et al. (2017) point
out that use of lag strategy is less expensive compared to the lead strategy, thus enabling
companies using the strategy reduce their expenditures of acquiring stock of finished goods. The
first benefit of the strategy which is evident from the discussion is, that it attracts less
expenditure compared to lead strategy. The second advantage of the lag strategy to the company
would that the company would not become entirely reliant on third part manufacturers to make
goods available to consumers. Thus, in this respect it can be pointed out by using the lag
strategy, Call-Us Plumbing Supply Company Limited would be able to continue its own
production facilities without becoming totally dependent on the third party firms to cater to the
customers (Chen, 2017). The third benefit which Call-Us Plumbing Supply Company Limited
can reap by using the lag strategy would be able to reduce the pressure on its own production
facilities. This would allow the company to bring about advancement in its own production
facility to meet the future market demands. Thus, it is evident that implementation of using the
lag strategy would enable the company meet the increase in the demand for its products in the
market. The company should form a different team which would look into implement the lag
strategy. The team would first see how the available resources of the company can be utilised
before ordering further units.
Answer 1.4.
The following is the model which Call-Us Plumbing Supply Company Limited, the firm
forming the crux of the case study can adopt for achievement of ideal capacity planning strategy:
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Marketing (mktg) department
acquires leads from customers
Communicates the leads
to inventory (inv)
department
Is the lead
<= inv of
FG
Y
N
Inv department informs mktg
dept. and transfers goods
Mktg dept. sell the
goods to customers
Inv depart informs
manufacturing(mnf) dept.
Is present
capacity able to
meet the leadYMnf dept. informs inv dept.
and transfers goods
N
Mnf dept. informs mktg dept.
directly
lag strategy
SUPPLY CHAIN MANAGEMENT
Marketing (mktg) department
acquires leads from customers
Communicates the leads
to inventory (inv)
department
Is the lead
<= inv of
FG
Y
N
Inv department informs mktg
dept. and transfers goods
Mktg dept. sell the
goods to customers
Inv depart informs
manufacturing(mnf) dept.
Is present
capacity able to
meet the leadYMnf dept. informs inv dept.
and transfers goods
N
Mnf dept. informs mktg dept.
directly
lag strategy
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Figure 1. Ideal capacity planning model of Call-Us Plumbing Supply Company Limited
(Source: Author)
Answer 2.
Answer 2.1.
Call-Us Plumbing Supply Company Limited can use two inventory and stock
management methods namely, inventory management tools and data analytics. The following
section would describe the two strategies and explore the ways the firm can implement these
strategies:
Inventory management tools:
The first strategy which Call-Us Plumbing Supply Company Limited can adopt to
improve its inventory management is application of inventory management tools. Zhong et al.
(2017) mention that inventory management method of physical internet or PI combines
networking technology, cloud manufacturing and artificial intelligence in determining the
inventory requirement for a given period. The inventory management tools based on PI and AI
are connected to the the other departments like marketing and manufacturing. These tools are
connected to the data bases of the other departments like marketing. For example, the marketing
department of Call-Us Plumbing Supply Company Limited obtains leads for future orders from
customers. The inventory management tools would enable the production departmental head to
access the lead data and verify whether the present inventory levels of the company are sufficient
to meet the demands of the clients. If the inventory levels are insufficient, the production
departmental head can communicate the same to the procurement departmental head. The
procurement departmental head would communicate with the suppliers the amount of raw
SUPPLY CHAIN MANAGEMENT
Figure 1. Ideal capacity planning model of Call-Us Plumbing Supply Company Limited
(Source: Author)
Answer 2.
Answer 2.1.
Call-Us Plumbing Supply Company Limited can use two inventory and stock
management methods namely, inventory management tools and data analytics. The following
section would describe the two strategies and explore the ways the firm can implement these
strategies:
Inventory management tools:
The first strategy which Call-Us Plumbing Supply Company Limited can adopt to
improve its inventory management is application of inventory management tools. Zhong et al.
(2017) mention that inventory management method of physical internet or PI combines
networking technology, cloud manufacturing and artificial intelligence in determining the
inventory requirement for a given period. The inventory management tools based on PI and AI
are connected to the the other departments like marketing and manufacturing. These tools are
connected to the data bases of the other departments like marketing. For example, the marketing
department of Call-Us Plumbing Supply Company Limited obtains leads for future orders from
customers. The inventory management tools would enable the production departmental head to
access the lead data and verify whether the present inventory levels of the company are sufficient
to meet the demands of the clients. If the inventory levels are insufficient, the production
departmental head can communicate the same to the procurement departmental head. The
procurement departmental head would communicate with the suppliers the amount of raw

8
SUPPLY CHAIN MANAGEMENT
materials inventory which the company would require. The suppliers would supply the
appropriate amount of raw materials. Thus, it is clear that use of inventory management tools
would enable the company acquire the raw materials inventory in advance to manufacture the
appropriate number of finished products to meet the demands of the customers (Figure 1). Thus,
it is evident that the strategy of Call-Us Plumbing Supply Company Limited to use inventory
management tools would enable the company estimate future demands of finished goods and
plan the production activities strategically to meet the needs of the customers and generate high
revenue. Pandya and Shah (2016) strengthen the discussion that the inventory management tools
enable firms to adopt lean management as well. This enables the firms to streamline their
manufacturing and inventory holdings with the demands of customers. Nguyen (2015) to points
out that implementation of inventory management tools enables the companies to minimize their
wastage of inventory and mobilize their inventory towards manufacturing. This minimize loses
the companies incur due to loss of inventory and boost their revenue. As far as Call-Us Plumbing
Supply Company Limited is concerned, the company can use inventory management tools to
cater to the increased customer demands and generate higher revenue.
Data analytics:
The second strategy which Call-Us Plumbing Supply Company Limited should use data
analytics to manage inventory and stock management. Tate et al.(2016) mention that using data
analytics would enable more efficient management of inventory by using just in time (JIT). The
marketing department would communicate the probable demand for finished products in the
coming periods, say in the coming year. The inventory management departmental head can
accordingly tally the data with the past records of demands of finished goods received. The
analysis of the past records of orders received would also enable the department to gain
SUPPLY CHAIN MANAGEMENT
materials inventory which the company would require. The suppliers would supply the
appropriate amount of raw materials. Thus, it is clear that use of inventory management tools
would enable the company acquire the raw materials inventory in advance to manufacture the
appropriate number of finished products to meet the demands of the customers (Figure 1). Thus,
it is evident that the strategy of Call-Us Plumbing Supply Company Limited to use inventory
management tools would enable the company estimate future demands of finished goods and
plan the production activities strategically to meet the needs of the customers and generate high
revenue. Pandya and Shah (2016) strengthen the discussion that the inventory management tools
enable firms to adopt lean management as well. This enables the firms to streamline their
manufacturing and inventory holdings with the demands of customers. Nguyen (2015) to points
out that implementation of inventory management tools enables the companies to minimize their
wastage of inventory and mobilize their inventory towards manufacturing. This minimize loses
the companies incur due to loss of inventory and boost their revenue. As far as Call-Us Plumbing
Supply Company Limited is concerned, the company can use inventory management tools to
cater to the increased customer demands and generate higher revenue.
Data analytics:
The second strategy which Call-Us Plumbing Supply Company Limited should use data
analytics to manage inventory and stock management. Tate et al.(2016) mention that using data
analytics would enable more efficient management of inventory by using just in time (JIT). The
marketing department would communicate the probable demand for finished products in the
coming periods, say in the coming year. The inventory management departmental head can
accordingly tally the data with the past records of demands of finished goods received. The
analysis of the past records of orders received would also enable the department to gain
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knowledge about the mechanism which the company had taken in the past periods to manage
situations demanding sudden increase of productivity. Thus, the inventory management would be
able to form more appropriate strategies to manage the challenges posed to the production
capacity of the company due to sudden increase in market demand as shown in the given case
study. Thus, the inventory department would be able to manage the stocks of raw materials
which they have to hold in order to ensure optimum production using data analytics (Nguyen et
al., 2018).
SUPPLY CHAIN MANAGEMENT
knowledge about the mechanism which the company had taken in the past periods to manage
situations demanding sudden increase of productivity. Thus, the inventory management would be
able to form more appropriate strategies to manage the challenges posed to the production
capacity of the company due to sudden increase in market demand as shown in the given case
study. Thus, the inventory department would be able to manage the stocks of raw materials
which they have to hold in order to ensure optimum production using data analytics (Nguyen et
al., 2018).
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Answer 2.2.
SUPPLY CHAIN MANAGEMENT
Answer 2.2.

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SUPPLY CHAIN MANAGEMENT
The tool which Call-Us Plumbing Supply Company Limited would use to manage
inventory would be called customer order management tool. The new inventory management
tool which Call-Us Plumbing Supply Company Limited should use as shown above (figure 2)
would be called Strategic Inventory Acquisition tool or SIA. The tool would be a software based
inventory management tool which would provide the departments concerned namely, the
inventory management department about the actual levels of stocks of raw materials in the
possession of the company. The marketing departmental head would have to upload the future
orders including both confirmed orders and prospective orders on the specific tabs. The
inventory department should be able to obtain the information about the future demands and
check the levels of raw materials in the possession of the company both in the factory store room
and warehouse/on transit. The inventory manager would be able to recognize the difference
between the actual stocks available against the probable stock required to produce finished
products as per orders received. The inventory manager would be able to communicate the
requirement to acquire stocks to the apex management. The apex management would then
approve the acquisition and instruct the accounts department to release cash accordingly. SIA
would stand on FIFO system according to which the stocks acquired first would be channelized
first (Simeon & John, 2018). The software would also enable the inventory department gain real
time data about the amount of raw materials lost to wastage. The inventory department would be
able to retain the data of the raw material wasted and portions of raw materials forming the bye
products of the manufacturing process. The inventory management would be able to channelize
the sludge and bye products again into production process. The departmental heads of different
departments like marketing, inventory and accounts would be able to communicate with each
other by creating chat windows attached to their official email ids (Sedki, Posada & Pruske,
SUPPLY CHAIN MANAGEMENT
The tool which Call-Us Plumbing Supply Company Limited would use to manage
inventory would be called customer order management tool. The new inventory management
tool which Call-Us Plumbing Supply Company Limited should use as shown above (figure 2)
would be called Strategic Inventory Acquisition tool or SIA. The tool would be a software based
inventory management tool which would provide the departments concerned namely, the
inventory management department about the actual levels of stocks of raw materials in the
possession of the company. The marketing departmental head would have to upload the future
orders including both confirmed orders and prospective orders on the specific tabs. The
inventory department should be able to obtain the information about the future demands and
check the levels of raw materials in the possession of the company both in the factory store room
and warehouse/on transit. The inventory manager would be able to recognize the difference
between the actual stocks available against the probable stock required to produce finished
products as per orders received. The inventory manager would be able to communicate the
requirement to acquire stocks to the apex management. The apex management would then
approve the acquisition and instruct the accounts department to release cash accordingly. SIA
would stand on FIFO system according to which the stocks acquired first would be channelized
first (Simeon & John, 2018). The software would also enable the inventory department gain real
time data about the amount of raw materials lost to wastage. The inventory department would be
able to retain the data of the raw material wasted and portions of raw materials forming the bye
products of the manufacturing process. The inventory management would be able to channelize
the sludge and bye products again into production process. The departmental heads of different
departments like marketing, inventory and accounts would be able to communicate with each
other by creating chat windows attached to their official email ids (Sedki, Posada & Pruske,
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