Scientific glass – Questions

Four questions that need to be addressed are as follows:

1. What were the merits and risks of implementing the proposed policy changes? (Alternative 1)
a. Put greater controls on inventory at warehouses
b. Eliminate trunk stock (emergency stock tied up in each salesperson’s car)
c. Creation of daily/weekly summaries on inventory movements for every warehouse
d. Physical audits and control procedures for all warehouse stocks

2. What were the merits and risks of reverting back to fewer warehouses? (Alternative 2) 1
a. Centralize inventory in one warehouse near Waltham, MA
b. Use SG’s existing delivery service, Winged fleet for all orders

3. What were the merits and risks of centralizing and outsourcing inventory management with
Global Logistics? (Alternative 3)
a. Eliminate all domestic warehouses and outsource order fulfillment, inventory and
inventory management to Global Logistics

4. Were there other creative options the team should consider? (Other alternative)
a. Is 99% customer service level the right solution? Can you reduce it and still provide
adequate service? What is your recommendation regarding CSL?

1 Make sure you use the appropriate inventory model to perform your calculations.

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