1.

The first problem is in relation to the accuracy of the inventory records, both in the

terms of count and the location. In relation to the overflow areas the use of home

based approach is done and the same lends itself to the good discussion regarding the

approaches to location and the types of environments where the employment of same

should be done. The problem with the home based location is that there is assumption

of relatively stable environment of the style changes and of the issues relating to

quantity.

Secondly, there exist the problems in relation to the communication, planning and the

relationships with the suppliers and the retail store. There is pressurising of the

suppliers for the price. People within the warehouse are holding responsibilities which

are defined within isolation.

2. Testimonies through other employees referring to the fact that Hank does not show

any dedication to the job, data regarding unorganised inventory within warehouse.

The following data is required to be gathered by Amy for helping her in building the

case:

a. the supplier by supplier analysis of the history of delivery along with the timing,

count and quality.

b. The number of incidents where problem is caused by packaging within delivering

to store.

c. Data relating to demand through store and the actual shipments within response-

both within timing and the count.

3. Developing the version of ways which were observed the warehouse is having the

paintings within this environment.

Problem analysis:

- Inaccurate information of inventory (accurate till nearly 50%)

 - Replenishing the orders as there is inaccurate stock accuracy

- Lack of conversation among the departments

- No system for managing faddish and the seasonal inventory

- Inaccurate transportation of resources with the aid of the provider (either the same

is far overstock or supplying past due and most of the time exceeded provided the

SKU)

- Poor responses for the order request

- Poor patron offerings

- Decline in profits because of an inaccurate control of inventory

- Technology turned into no longer making usage of property.

- Not collaborating with provider

- Poor consumer support through provider

- Tracking the inventory due to overstocks

- Reduction in income because of the motives mentioned above.

4. The precision and high quality judgements are guaranteed by the comprehensive cost

modelling tool by taking material costs, labour expenses, facility and the maintenance

costs, production costs and the profit margin into account while the product of service

is manufactured. Company is enabled through cost modelling for making the strategic

decisions on the basis of the correct data (Spend Edge , 2017).

CostMart Model

 Improving the accuracy of the inventory records

As mentioned within case, the most crucial reason behind the order replenishment in

erroneous manner is the stock recording error. Inventory oversupply is required for

being controlled for the purpose of bringing improvement within in-stock report
 system. The following areas are required for being considered to bring reduction in

the stock file accuracy:

- Unauthorised withdrawals are required to be prohibited. Overstocking appears

being the reason of such withdrawals.

- There does not exist any suitable location for higher merchandise

- Reducing the obsolescence of stock

- training of warehouse employee (GEP, 2020).

 Department communication appears being necessary

- The departmental communication is vicious. There is unawareness of the

employees of the issues existing within other departments. Integration of all the

processes acts critical in reduction of this problem. Difficulties must be

communicated by the employees and they must strive for forming the team in this

regard.
References

GEP. (2020). COST MODELLING: A KEY ARMAMENT IN YOUR PROCUREMENT

ARSENAL . Retrieved from GEP: https://www.gep.com/blog/strategy/cost-modelling-

a-key-armament-in-your-procurement-arsenal

Spend Edge . (2017). Cost Modeling Enables Strategic Decision Making in the Organization.

Retrieved from Spend Edge : https://www.spendedge.com/blogs/cost-modeling-

enables-strategic-decision-making-organization