The stock book approach was working for Wilks since it had low production levels and was

able to store
materials and parts in a small warehouse. With the expansion into larger appliances, Wilks no longer has
the warehouse space for the parts and materials needed to produce the large appliances. Wilks could
investigate the costs of expanding its warehouse, but a better option would be to implement a JIT
system. A JIT system would allow Wilks to order materials as they are needed, eliminating the need for a
larger warehouse, and thus saving costs associated with storage.

There are several inventory approaches that the company can consider for their expansion. Here are
some options:

Just-in-time (JIT) inventory approach: With JIT, the company would order parts and materials only as
they are needed for production. This approach can help the company reduce inventory holding costs
and minimize waste from excess inventory. However, it also requires careful planning and coordination
with suppliers to ensure that materials arrive in a timely manner.

Cross-docking inventory approach: Cross-docking involves receiving goods from suppliers and then
immediately transferring them to outbound trucks for delivery to customers. This approach can reduce
inventory holding costs and improve delivery times, but it requires careful coordination with suppliers
and customers to ensure that everything runs smoothly.

Vendor-managed inventory (VMI) approach: With VMI, the supplier is responsible for managing
inventory levels on behalf of the company. The supplier would monitor the company's inventory levels
and automatically replenish stock when necessary. This approach can reduce inventory holding costs
and improve supply chain efficiency, but it requires a high level of trust and collaboration with the
supplier.
ABC inventory management approach: With ABC inventory management, the company would categorize
its inventory based on its value and prioritize stocking of high-value items. This approach can help the
company optimize its use of storage space and ensure that the most important items are always in
stock.

Overall, the best inventory approach for the company will depend on its specific needs and goals. They
should evaluate each option carefully and consider factors such as cost, efficiency, and the level of
coordination required with suppliers and customers