Anticipated issues: A strong inventory control organisation.
Summary of the sell element:
This is the bread and butter of the company. When the company first started and before it diversifies and grows sell inwardnesss in bulks (in dozens) was its mission. When the company first started it exchange only aggregative perfume products (perfumes that range in price from $1 to $4 per piece). All the perfumes were manufactured in the United Kingdom and trade to Saudi Arabia and then sold through the four sell shops that were in the four main cities in Saudi. Almusbah was the agent for separately of the products that it imported, in fact the products were manufactured especially for the company and it wasn't sold to anyone but Almusbah.
In the late 80's more manufacturers of mass perfume products especially from France were coming to the world. The owner of Almusbah recognized this growth in the industry and it was immediately known that competition would be increment rapidly. The strategy was to try to be the exclusive agent of as many of these manufacturers as possible so not to permit competition i
Another movement why the inventory level is high in the sell division is because of a loose range system. I pull up stakes need to create a reordering system that helps manage inventory levels and place reordering of products at the right time. The system is simply, for every item the manager leave put a level of inventory that if it's reached the computer system will affect a report. This report is discussed in the once a hebdomad meeting with the sales people. Each sales person would guess weather the product was successful or not. If it is successful, then each sales person would have to specify the sum of money he/she think can sell. And continue with the previous attend that I bent for new items.
These two meetings with the general manager of the wholesale division and with the purchasing and sales department would give me the learning needed to identify the cause of the problem that the wholesale division has (high level of inventory).
What quantity do you order when you are reordering a product?
How do you come to the decided quantity?
Diagnosis is a systematic approach to understanding and describing the display state of an organization. With this type of project the type of data that will be collected are qualitative. I will clan a close meeting with the general manager of the wholesale division. I will ask him to detail me the whole process of operations in the division. I will also set a meeting with the purchasing department and the sales military posture of the wholesale division. I will look how strong the coordination amidst the purchasing and the sales department. As it is known week coordination could result too many unwanted results. Such as sales people loosing motivation of selling products that they do not gestate in. I will also look on how the division does its planning in terms of:
What would be the ideal race between the purchasing and sales division?
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