ACME Widget Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ACME Widget Case Solution

Introduction:

In today's uncertain economy, organizations are looking for different approaches to stay focused in which, Acme Widget Company faced an incapable determining technique that has led to numerous item stock outs. The issue faced by the company was a loss in its sales as well as profits, therefore the company needs to remain aggressive in these types of events. This project shows the procedure of analyzing the organization's present decisive model and prescribing an inventory control model in order to assist them some assistance with solving their current issue.

Accordingly, Economic Order Quantity (EOQ) and Reorder Point (ROP) wereprescribed alongside two anticipating systems to offer them some assistance with reducing their inventory stock outs.

It is highly recommended that the company represents the stock control model, keeping in mind the end goal to lessen stock out and delay purchases. Thus, the company could likewise reduce the aggregate cost connected with their stock. Along with this, if the strategies are utilized viably, the organization could stay competitive among their industry.

Case 1: Modified Blanchard

Basically, the reason for this project is to prescribe approaches to reduce the Company's stock outs by giving a more compelling estimating technique alongside a Monetary Order Quantity and Reorder Point model. Likewise, a cost evaluation could be identified to see the importance of both current model and prescribed model.

The Economic Order Quantity shows the total units required to produce or order while considering the demand of inventory at a certain time period. As in this case, total quantity demanded is 25000 units with given cost of placing one order is $ 2000 per order and estimated the cost per unit is $ 5 that resulted in Economic order quantity of 4,472 units. The average quantity demanded in four weeks is 20,000 units and standard deviation of quantity demanded is 4,000 units.

The managersare also concerned with reorder point along with economic order quantity. ROP shows the safety stocks required for additional units for the placement of an order. It is determined on the basis of use(that shows inventory sold each day), lead time (it refers to the number of days from production to placement of an order) and safety stock (the shows the inventory is kept on hand for unusual delays and usage fluctuation within the lead time.

ROP is calculated as the multiplication of daily usage in lead time. In this case, the company should keep 35,184 units as a safety stock for unusual functions or delay in the order.

Case 2: ACME Widget Company:

The Problem:

The company is expanding its operations from the central plant to diverse geographical regions. The company is facing problems such as:

Customer service because of demotivated employees
Management of warehouse because of increasing inventory
Increase in Transportation Cost and
Decrease in flexibility................... This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.