Delta Rice Mill Essay Example

show a noticeable trend. In order to accurately forecast the monthly sales for year-four, Delta rice mill should utilize the average growth rates from these previous three years instead of simply dividing last year's total sales by 12. This approach will enable Delta rice mill to develop more reasonable production schedules and inventory policies, leading to cost reduction and meeting delivery goals on time.

In addition, it is advisable for Delta rice mill to allocate their packing lines according to customer demand for different pouch sizes of rice products. The packing lines have the capability to handle any of the available pouch sizes. Among these pouch sizes, 14 ounces is the most popular followed by 7 ounces and finally 4 ounces. Consequently, utilizing all three packing lines to pack the 14-ounce pouch size would be beneficial for Delta rice mill.

When the 14-ounce pouch size is completed, it can also be applied to the other pouch sizes. Another way to manage inventory is for Delta rice mill to produce instant rice completely in its processing lines and store all the processed rice in large bins. When the mill receives orders from customers and identifies the size requirements, it can then package the rice and utilize the packaging lines to their full capacity. This allows the mill to reduce the amount of inventory it needs to stock, instead of following the corporate inventory policy of stocking inventories for each size.