Anderson Plastics Inc Essay Example
Anderson Plastics Inc Essay Example

Anderson Plastics Inc Essay Example

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  • Pages: 3 (627 words)
  • Published: December 29, 2016
  • Type: Essay
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This case study examines the purchasing issues and concerns of Roger Gray and Anderson Plastics Inc. The problems discussed are not limited to Roger Gray or the purchasing department. The purpose of this report is to identify these problems and propose solutions to resolve them. One issue faced by the company is a lack of personnel in the purchasing department. Despite increasing their product range from 250 to 550, Roger Gray remains the only purchasing agent.

I think that by giving Roger Gray additional help, he would have more time to focus on monitoring inventories instead of filling out order forms on the computer. If we provide him with support in performing simple tasks within this growing corporation, he can concentrate on more important responsibilities like maintaining customer satisfaction. Furthermore, the transportation method for th

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eir supply is a major concern contributing to stock shortages and operational inefficiencies in this company. The rail system has proven to be unreliable, and I believe it's necessary for this company to reconsider using it as a mode of transportation for their goods.

To guarantee the success of a company, it is crucial to deliver its products and supplies punctually. From my point of view, the company should consider shifting to trucking as its main delivery method in order to enhance efficiency and reduce stock shortages. While there may be higher upfront costs, the long-term benefits of road transportation outweigh the heightened expenses compared to rail. Additionally, making the company accountable for delivering the stock all the way to the manufacturing plant could also aid in addressing delays.

In the event of a stock availabilit

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delay, the company will provide compensation for any resulting losses. To mitigate the risk of stockouts or prolonged stockouts, one option for the company is to source supplies from a nearby supplier. This would result in shorter delivery times and decrease the chances of supply delays by reducing travel distance.

Keeping more stock on hand is an effective way to prevent stock outs. Roger Gray has never faced criticism for having excess inventory. It is unnecessary to hold excessive stock for items with low sales, only the main items should be prioritized. By keeping sufficient inventory of primary resources, the company can continue producing high-revenue items, ensuring customer satisfaction and saving costs by maintaining plant operations.

The materials management systems are in need of updating as they are not consistently up-to-date or show real-time quantities. According to the case, these systems typically lag behind by a day or two, which results in Roger Gray's lack of accurate knowledge about his current stock. To enhance Roger's job performance, providing him with immediate access to inventory information would be beneficial. Upgrading the company's computers, software, and overall hardware would improve efficiency. Furthermore, the company may also need to explore alternative methods for controlling and monitoring stock levels.

To address the issue of materials location, individuals can inform either Roger or one of his colleagues when they are relocating them. Additionally, a lack of communication between departments resulted in an inventory shortage as Roger Gray was unaware of a large order. In centralized purchasing systems, effective communication is crucial to ensure purchasers are informed about sent-out items and pending deliveries.

To resolve the communication

problem in the company, a potential solution is to equip each department manager with a blackberry. This would allow them to promptly communicate with Roger Gray about any additional orders and also hold other parts and individuals within the plant accountable for any problems that may occur. The purchasing department faces several challenges, but fortunately, most of these issues can be easily resolved at a low cost. Addressing these problems could have positive impacts on the company by improving efficiency and ultimately increasing revenue.

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