Scientific Glass Inc Essay

1343 words - 5 pages

IntroductionAt the beginning of the year 2010, Scientific Glass Inc. (SG) was enjoying rapid growth, high customer satisfaction and plans of international expansion. However, problems with its inventory management processes had become apparent and the company's need for a more effective way to manage its inventory was urgent, to say the least. Ava Beane was hired to address this very issue. Beane's goal was to maintain the company's service level or "fill rate" of 99% while decreasing "underage" and "overage" costs. In this case write up, I will analyze Beane's proposal, current alternatives, upper management's decisions as well my own recommendation on this issue. My goal is to come as close to Beane's goal as possible, while giving a realistic, affordable alternative to SG's inventory management's problem.Inventory ChallengesShipping cost and inventory holding costs were steadily rising at SG. Beane discovered that the company incurred costs as high as 10% of the gross margin for products that customer's ordered but were not available in the warehouses. These costs are called "underage" costs and included lost revenue from cancelled orders and backordered administration. The company also had inventory that were in stock at the warehouses but were not sold during the demand period, these are "underage" costs. In order to address some of these issues, SG added regional warehouses, each of which handled approximately 1/8 of SG's total customer orders. This plan attempted to improve customer response times and therefore decrease underage and overage costs because more inventory would be available at the different regions. However, company policies regarding target inventory at the regional warehouses were regularly violated. The company attempted to get a better idea of the inventory balances by taking physical inventory periodically, but without any improvements in the warehouses processes, the problems continued and errors appeared once again in the inventory record.The first possible solution to SG's inventory dilemma could be to decrease the service level from 99% to 95%. The service level is the probability of not stocking out using available inventory. SG's previous service level was 93%. Since the industry's average service level is 92% SG would still be better than the industry average. Although the sales leadership in the company believes it is critical for SG to differentiate itself by having the highest possible service level, it would be more realistic to still place above-average service level but retain the ability to properly keep track of all inventory. Increasing the service level marginally over time, while bettering the inventory management processes, could be a better option. The increase from 93% to 99% may have been too high of an initial jump and developing new inventory processes around this 99% goal could incur further costs or unreliable solutions. A smaller yet ambitious goal, 95%, will still place SG above industry...

Find Another Essay On Scientific Glass Inc

Nestlé and Mars, Inc. Innovate for Shared Value Embedding a Social Mission

2544 words - 11 pages to keep those fundamentals from breaking down or disappearing” (Wetlaufer, 2001). In addition Swedberg (2000), refers to organizations those are with “culture of pride”, in the firm’s achievements and in the achievements and abilities of individuals would find themselves more innovative. Long before Mars, Inc. started its scientific journey in marketing, the company appreciated the value of investing in science and quality data. Furthermore

Bringing Electricity to the Masses Essay

2599 words - 10 pages began to redesign his bulb’s glass to improve the vacuum to excavate the air from the bell of the bulb to help extend the life of his filament. Even with his new improvements he still could not find a material to make a filament that could last long enough to go into production. He decided to try a different approach. He hired a physicist by the name of Francis Upton. “Upton didn’t bring a new bag of scientific tricks. But he brought the scientific

General Electric introduction

764 words - 3 pages innovations helped us see our world differently, from the first fluorescent lamp and "invisible glass" to the first television network, and radar which let us "see" twenty miles away, even at night! More GE firsts in aviation brought us the first U.S. turboprop, autopilot, and the first U.S. jet engine, while Howard Hughes set the record for transcontinental flight with an engine powered by GE.1946-1985. A time of prosperity saw the GE tradition of

GE LLC

764 words - 3 pages innovations helped us see our world differently, from the first fluorescent lamp and "invisible glass" to the first television network, and radar which let us "see" twenty miles away, even at night! More GE firsts in aviation brought us the first U.S. turboprop, autopilot, and the first U.S. jet engine, while Howard Hughes set the record for transcontinental flight with an engine powered by GE.1946-1985. A time of prosperity saw the GE tradition of

Frog Extinctions as Indicators of Environmental Problems

1953 words - 8 pages Tiny or large, smelly or poisonous, there are many kinds of frogs and are excellent indicators of the quality of the overall environment. To this day, scientists continue to find new varieties of frogs never been discovered all over the world. Recently, tiny frogs [its scientific name is Eleutherodactylus Iberia, smaller than a U.S. dime, were discovered under old leaves in Cuba in 1996 (“The World’s Smallest Frog”). See-through glass frogs were

Dmitri Ivanovich Mendeleev

3076 words - 12 pages Timofei the glass blower. "Everything in the world is love," from Maria his mother. (Dictionary of Scientific Biography. p. 291.) As Dmitri grew older, it became apparent to everyone that Dmitri understood complex topics better than others did. When Dmitri turned 14 and entered school in Tobolsk, a second major family tragedy occurred-his mother's glass factory burned down to the ground. The family had no money to rebuild the factory, except for the

Ben Franklin: Early Life

1737 words - 7 pages , philosophy, and science. He repeated experiments of other scientists and added his own ideas that led to inventions of the Franklin stove, bifocal eyeglasses, and a glass harmonica. The phenomenon of electricity interested him deeply, in 1748 he turned his printing business over to his foreman, intending to devote his life to science (#5). Experiments he proposed, showed that lightning was in fact a form of electricity. Later that year his famous

iGeneration: How We Have Evolved from Fire to Smartphones

1593 words - 7 pages alerted her about the meeting that she is going to be almost late for. People are so in touch with their technology that they rely on it, constantly glancing over clear glass that is their touchscreens. This type of devices seems like the future, but the future is quickly approaching. Human beings have been transforming at an alarming rate from the time of the cavemen to the time of the knights and kings and through the beginning of the

Oscar History

3200 words - 13 pages Medal for his pioneering efforts to improve visual effects in the motion picture industry.Since the mid-70's, Feeney has worked to provide leading-edge scientific and engineering solutions to the film industry. The new technologies offered by Feeney and RFX, Inc., the company he founded in 1978, have served as the catalysts to produce ground-breaking visual effects for both feature films and television.In conjunction with leading filmmakers and

The Salem Witch Trials of 1692

1777 words - 7 pages Salem Witch Trials of 1692 Events that began in late 1691 may have been escalated due to religious discord, economic failure or fear of attack by local Indians that allied with French and Canadian communities. Is there a scientific reasoning behind this or was the puritan lifestyle and fear of the French and Indian wars raging less than 70 miles away elevating the communities fear of the devil infiltrating their small community. I will show

What is Worldview?

1049 words - 4 pages interpreting reality, and for making choices” (The Importance of Worldview, 2011, p.11). Hopefully my final destination will be in the “city of gold, as clear as glass” (NLT, Revelation, 21:18).   BIBLICAL/CHRISTIAN WORLDVIEW The Question of Origin As the first book of the Old Testament convey, Genesis, and its Greek meaning “in the beginning,” life originated with God in the Garden of Eden. According to the Scripture, Lord God

Similar Essays

Dispersion Of Different Silane Modified Ti O2 Rutile Nanoparticles In Various Organic Solvents

1214 words - 5 pages . Among the organic solvents dimethylformamide (DMF) and choloroform from Sigma Aldrich, Tetrahydrofuran (THF) and acetonitrile from Alfa Aesar, formic acid, dimethylacetamide (DMAc) and 1,2,4 trichlorobenzene (1,2,4 TCB) from Acros organcs , 2 isopropanol from EMD Chemicals, ethanol from Koptec, toluene from Spectram Inc., dichloromethane (DCM) from Applied Biosystems, acetic acid from Fisher scientific have been purchased. The list of solvents and

Ceramic Glazing Essay

662 words - 3 pages 2 pages on ceramic glazing -GlazesThe knowledge of ways to form glazes on pottery is dated back to at least 5000 B.C. Since glazes were made in many parts of the world long before the beginnings of any scientific knowledge of chemistry, it is clear that the processes involved must have been simple and the raw materials were abundant. The chemical make-up of glazes was not known to the ancient people in glazing their pottery. Their results were

History Of Photography And Its Influences

932 words - 4 pages painters turned photographers, their offerings are still felt today, thus creating a complete medium of art based on a few scientific materials.Work CitedMarien, Mary W. Photography: a Cultural History. 2nd ed. Upper Saddle River,NJ: Pearson Education Inc., 2006.

Nature Of Electrivity And Magnetism Essay

2162 words - 9 pages explanations and conclusions were sought to explain. This led to a various amount of documented scientific arguments and different points of view on topic in the nature of electricity in which will be discussed in this paper. The topic of electricity is extremely large so the topics that will be described in this paper will be split into different sections of each area in electricity. Properties of Charged Objects: The Ancient Greeks were the