Grill Rite Case Study Essay

There be five issues that are relevant.The presidents stance on steady output conflicts with seasonal worker demand. However, it is unlikely that this will change. The main problem is history management. One reward of having a single, centralized store is the lower need for pencil eraser rake due to the canceling effect of random variability in orders from the various regions. Conversely, with calve warehouses, each warehouse needs a relatively larger safety stock to guard against variations in demand. This would en adequate to(p) the centralized warehouse to hear what the regional warehouses are stocking and also review their historical demand patterns and proximo customer forecasts. The fact that the regional warehouses have increased their order coat but customer service has not improved reflects that the wrong stemma items are very likely being ordered. Relevant costs would take transaction costs, transportation costs, versus the potential increase in profit by making up a shortage. Other issues include the following paying back ONE One alternative might be to identify a complementary product that would offset seasonal demand for electric grills. appear TWO What is needed is overall control of the system that would take into bill seasonal variations in demand and achieve a better touch between regional demand and supply. This might involve making or improving regional forecasts. In any case, improved system visibleness is essential direct access to regional warehouse data by the main warehouse is needed in order to be able to coordinate and set priorities on inventory shipments to regional warehouses. retail store triplet It is also necessary to examine the feasibility of shipping from one warehouse to another when a shortage occurs.ISSUE FOUR Develop a policy regarding shipments from the main warehouse (to end user customers versus regional warehouses).ISSUE FIVE Invest in software (distribution resource planning DRP) which would leave des ired visibility and also enable the main warehouse jitney to push inventory where it is needed versus regional warehouse managers pulling inventory where they believe they need inventory, which may not be correct.