MRP at Wheeled Coach Case Solution
Accurate Inventory Concern at Wheeled Coach
As the Wheeled Coach has the “ABC implementation model”, which means that “A” represents the high class items, which is about 80% of the total costs. Whereas; “B” represents the medium items, which represents 15% of the value, and lastly, “C” represents the low dollar value items. Because of the implementation of such kind of model; an accurate inventory is the most viable issue for the Wheeled Coach. (Barry, 1999)
Moreover, it shows that the “Accurate inventory” is such a significant issue at Wheeled Coach because of the continuous unique and dynamic changes that occur in ambulances. The inventory that are bought but not used immediately might result in over-stock, which further results in the rejection of the inventory at inconvenient costs. Additionally, “MRP” doesn’t deal without the precise excess. Because of the dependent assembling process; deficiency of a section might shows that the costly emergency ambulance can’t be acquired because of the unit deficiency. The exact cost suggests both for the units wherein the stock is to be introduced. (the emergency vehicle) and as a resource. (Delivers, 2012)
Occurrence of Excess Inventory
The excess of inventory in the Wheeled Coach occurs because of the continuous changes in technologies and advancement in ambulances. The changes may also occur due to the fact that a few inventory in the ambulances have longer lead life than the “17 days” expected for rescue vehicle creation at Wheeled Coach. (Barry, 1999)
Moreover, it also occurs because of the minimum order demand, changes in customer orders and errors in receiving or purchasing dilemma, etc. In order to deal with an excessive inventory;Wheeled Coach needs to first look into the products that have gotten back to the seller for close to full credit, secondly, it needs to focus on the substitutes present on the units and their details, and lastly, to work on some kind of offer or scrap car vendors or drivers who might be in need of such offers.
Moreover, the officer of inventory control at “Wheeled Coach” should focus on ABC investigation and finalize tight actual control of the stock room. He should also carry out a framework that works on counting mechanism, and he should also guarantee that the issues require designing change for those things which are not at first remembered for the bill of material. Stockrooms should be solidified to the possible degree.
It is very difficult for Wheeled Coach to dispose of the inventory excess as it is very hard to substitute the excess items and their materials in the units, because of the units being assembled. It takes headway, concerning the planning shop and stock staff regarding this work and keeping the material bills through planning a change.
There should be continuous training and management of the staff in order to improve the process of finding solutions to the prevailing issue, and the management’s needs to assure and also be aware of the importance of inventory control and budget techniques and he should also have all the basic receipts and information related to the inventory.
In case of those items that are basic and changed; it is right of the executives to initiate an effectivity date. This date would be responsible for the successful implementation of the creation plan based on how the stock would be utilized. Some material can be returned back to their suppliers, but unfortunately few suppliers don’t take old products, which creates troubles for the company.
Nonetheless, the liberation of matters without seeking for anyone’s help has ended up being the final resort for the company. This may be costly strategy but it would help the organization in many cases. It requires classifying, exposure, letter composing, calls and follow up. It is a genuine challenge that would help the Wheeled Coach in providing the deals of excessive inventory on Saturdays, which would be further helpful for the company in getting rid of its excessive or extra stock………………………
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