Ib Case Essay

253 Words2 Pages
SCHM 2301 Tasty Treats Executive Brief In the case of Tasty Treats, they are concerned with their inventory levels and performance. They have occasional stockouts and stock surpluses. This has resulted in a lot of capital tied up in carrying the costs of inventory and costumer disappointment form the stockouts. They are also using heuristics to regulate the order quantities. In Tasty Treats, the senior management should consider analyzing their current practices. They should also consider the advantage of purchasing price discounts that they can get from their suppliers if they order 3,000 cases. Tasty Treats also needs to consider the standard deviations of demand and delivery lead times in their process for ordering inventory. Every product will have a different volume of demand and therefore should be based on a sound analysis of market conditions, future forecasts and their historical data not heuristically. Tasty Treats can also increase their service levels if they decide to reduce stockouts by keeping or increasing the required amount of safety stock. Calculating the optimal inventory management practices using the service levels can ensure this and reduce the carrying costs. They can also create a platform for their products to be reviewed; through this they can have a clear idea on how much inventory their products require. This can be done through surveys and polls at the store or online. These recommendations can strengthen their supply chain management because they can now focus on improving the company through the thorough analysis of their past
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