Assignment: Case two, Steel Work
Dissecting the truth Study: " Steel Works, Inc. ”
Oklahoma Point out University
IEM 5764. 503 Supply String Strategy
Steel Performs, Inc. like a Company in Crisis
Steel Works, Incorporation. is a company in crisis. Founded in 1980 by a group of material researchers from MIT, the company is continuing to grow to over $400 million in sales in thirteen short years. It now are operating in 5 distinct locations and has more than 2500 workers. The company works two different and impartial divisions. The Custom Products division provides incurred fast growth and accounts for 1 / 3 of the company's sales for $133 , 000, 000. Their industry trades on the ability to offer innovative technical solutions. They tend to develop custom made solutions for individual customers. The Specialty Items division holds two-thirds from the company's revenue at $267 million. They commercialize goods developed by Custom Products and present them to a broader consumer bottom. As a result of having fewer large customers, they will experience a better volatility sought after.
According to the company's Primary Financial Official, Jean Du Blanc, you can actually service level is the worst in the industry. CEO, Kirk Callow, estimates that sales happen to be down about 30% and expenses will be ticking up an additional 25%. Inventory levels are large and are certainly not scientifically methodized to meet the necessity at an satisfactory service level. The company has taken in a specialist to help offer a solution, but the recommendations may necessarily complement the company's organization strategy. With a plethora of complex source chain issues, the company has to have a quick solution to help them start off digging out of the hole they're currently hidden in.
What did the CONSULTANT say?
Before sampling in and creating fresh solutions to the latest crisis, this can be a worthwhile physical exercise to examine the recommendations from the consultant, Fred Chow. His first recommendation was to...
Recommendations: Liu, T. (2014, January). Inventory Supervision PPT. Retrieved February 8, 2014, from https://oc.okstate.edu/d2l/le/content/989236/viewContent/3732087/View
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Building and managing the supply chain: Concepts, strategies, and case research. Boston: McGraw-Hill/Irwin.