Parker Earth Moving Company Session 3

Parker Earth Moving Company Session 3

Parker Earth Moving Company
                                                                Team C
Lena F Redondo, Erica Rivera, Gabe Gonzalez, Lisa Zapata, Coby Young, Craig Hudson
ISCOM/305
April 25, 2011
Peter Francis

Parker Earth Moving Company
      Parker Earth Moving Company has progressively been losing business over the past few years. It is time to acquire the assistance of a Consulting Team C to try to reverse the negative effects that have occurred in order to make the company profitable, at the same time protect the company’s reputation, quality service and maintain their customer base.
      Parker Earth Moving Company produces high-quality small earthmoving equipment used in homes and small-businesses internationally. Flawed sales forecasting exceeds production capabilities, inventory, storage, and lacks qualified personnel, therefore Parker must develop a distribution plan for the new Ultra Mover, a navigational device to meet first quarter production and sales requirements of 30,000 units per month. Units exceed production capabilities by 20,000; therefore, the president assigned Team C with providing a written recommendation on how to meet the units’ requirement, while preserving company’s reputation, and minimizing losses. Upon conducting substantive research, Team C identified background information, customer needs, and defined objective, investigated alternatives to minimize costs, and identified the best solution to meet organizational objectives and goals as required. PEMC is required with meeting 30,000 units per month (or 90,000 units for the quarter) as their demand, even though the marketing department may have mistaken the demand target to only be 10,000 units per month (or 30,000 units). The reorder point is when the quantity falls below 667 units. As opposed to: (10,000/300) (10) = 333 units. In order to determine how PEMC can optimize its operation performance, team C has evaluated the inventory reorder per month...