Jam Electronics 1.How firm cope with huge variability in customer demand? If we desire to have an effective inventory management,we must balance them.At first we should make a forecast demand analysis.It is should be in short period.We could refer to data of the last few months.And make a rough plan according to the demand distribution.Then make a more accurate scheme via to do some market research and survey about the competing products.Then we should take a calculation.At the same time,the company should par attention to the economic.And take measure at the first time. 2.What the relationship is between service and inventory levels? According to the case,we know that if the Jam Company wants to order the goods,it must be transport by the sea.The Jam Company's inventory could not service its customers rapidly.So it must hold a low service level,the unmarketable goods are increasing,so the cost has to increase.It is obviously that the inventory levels influence the service level 3.What is the impact of lead time and lead time variability on inventory level? In the case of Jam Company,the impact of lead time is from two facts.One is spending too much time on sea transportation;the other is that the distribution center takes too much processed time.For the first reason,I think the company should consider change the way of transport.As the manager said the air transportation,the lead time reduce,although the cost add.In fact,the company should take a precise calculate between the sea and air transportation. As to the second fact,I think the company should consider whether the demand in American is huge or not If big,the company should take a long view,and build anew inventory to satisfy the customers'demands directly. 4.What an effective inventory management policy? That is the summary of the above question.For Jam Company,the crucial measure to make an effective inventory management policy is in the following aspects. 1)They should concentration on some important products,not all.And make sure the inventory satisfy the market demands. 2)Reducing te lead time.Take the air transportation and consider build a new factory in American. 3)Make different policy to the different products. 4)Do more research,and calculate the order point,order cycle,demand speed and so on. 5)Improve the service level,and reduce the unmarketable goods. Calculating accurately is the key to balance
Jam Electronics 1.How firm cope with huge variability in customer demand? If we desire to have an effective inventory management,we must balance them.At first we should make a forecast demand analysis.It is should be in short period.We could refer to data of the last few months.And make a rough plan according to the demand distribution.Then make a more accurate scheme via to do some market research and survey about the competing products.Then we should take a calculation.At the same time,the company should par attention to the economic.And take measure at the first time. 2.What the relationship is between service and inventory levels? According to the case,we know that if the Jam Company wants to order the goods,it must be transport by the sea.The Jam Company’s inventory could not service its customers rapidly.So it must hold a low service level,the unmarketable goods are increasing, so the cost has to increase.It is obviously that the inventory levels influence the service level. 3.What is the impact of lead time and lead time variability on inventory level? In the case of Jam Company,the impact of lead time is from two facts.One is spending too much time on sea transportation;the other is that the distribution center takes too much processed time.For the first reason,I think the company should consider change the way of transport.As the manager said the air transportation,the lead time reduce,although the cost add.In fact,the company should take a precise calculate between the sea and air transportation. As to the second fact,I think the company should consider whether the demand in American is huge or not.If big,the company should take a long view,and build anew inventory to satisfy the customers’ demands directly. 4.What an effective inventory management policy? That is the summary of the above question.For Jam Company,the crucial measure to make an effective inventory management policy is in the following aspects. 1)They should concentration on some important products,not all.And make sure the inventory satisfy the market demands. 2)Reducing te lead time.Take the air transportation and consider build a new factory in American. 3)Make different policy to the different products. 4)Do more research,and calculate the order point,order cycle,demand speed and so on. 5)Improve the service level,and reduce the unmarketable goods. Calculating accurately is the key to balance