In this case, We have found Steve’s Tire and Lube’s company to have strong competitive priorities with their friendly environment, honest an reliable work, good reputation in the small town, quality service are worth the price, variety of services and supplies at retail, good employee training at vocation school, and most importantly they have loyal and hard workers， thus store turnover is rare. The order qualifier is service variety, including good services about oil changes, tire rotation and balance, brake pad replacement, and service inspection. In addition, provide retail parts and supplies are also considerable for the customer. Comparison with the same type of store, Steve’s has good order winner than others. It is about offering high …show more content…
For the other part and supplies, the highest safety stock level is 80.85, which is the high performance motor oil. For other products, they are not as high as the motor oil and their safety stock level is fall between 1.82 and 17.99. The arrangement of the stock level is appropriate since the delivery time for the protective covering is one week while the sale and demand for the covers are high. So it is reasonable to have a high stock level. Since the service level is very high (95%), we recommend that the safety level for seat cover can be higher. We can find out that by using the continuous review system the total annual cost of ordering and holding inventory is $6646.57. Also, we find that the holding cost is 30% of the unit cost and the transportation cost for each order is $40. In order to minimize the total inventory cost, Steve’s Tire needs to increase the amount of the high demand products and decrease the low demand safety level. By doing the recommendations above, Steve’s Tire can avoid the extra order cost and the wasted inventory
During 2014 there was an ethical dilemma that occurred at Canadian Tire. There was an employee named Samantha and she held the position of a Supervisor at Canadian Tire. Canadian Tire would give out Canadian Tire money to their clients depending on how much they have spent at the store and this was basically a marketing strategy for Canadian Tire whereby the clients could use the Canadian Tire money to purchase merchandise at the store. Samantha was in charge for restocking the Canadian Tire money at all times. Every time Samantha restocked the Canadian Tire money she would always withdraw few dollars out for herself and make adjustments on the paperwork and she would go to the Canadian Tire Gas station and purchase gas for herself. She went
Canadian Tires Supply Chain & Distribution teams guarantees their promise to their customers, to be their when they need them the most. For Canadian tire that means transporting excellent products from vendor to stores in the most effective and responsible way there is. Canadian Tire is always improving, they always tuning their capacity models, employing technology solutions, and building strong relationships with third party logistics and their product suppliers so they can do an excellent job at managing one of country’s deepest and most extensive supply chain network. They are always sharing long- term agreements with their partners. , They are always sharing forecast information and performing metrics so they can better
Availability of online ordering facility presents the franchise with a competitive edge over its rivals.
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
We will take good care of all our customers and our employees as well as our trucks and equipment.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
Since the customers in this industry are not price sensitive, having a competitive advantage is vital for firms. Hill-Rom considers customer service is its reputation, thus gives significant value to its customer relationships. In addition, its variety of products gives high competitive advantage to the
There is severe competition in today’s tire market between Goodyear, Firestone, and Michelin. They all want their tire to appear on new cars. The tires that come on the car are usually determined by who has the lowest price for the best tires. But companies can bid too low in the heat of a price war. Since the company needs to make a profit on their product, the production cost is lowered, in tern the quality of the product could be lowered.
Meditech is an organization that produces endoscopic surgical instruments. The company manufactures and market low cost endoscopy surgical equipment to hospitals and independent surgeons. New products were critical to Meditech’s strategy of product development, but these product needed to be introduced flawlessly in order to protect Meditech’s reputation and sales of their other products. Three years after Meditech spun off from its parent company, the Largo Healtcare Company. Meditech captured a majority of their market by competing aggressively, developing new, innovative instruments and selling them through a first-class selling force, causing a success in a short period of time. In the past, the organization was experiencing a good customer service, however despite the success, customer dissatisfaction has been growing. Due to the fact that the delivery of surgical equipment on time is very important, this has become a big problem for the organization. Some of Meditech’s customers have been waiting for more than six weeks for products to be delivered, this is not acceptable so Meditech has to come up with a solution.
Signode Industries Inc. - Providing Packaging Solutions Executive Summary SIGNODE INDUSTRY: DILEMMA AT HAND: Mr. Gary Reed, President of Signode Industries packaging division, is in a dilemma as what he should be his course of action to meet the 6.8% increase in price of cold rolled steel- the raw material used in manufacture of Signode’s primary product, steel strapping. There are few options given in the case: Increase Signode’s strapping prices to offset the increased price of cold – rolled steel. Maintain Signode’s current book prices as increasing prices would affect sales force morale. Introduce price-flex model as proposed by Jack Davis i.e. a kind of selective discounting or premium charging for customized services. Recommendations Reason: (All data in accordance to 1983) In accordance to Exhibit 1: Sales of Packaging Division of the company = $285,950 In accordance to Table A: Sales of Apex = 33.3% of $285,950 Sales of BBM = 26.8% of $285,950 Sales of HDM = 33.4% of $285,950 Sales of Customized Products = 6.5% of $285,950 In accordance to Exhibit 4: Similarly, For Apex: As it has a capacity utilization of 71% now, Suppose a sale is $100. Then contribution is $39.15 Therefore variable cost is $60.85. Now if we increase the capacity utilization to 100%, Sales becomes $ 141 since production increases by [(100-71)/71] * 100 = 41% Variable Cost = 141% of 60.85 = $85.8 Fixed Cost = 69.38% * 12.3 = $8.53 Total Cost = 85.8+8.53 = $94.33 EBIT = Sales – Variable cost – Fixed Cost = $46.67 % of EBIT = [(46.67/141) * 100] = 33.09% Suppose the company sales 100x units, the total cost was 69.38. Thus per unit cost was .6938. Now the company sells 141x units, the total cost...
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
However, not everything at wheeled coach was operating so perfectly. As mentioned earlier Wheeled Coach had a major problem in excess inventory. One reason for this was that their bill of materials accuracy was way below standard. When orders were received by Wheeled Coach, the list that tells them the multiple different parts required to make the particular model of ambulance that was ordered, was listing incorrect components. Due to this mistake, a domino effect caused purchase order inaccuracy, as orders are placed according to the bill of materials. Before Wheeled Coach was able to realize that this was an issue they had stock piled copious amounts of excess materials that were not needed in current orders. The final operating failure that Wheeled Coach is experiencing is a different matter entirely. Sales forecasting is not linked to bill of material accuracy or purchase order accuracy, but Wheeled Coach’s inability to estimate their future sales has contributed to the increase ...
Moreover, they need new technology to help to reduce time of delivery, for example the pizza made in the store but can be cook in vehicles while delivery thus the customer will receive fresh pizza from oven as well as reduce delivery time. In addition, this is because the driver then to drive fast and broke the rules lead to accident. Hence, they need to improve on the diver safety and regulation, in order to make sure the company reputation is good so, that law suit case is not charge on them. If this happens it will cause a big loss.
(2)Secondly, the purchase manager selects vendors randomly without analysing the performance of each vendor. However, the manager does not know which vendor offers the cheapest price or which vendor’s goods have the best quality. As result, this problem may lead to the increasing cost of the inventory and also has a negative effect on goods’ quality. The purchase department should do a market survey and then prepare a report about the performance of each vendor. This report should include various aspects of vendors such as the description about each vendor, the vendors’ b...