Inventory Management

INSTRUCTIONS

When preparing for your discussion post on this case, it is recommended that you read it several times.

Read it the first time to familiarize yourself with the case.

On the second reading, consider your assigned role in the situation, and let that guide your perspective. Look deeper at the details: facts, problems, organizational goals, objectives, policies, strategies.

Next, consider the concepts, theories, tools, and research you need to use to address the issues presented.

Then, complete any research, analysis, calculations, or graphing to support your decisions and make recommendations.

BACKGROUND INFORMATION

In this module, you covered the principles of inventory management as they relate to an organization's overall day-to-day operations. While each organization must understand their specific business processes and how inventory will affect those processes, you must consider the fundamental principles of inventory management. In our discussion scenario, you have just recently taken over as the Operations Manager at a local organic produce farm, Organically Good. The owner has asked you to send her an email outlining the various benefits and risks associated with expanding the farm's business to several international locations. A non-profit, Growganic, has approached the owner and asked him to establish his farms in 22 small communities in Africa and South America. The main farm will serve as the hub for all seeds and some of the basic equipment (your company has some proprietary tools and machines that are made on the farm). The 22 locations have similar climates and soil make-up (so crops planted should be similar at each location). All of the module's readings and videos should help frame and inform your discussion participation.

This discussion addresses the following Module Outcomes:

Evaluate the effectiveness of the integration of inventory management processes into an organization''s overall operations utilizing various inventory management parameters. (CO4, CO5)

Analyze a variety of inventory management strategies in order to increase profit and reduce costs of mismatches between supply and demand. (CO2, CO4, CO5)

DISCUSSION PROMPT

Imagine you have just recently taken over as the Operations Manager at a local organic produce farm, Organically Good. The owner has asked you to send her an email outlining the various benefits and risks associated with expanding the farm's business to several international locations. A non-profit, Growganic, has approached the owner and asked him to establish his farms in 22 small communities in Africa and South America. The main farm will serve as the hub for all seeds and some of the basic equipment (your company has some proprietary tools and machines that are made on the farm). The 22 locations have similar climates and soil make-up (so crops planted should be similar at each location).

TASKS

1.The owner of Organically Good has asked you to address the following concepts, in an email format:

a.What type of inventory management strategy should Organically Good use? Should it be the same at each location? Why or why not?

b.What risks and benefits can Organically Good expect due to economies of scale? How do the locations of the 22 farms impact economies of scale?

c.What types of data do you expect to collect at each of the farms to help determine optimal inventory levels and expected profits?

2. When responding to at least two classmates, consider their selection of an inventory management strategy. a.What strategy(ies) should Organically Good use? If you choose that same strategy for each location, explain why. If you chose different strategies at different locations, explain why. It should be clear to the reader your reasoning for inventory management strategy(ies).

b. Help your peer identify an additional risk or benefit they may have overlooked in their analysis of economies of scale and explain why you chose this risk/benefit. Your response should be formatted as if responding to them in an email.

Responses should comprise 200-600 words.

Check your work and correct any spelling or grammatical errors. It should be APA style and referenced.