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5 Inventory Management With Respect To Spare Parts Availability Assurance Across 54 Channels and Mother Warehouse A Case Study
5 Inventory Management With Respect To Spare Parts Availability Assurance Across 54 Channels and Mother Warehouse A Case Study
Weight Of Parts 5 7 essential and alternate part can be used, the part
is given ‗D‘ classification. For ‗V‘ parts, a large
Cost Of Spares 3 5
stock of inventory is generally maintained,
High Cost 2 4 while for ‗D‘ parts, minimum stock is enough.
ACT
Auditor and HO to make a list of remedies
(Figure 1: PLAN Activity) which will ensure that the order has been placed
for ‗stock out‘ parts.
Critical and top fast mover parts are in Planning team to update the stock norms based
consideration. Top Movers are further dividied on the requirements and to keep sufficient stock
into 2 segments. Parts under warranty and at warehouse.
After FSN and VED analysis was carried out on HML Analysis Done For the Parts Which
Researchers have suggested following price Researchers created a simple format for
levels for HML categorization: The parts which knowing stock levels and reordering levels at
cost more than Rs. 30000 to be kept in special dealers‘ end based on Excel. The data would
kit. Parts ranging from Rs. 5000 to Rs. 30000 to help them place timely purchase orders. .
be kept as company kit while those costing less
than Rs. 5000 being low valued items to be kept Dealer Code D26
in dealer‘s stock.
Dealer Name ABC
Table 6: HML Analysis for Total 418 Parts
Number of machines 0
HML Price Cut Off(In Total
CCM Name Mr. XYZ
Category Rupees) 418
High Above Rs. 30000 0
Date 5/5/2013
(15% parts from total
list)
Medium Rs. 5000-30000 (50% 51
parts from total list)
Low Less than Rs. 5000 367
(35% parts of total
list)
ACT: Dealer Kit Part Status - Follow Up Taken With Customer Care Manager
Researchers have taken follow up with auditors and dealers to complete the parts ordering. As is
evident the problems were being resolved over time.
(On
Dates)
RESULTS
Abbreviations
Conclusion Bibliography
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research survey done in July 2013 indicates a Supply Networks, 3rd Edition, Norderstedt
significant improvement in customer satisfaction (Books on Demand) 2011
which has increased from 52% to 93%. 3. Chambers Dictionary, 1998, Chambers Harrap,
Edinburgh, p. 845
2) Researchers have controlled fast moving parts
4. Financial Dictionary, formerly
at warehouse end. Inventory department has
at http://www.specialinvestor.com/terms/1072.
enhanced stock levels for these parts at
html, Special Investor
warehouse and have ensure that there are no
5. Johnson and Kaplan, Relevance Lost: The Rise
‗stock out‘ conditions. This has resulted into
and Fall of Management Accounting, Harvard
95% dealer‘s order fulfillment, which earlier was
Business School Press, 1987, p126
74%.
6. R. S. SAXENA (1 December 2009). inventory
3) Due to inventory management and control Management: Controlling in a Fluctuating
activity, company has given action and check Demand Environment. Global India
plans to dealers about spare parts stock at their Publications. pp. 24. Retrieved 7 April 2012.
end, this has in turn improved their business. 7. Armony, M. and Plambeck, E., . "The Impact of
There is definite increase in dealer‘s profit as Duplicate Orders on Demand Estimation and
they are avoiding non availability of spare parts Capacity Investment", Management Science,
at their end. Company has seen drastic Vol.51, Issue 10, October 2005, pp. 1505-
improvement in sales from 73.66 lakh rupees to 1518.
121.51 lakh rupees. 8. Lee, P. Hill D. and Coxhill M. (2012). Retail
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Limitations of the study Zealand, p. 440. .
9. Italian Notebook.com [1]"Who moved my
Although this is a true case study, on account of
parmigiano?" 24 February 2009
reasons of confidentiality, the name of the