Members: Date: September 02, 2022

1. Almira, Kyla
2. Ando, Katsuya
3. Jomocan, Julianne
4. Medina, Baron
5. Obra, Kyla

Situation: Gardenia Bakeries Phil Inc is a company that manufactures one million pieces of
bread in a single day and around 250,000 bread trays are circulating in the trade market. ( In
supermarkets, convenience stores, etc).

1) How can you relate the case of missing Gardenia bread trays in our subject- Inventory
management and Control?

Inventory Management and Control is simply the ordering, storage, and use of a
company's inventory, such as raw materials. The case of the missing Gardenia bread trays is
relevant to our subject Inventory Management and Control because it was an excellent example
of mismanagement and it shows the importance of inventory management and control when it
comes to a company. You will not have accurate information on how much inventory you still
have unless you learn how to manage your company's inventory. Gardenia suffered from
inventory mismanagement, as they lost 250,000 bread trays without tracking them properly. This
may result in additional costs for the company as they must replace the missing trays again.

2) What financial impact/operational impact will it cause the company if they experience
this specific case?

Lost items like the bread trays of Gardenia may result in different impacts on the
company such as the financial or operational impact. The lost or misplaced bread trays may
cause delays in the production and delivery of the bread because this is one of the primarily used
items in the process of delivering it to the consumers. The financial impact the company will
experience is this can reduce assets and equity and lastly this can have a negative impact on
Gardenia’s balance sheet. In the operational aspect, this will force the manager into making an
action plan to check the process of how the trays are managed and adjustments in employees and
production.

3) What solutions can you recommend to address this issue?

In order to prevent this from happening or reoccurring, the company may use software or
the cloud that operates inventory tracking through barcoding in real-time, such as SAP, which
can be used to operate the overall operations of a business. The employees will scan the barcode
every time the bread trays are transferred before releasing them and after collecting them from
the trade markets. Using this software or any other available inventory management cloud
software, the company may track the history or the last location of the trays and collect them
from the said area.