Inventory Management

Read Complete Research Material



Case Analysis

Case Analysis

Q1

There are many problems that are currently being faced by the organization in managing its inventory. The first major problem currently being faced by the company includes the inappropriate timings of providing goods to the customers. The company is also having problem in minimizing its cost relating to inventory. Sometimes there are delays in getting inventory on time. Similarly, sometimes inventory is being placed in the warehouse before required time. The mismanagement of the company to manage its inventory is increasing the cost of inventory to a very large extent. It is also playing significant role in decreasing the satisfaction level of company's customers.

The second major problem currently being faced by the company is the high level of frustration within the customers of the company. The frustration level has gone to high that a customer has also gone physical with the manager of the company. He dragged here near the advertised message of the company and threatens her that company can be sued on the basis of wrong advertisement. The increase in the frustration level of the customers can cause many negative consequences to the organization.

The management of inventory is important for the company as it is directly related with the level of satisfaction of the customers. Customer loyalty is the consideration that the customer gives to the organization for their efforts in the pursuit of satisfaction. Companies must consistently serve their clients. They need to be innovative and react quickly in offering products and services of excellence, all with the lowest possible cost. Quality plays a vital role in achieving this goal. Companies will be successful only if they understand the needs of their customers, and if they are organized properly and take advantage of the skills of all employees to meet these needs.

According to Philip Kotler, customer satisfaction is known as the level of customer's state of the results from comparing the actual product or service performance with the expected performance and is more prone towards finding a better offer to the same product category. Instead, the satisfied customers will be loyal to a brand because they feel emotional affinity towards the organization or the brand. This is the reasons why smart companies look forward to please their customers by promising only what they can deliver, and then deliver more than they promise.

Q3

Customers are the most important people for any organization, and companies focus on their needs and demands while producing and manufacturing goods and services. Satisfying the customers is the primary objective of organizations, as the profits, development and growth of any organization depends on its customer's satisfaction. Satisfying the customers is necessary for organizations, as this helps in building loyal customers and also helps in gaining profits. If customers are satisfied with the products offered by any organization, they will purchase it whenever required and won't switch to other brands offering similar benefits. This also helps in gaining competitive advantage which is necessary for the development and growth of organizations.

One sample of expert ...
Related Ads