Resource: Operations Management: Processes and Supply Chains, Ch. 9

Read CASE: Parts Emporium at the end of Ch. 9 (pp. 357).
Put yourself in Sue McCaskey’s position and prepare a detailed report to Dan Block and Ed Spriggs on managing the inventory of the EG151 exhaust gasket and the DB032 drive belt.

Write a 1,050- to 1,400-word report.
Discuss Parts Emporium supply chain and possible remedies for its supply chain problems.
Present a proper inventory system and recognize all relevant costs.
Discuss how your recommendations for these two items will reduce the annual cycle inventory, stock-out, and order costs.
Include strategic and tactical changes that might improve the company’s inventory performance, reduce variability, and improve customer service.

PARTS EMPORIUM CASE STUDY 2SummaryEmporium Parts Inc. is a wholesale distributor of automobile parts. The company specializes in distributing two parts; Dan Blocks and Ed Springs. In recent days the company has been experiencing inventory problem; to solve this challenge, the company employed Sue McCaskey. Sue will be responsible for material management for two main parts; EG151 exhaust gasket and DB032 drive belt. As a manager, Sue will be required to offer a solution to the following issues; Sale stagnation, inventory management problem, backorders from the customers, and reduce the lost capacity at the new warehouse. To solve the issues mentioned above, Sue must come up with inventory statistics that will help the company to know the amount of products that will be economical to order. Analysis of the Case Problem As the first manager, Sue will be required to carry out the review for the two products; EG151 Exhaust gasket and DB032 drive. The suitable analysis technique will be use of Economic Order Quantity (EOQ). The result of the analysis will help the manager to come up with effective control methods that will help the company eliminate backorders and reducing the cost of maintaining the inventory.

Format your paper consistent with APA guidelines

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