Inventory Management

Inventory Management

Student

Professor

Course Title

Date

Inventory Management

            An Inventory is an organized list that contains all the tangible and intangible properties of a company. Materials, work in progress or assets meant to enhance the operations of the firm can make up the inventory. Correct valuation of a company’s assets is very important in making crucial managerial decisions. The paper discusses inventory management based on methods used by Apple and Nordstrom companies.

Types of Inventories and their Characteristics

            Companies can manage four types of inventories. These include Work in Process, Finished goods, Maintenance, Repair and Operating Supplies (MRO) and Raw material inventory (Nemtajela & Mbohwa, 2017). Nordstrom company is distinguished because of the way it handles its finished goods that are ready for the customer. The type of inventory dealing with manufactured goods and services is called the Finished Goods inventory. A characteristic of this is keeping a record of goods that are ready for the consumers. Apple deals mainly with its supply chain inventory. An important feature of this type of inventory is that it is responsible for the supply a company receives as raw materials to the final products ready for consumers.

Goods and Services Design Concept Integration

            The Nordstrom integrates several concepts in the design of its goods and services. The company carries out market research to determine the goods and services needed by customers and the general quantities required. The company thus ensures that enough goods and services are produced without shortage or excessive production, which increases production costs.

            The Apple Company mainly controls its supply chain. The firm reduces the number of suppliers. Only very effective suppliers, both by cost and quality supplies obtain tenders. Quality raw materials are thus supplied at competitive prices. In the end, the company will be able to produce very quality products at fair prices.           

 Role of Inventories in the Companies

             Good inventory management will ensure that a firm has enough stock to cater for the needs of the customers while not producing too much as to increase costs. The inventory may include common databases with suppliers to enable them quickly recognize the organizations' needs and make supplies at the right time. Inventory management incorporates methods that ensure there are very high turnovers. Goods and services in such cases are bought while still at very high market values creating room for new production. Inventories can promote mass productions in an organization. They enable timely orders and sales, therefore, providing capital to carry out mass production. Through the economies of scale, bulk production is cost-effective (Ogbo & Ukpere, 2014).

            Apple, for example, keeps the inventories as low as possible. Lean production reduces the risk of potential losses when competitors develop new products rendering Apple’s products obsolete. Apple also provides transportation services for most of their components in the production process. Thus, they cut on transportation costs and have flexible services tailored according to their needs.

            Nordstrom keeps the customers always updated on the availability of goods and services provided by a company. The company ensures a very high turnover of goods by continuous sales. Nordstrom also provides efficient shipping services to the customers and loyalty gift to retain more customers. High turnover allows the company to develop other new products to attract new markets. Inventories promote efficient production by providing information on the availability of the necessary resources. All the resources necessary for production can then be collected beforehand and prepared. The production process, therefore, occurs smoothly and efficiently (Ogbo & Ukpere, 2014).

Layouts Types

            There are four layout types in business organizations. They entail product, project, process, and cellular layout (Van Dongen, 2016). The first layout is the product layout. The layout is made up of raw materials, which flow in one direction. Value is then added to the raw materials as they move along. In product layout, very skilled workforce and specialized machinery are applied. The structure of the layout, the shape and location are made to enhance the unidirectional flow of material. The product layout is also known as line layout. 

            In cellular layout, a company’s resources are divided into cells. The cells then specialize in handling specific segments of the production. Each individual cell has a similarity to the product layout. Specific cells can also be arranged to produce specific goods. The cellular layout simplifies the process layout.

            The Process Layout groups the units of production according to their functions (Van Dongen, 2016). Production units carrying out similar functions are grouped together. The specialized units can thus be monitored and improved together to make the production process more efficient. The last type of layout is the project layout. Project layout is also called the fixed position layout. All the resources needed for the production of goods are assembled at one specific point. All the production process then takes place at that point. The resources may include raw materials, human resources, machinery and the source of energy.

             It is important for an organization to choose the proper layout. A good layout saves on resources since there will be a reduced amount of waste. Proper layouts also save the time of production and increase efficiency. Well-chosen layouts reduce the operating costs of a business (Zhang, Nishi, Turner, Oga, & Li, 2017).          

The Metrics Used by the Companies

            Common metrics used for supply chain management are the time and quality metrics. The firm should strive to improve the quality of raw materials hence produce quality goods and services. Quality goods and services increase customer satisfaction and thus high customer loyalty to the company’s brand of goods and services. The automation of production reduces the cost of production (Van Dongen, 2016). The extra capital then is invested in increasing the quality of goods and services.

            Another metric is the time. The delivery time should be adjusted to suit customer’s needs. Consumers should be able to access goods and services when and where they need. The customers thus develop trust with the company and prefer their deliveries. One way of ensuring timely deliveries is having a special transportation arrangement.

Ways to Improve Inventory Management

            There are several methods to improve inventory keeping in a company. Inventories should be quickly updated to make sure the staff, suppliers and the customers are privy to any changes as quickly as possible. They will make decisions based on current conditions of the company. Besides, they should monitor all the aspects of the inventory. Monitoring increases the chances of making better improvements to the inventory. Constant monitoring reveals the trends in stock turnover, raw material prices and quality and value change. Companies then use the information to make appropriate changes. Inventory management can be improved by streamlining internal communications to obtain information on changes in supply, production, and sales. The information on the inventory is therefore updated quickly.

            Provide considerations for future changes in the inventory. The inventory should be flexible to adapt to changing supplies, sales, production or growth of the organization. Good inventory management provides room for risks and unforeseen circumstances that would hurt the company. Examples of such changes are a shortage in raw materials and sudden increase in consumer demand.

            There should be an establishment of balances like the order of new supplies or the amount of stock to maintain. Excess stock shows little inventory turnover. Constant levels of supplies should be maintained. Customers should always be able to obtain their ordered quantities of goods or services.

            Dividing the inventory into different parts and managing the parts differently. Division eases the monitoring of the various aspects of the inventory separately. The company then considers various changes basing on the different parts of the inventory.

            Proper inventory management also involves maintaining a good relationship with supplies. Supplies are crucial as they provide raw materials for making products. Good relationship and constant communication with them will enable a company to predict future trends in supplies like possible shortages enabling the firm to take preparatory measures. 

            In conclusion, the importance of inventories cannot be overstated. They inform important managerial decisions in an organization. A company can manage many types of inventories. It is important for a firm to determine the most crucial type of inventory to manage. The type of inventory is normally decided basing on company products, type of consumers and the type of manufacturing processes. Companies should set up measures for the proper managing of inventory to ensure better decision-making and adaptability.

References

Nemtajela, N., & Mbohwa, C. (2017). Relationship between inventory management and uncertain demand for fast moving consumer goods organizations. Procedia Manufacturing, 8, 699-706.

Ogbo, A. I., & Ukpere, W. I. (2014). The impact of effective inventory control management on organizational performance: A study of 7up bottling company Nile mile Enugu, Nigeria. Mediterranean Journal of Social Sciences, 5(10), 109.

Van Dongen, B. W. (2016). A restructuring process: a case study on evaluating layout alternatives for an OEM (Master's thesis, University of Twente).

Zhang, G., Nishi, T., Turner, S. D., Oga, K., & Li, X. (2017). An integrated strategy for a production planning and warehouse layout problem: Modeling and solution approaches. Omega, 68, 85-94.

           

Challenges in the Business Environment

Challenges in the Business Environment

Name

Institutional Affiliation

Challenges in the Business Environment

            Most businesses are conducted within the bounds of law but most important ethical considerations. The sustainability of any business or corporate depends on its approach to ethical issues. Ethical considerations related to the impact of business operations on the environment, society practices, compliance with regulatory agencies, taxation requirements, and employee welfare. However, over the past years, the ethical responsibility has expanded beyond the operations of any corporation to the mandate of its suppliers. Companies have the values and beliefs that they hold dear. These values are the basic frameworks upon which a company’s rules are founded on. Integrity and transparency among others are some of the most important values to any corporate. The supplier code of conduct is a policy document that outlines requirements to be met by all companies wishing to engage in business practices with a particular firm. Companies have incorporated changes into their supplier code of document in a bid to promote the values that are most important to them such as the employee’s welfare. As a company, I believe that one of the key factors to our enlisting in the fortune 500 is our commitment to our supplier code of conduct. Our current supplier code of conduct is the result periodic changes to accommodate emerging issues in business operations. This paper will discuss changes in the Supplier Code of conduct of Apple International Corporation and how it has changed over time drawing appropriate examples.

            The purpose of Apple’s supplier code of conduct is to guide our partners in their activities. As a company, we hold our suppliers and ourselves to the highest standards in regard to human rights, responsible business practices, and the safeguarding of the environment. This means going far beyond the common industry practices all in a bid to improve the lives of our suppliers’ employees. Our supplier code stipulates the protection standards for the employees which are fair working hours, nice living conditions, and safety at the workplace.

Changes in Apple Supplier Code of Conduct

            The supplier code of conduct of Apple has and often undergoes a lot of changes and revision to cater for the most recent emerging issues in business operations. The supplier code has five essential sections which include human rights and labor, employee safety and health, the environment, and ethics (Apple Inc., 2018). The Code of Conduct is taken seriously by the company and has seen a lot of improvements and updates over the past years (Apple Inc., 2018). The 2016 report reveals that a close to 97 percent of the company suppliers had complied with its policy of 60 hours per week in the previous year (Apple Inc., 2018). According to the executive board, it is a huge milestone that had never been experienced by the company before. The company has also placed in position stringent rules in its supplier code that they could risk losing the privilege of production and sales in any non-compliance behavior. Suppliers are required to provide working conditions that are safe, treat the employees with respect and dignity. They are also required to act in an ethical manner. There are requirements for high standards in regard to environmental and social responsibility. This is a big contributor to a reduction in carbon emissions.

            Before striking any deal with a supplier, the company conducts a risk assessment. Scrutiny is done in regard to suppliers not treating their workers in an ethical manner. Auditing takes place to assess such things such as supplier employee qualifications and ethical conduct. In a past unannounced audit with potential requests, Apple canceled most of the requests from the suppliers. It is very unfortunate for willing manufacturers who cannot meet Apple’s pass mark in order to supply the company. The scoring method for the audit is very rigorous and the suppliers will rarely pass the minimum score.

Changes in Labor and Human Rights

            This is an area that has seen improvements over the years especially on the stance of

empowering workers. The company has become aware that in some countries education access is still very difficult. In retaliation, it has introduced the Supplier Employee Education and Development Program (SEED). Under the program, classrooms have been set in supplier facilities with courses such as computer, graphic skills, and Human Resource being offered. Other recent additions to Apple supplier code are in wages and benefits where suppliers are required to a give a minimum wage and other benefits that have accrued. The suppliers are required to communicate the salary structure before employing any worker. Another recent addition to the Supplier Code of Conduct is the grievance system. This is where Apple requires any supplier to give the workers freedom to have a grievance system that will allow communication among them and also the management. With the advent of recruitment agencies as a recent trend in human resource management, Apple requires its suppliers to ensure that any hiring firm that works for them complies with its supplier code of conduct. Students who are allowed to work for the supplier company’s should be properly managed by collaborating with educational partners to provide appropriate support and training.

Changes in Health and Safety

            Among the recent changes in health and safety in Apple’s supplier code of conduct is the addition of health and safety permits for suppliers. These are in regard to the suppliers complying with health regulatory agencies. They should possess the appropriate documentation as evidence that they have been certified to supply goods that are safe and meet the health safety measures. The incident management is a recent development in Apple’s supplier code of conduct. This recent addition requires that supplier firms have a system for employees to report health and safety incidences. The system shall also investigate, track and manage reports that concern health risks. The incidence management system shall also implement actions aimed at mitigating health risks, offer the necessary treatment, and facilitate the return of workers to work.

Changes in Environment Conduct

            Responsibility towards the environment is a highly valued standard by Apple. In this context, various changes and additions have been included in the environment section over the previous years. Apple has a list of products that it requires all its suppliers to regulate their production. These products are those that are meant for other consumers and Apple too. These regulated products are chemical compounds and polymers such as plastics and wire coatings. These compounds have a direct harmful effect on the environment and people. Examples include asbestos, chlorine and its compounds, lead, mercury, perfluorinated compounds, nanomaterials and radioactive substances among others. Suppliers are required by this newly added code to regulate the production of the above-mentioned compounds. Protection of stormwater is a new development. Apple requires suppliers to adopt measures to prevent contamination of stormwater runoff. This means preventing harmful discharges and spills from supplier plants from entering, drains, public water supply and other water bodies. As part of environmental protection measures, Apple has included noise management as part of the codes in its supplier code of practice. The boundary noise management requires suppliers to identify monitor, reduce the amount of noise generated by the facility through a sound design of the facility and the use of appropriate equipment in production.

Changes in Ethics

            Apple has added on to its supplier code of conduct the Customs-Trade Partnership Against Terrorism (C-TAP). Suppliers are required to comply with security standards and procedures stated by the U.S. Customs website. This is an attempt to cooperate in combing terrorism.

            In conclusion, Apple Supplier Code of Conduct is a policy document that outlines the mandate of all suppliers willing to conduct business with Apple. It outlines the responsibility of suppliers to ethical practice, human rights, and health of its employees. Over the recent past, it has undergone changes to cater for arising issues such as the CTAP, Supplier Employee Education and Development Program (SEED), and health and safety permits among others.

           

Reference

Apple Inc., (2018). Apple Supplier Code of Conduct. Retrieved from

            https://www.apple.com/supplier-responsibility/pdf/Apple-Supplier-Code-of-Conduct-     January.pdf

Mr. Fife

Anxiety disorders affect people’s quality of life and the ability to engage in activities of daily living. This paper provides the analysis of the case study of Mr. Fife, who is suffering from a psychological disorder. The paper will focus on diagnosis, identification of symptoms, other possible diagnosis, help, and prognosis.

Diagnosis and Symptoms

From the case study, it is evident that Fife suffered from social anxiety disorder. This diagnosis is based on several symptoms. The first symptom is nervousness, where Fife held that he was going through motions and wanted to lead a normal life. People with social anxiety disorder are nervous and aloof. In addition, Fife had no close friends, which is an indication of the fact that he was detached. People with this kind of disorder often have few friends (Long, 2017). Moreover, Fife was super-conscious, especially when speaking to strangers, which is among the key indicators of the social anxiety disorder.

Additionally, Fife suffered from panic attacks. This kind of attack is triggered by one’s fear of receiving negative evaluation (Long, 2017). This is confirmed by the fact that the attack affected Fife when he was with people. Fife also felt increasingly uncomfortable in the social situations and feared that he would do something stupid. This is a common symptom among the people suffering from this kind of disorder and it occurs in the form of a phobia due to their fear of being humiliated or rejected in the social situations. This phobia makes the affected people avoid social settings. For example, Fife avoided public rooms, group settings, and did not date.

The symptoms seen in Fife relate to the American Psychiatric Association Criteria (APA). People are diagnosed with social anxiety disorder when they meet all the criteria listed by the APA (Long, 2017). Examples of these criteria include the marked fear of at least one social situation, negative evaluation, and anxiety that is provoked by social situations. The fear that these people have regarding the social situation is endured with intense anxiety, while the anxiety is out of proportion compared to the threat that is caused by the social situation. The anxiety or fear must last for over six months (Long, 2017). In the case of Fife, he dropped out of school two years ago, which is more than the required six months. In addition, the fear affects the occupational life of the affected persons, which explains why Fife had to drop out of school. Moreover, the avoidance, fear, and anxiety must not be caused by physiological effects that result from drugs or medication (Long, 2017). There is no evidence to show that Fife abused drugs, which means that the anxiety cannot be attributed to physiological effects. Avoidance, fear, and anxiety should not be attributed to other mental conditions. Therefore, Fife’s condition met all criteria outlined by the APA. 

Two other Possible Diagnoses

The two other possible diagnoses for Fife include the PTSD and OCD. The PTSD was selected because the affected person also suffers from fear, panic, and phobia (Long, 2017). However, these symptoms are associated with disastrous things as opposed to social situations, which mean that the PTSD cannot be selected as one of the conditions affecting Fife. The OCD is considered as a possible diagnosis because it is characterized by intimacy avoidance (Long, 2017). However, it cannot be selected because it is associated with restricted emotional expression, which was not one of the problems affecting Fife.

How to Help Fife

Fife should undergo cognitive behavioral therapy (CBT) sessions. About 14 sessions are recommended for patients with social anxiety disorder (Long, 2017). The CBT is a psychotherapeutic intervention that should be combined with medication in order to enhance the treatment outcomes.

Prognosis

About 30 % of the people suffering from social anxiety disorder recover within one year, while 50 % recover within a few years (Long, 2017). This means that Fife will recover successfully within a few years. This recovery will be enhanced by the aforementioned interventions.

Conclusion

Fife suffered from social anxiety disorder. This is indicated by the fear of social situations. Fife can be assisted through a combination of medication and psychotherapy. 

References

Long, W. (2017). Adjustment disorders. Internet Mental Health. Retrieved from http://www.mentalhealth.com/home/disorders.html