Harvey Industries

Harvey Industries is currently facing issues with their current inventory jurisdiction system. The first step in the operation to upgrade the efficiency of the inventory management system is to recognize the weaknesses of the inventory management system and their matching financial impacts. After the areas of anxiety are identified, solutions can then be expanded. The first area of anxiety identified is that there is no one single worker who is responsible for running the inventory levels. Therefore, there is no one who has the responsibility for making sure that inventory prices are minimized. A second area of anxiety is that there is currently no strategy in place which sets the optimal goods levels for each item in inventory. This is a critical issue because out of stock products lower income and leads to discontented consumers. A third area of anxiety is that it seems that just one worker has entrance to inventory and the same worker holds the control of preserving inventory records. This is trouble as it can lead to a conflict of interest and allows for the chance for inventory cheating and misdirection. A fourth area of anxiety is that stock outs are happening in the assembly area as no one is responsible for preserving the inventory kept in this area. When stock outs happen in the assembly area, there is a mislaying of productivity that leads to added prices to the company. The final area of anxiety is that there is no paper trail when it comes to running and observing the inventory levels for the assembly area. Since there is no way to trail the inventory used in the assembly area, there is a possibility for inventory cheating and pilferage. In response to the problems discussed above, some recommendations have been expanded to upgrade the inventory control condition. First, separate departments should be generated for each of the services that Harvey Industries supplies. Furthermore, a specific worker should be appointed for different tasks such as: inventory record preservation, physical inventorying of both the stock room and assembly areas and systematic inventorying of each dispenser to restrict the occurrences of stock outs. By separating the physical inventorying from the record remaining for the inventory, the chance for cheating will be smaller. Second, EOQ, economic order quantity, for independent-demand products should be executed. EOQ is utilized to set up an optimal order amount and will result in lower inventory prices for most products.