Increase to lack of consensus. Quantitative forecasting method

Increase Efficiency and Decrease Waste. Business
Finance Updated September 09, 2016

Peavler, R. (2016). 
Just-in-Time (JIT) Inventory Management

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References

 

 

 

 

 

 

 

Qualitative
forecasting method

Operation

Strengths
and weaknesses

Executive
opinion

This
is mainly used in the production of products

Forecasting
is done easily and quickly. However, it sets inherent problems to those who
meet as a group.

Delphi
technique

This
deals with the future marketing expectation of the company products

This
method is effective for long range forecasting. However, this method seems to
be highly unreliable due to lack of consensus.

Quantitative
forecasting method

.

 

Life
cycle modeling

This
operating is mainly used in forecasting products produced by the organization

This
method is cost effective since it can easily lead to forecasting of larger
economic activities. This method seems to be poor in complex and small
projects.

 

method. Evaluate the strengths and
weaknesses of each method

create a table in which you identify the characteristics
of the operation that relate to each

Determine a qualitative and quantitative
forecasting method for your operation. Next,

 However, since Just in time only works when
there is trust,  quality assurance, and
cooperation, Home Depot must provide information in a timely and better way to
their suppliers for them to be able to make preparation and allow them adequate
time for delivering of the merchandise and eliminate any activities within the
supply chain and distribution processes that may be added later with the
suppliers, for instance, if any changes should arouse Home Depot most notify
their suppliers as quickly as possible this way the close working relationship
will not be validated on the trust, 
quality assurance and cooperation between Home Depot, their supplier and
during the distribution processes.

It
could come a disadvantage with the use of the Just in time method if Home Depot
don’t inform suppliers and customers about their inventory needs and
requirement due to the lack of timely delivery of merchandise, and for
inventory planning an improved sales forecast. Also, as I stated in my Part One
paper these three means can potentially impact quality assurance: (1) Merchandise limitations. The
organizations are limited to showcasing what will fit inside of the building.
(2) Companies they lose the one on one customer experience and that
relationship clientele that people create when they must come into the store. (3)
Logistics could be an issue if the company was transitioning into a complete
virtual organization because the organization could only ship items to members

Therefore,
Home Depot, in their Brick-and-Mortar stores due to, they serve their customers
within a building or physical location, as well customers come face to face
with them in a specific location to employ Just in time in inventory
reduction.  With that in mind, this
system will help Home Depot goal of inventory of zero with provided goods to
meet their demands.

The
Just-in-Time (JIT) method is a strategy for inventory to be ordered when needed
in the production process. This method eliminates wasted inventory, stock and
time. Equally, with minimal inventory a set of activities is designed to
achieve production at a high volume with the control of the flow of all
inventory.

 

Evaluate 3-5 means in which the philosophy
could potentially impact quality assurance.

Analyze 3 advantages in employing the
just-in-time philosophy in your organization.

executive
due to each employee seeking and executing each task that would make the
company better and not to mention at the store levels, better ways of managing
and handling freight, discouraging freight, improving customer service, rewards
and recognition.

An
integrated effort that is designed to improve the quality performance at every
level of an organization is called a Total Quality Management (TQM).  With this type of tool, Home Depot needs to
engage fully with the whole concept to the Employee
Empowerment because it will develop an environment where all employees are
looking for ways of improving the efficiency within the organization they are
involved and a part of. However, for it to benefit the employees, Home Depot
must create a system that is well integrated for feedback and then once they
leave remarks of certain issues or present ideas that is rewarding to the
company, Home Depot then need to reward those employees. Also, with the use of
Total Quality Management (TQM) tool of Employee Empowerment can be used at all
levels within the organization weather its janitorial or the delivery of the
highest

Develop a total quality
management tool that identifies and analyzes any future issues.

Therefore,
Home Depot has made huge investments, such as Black Locus IBN for-Demand
Forecasting for floor to palletized loads, with these loads it can be weighted
because palletized truck carries on an average less than a floor truck by at
least 30% of merchandise, increase more percentage of damage to the product and
require more man hours to offload, pack and sort out the truck loads. So, to
say that Home Depot emphasis more on one then the other would be an
understatement, I think it is fair to say that this is one company that emphasizes
strongly on all four of these components when it comes to the supply chain.

Collaboration,
Communication, Integration and Demand Management are the four main components
of Supply Chain Management (SCM). With that in mind, Home Depot supports the
efficiencies increase of its imitative supply chain because since 2012 they
have heavily invested in its IT infrastructure and its network of supply
chains. For instance, in 2012, Home Depot acquired Black Locus to help them
make better pricing decision and to analyze their complex merchandise data.
Sun15.

The
management of supply and demand is integrated with the Supply
Chain Management (SCM). Meaning for channel partners such as customers,
distributors, service providers and suppliers the Supply Chain Management (SCM)
covers them with coordination and collaboration.  Based on The Council of Supply Chain
Management Professionals, it encompasses all activities when it involves
management sourcing, procurement, conversion and logistic as well as their
planning. Ian16)

 

and the supply chain of your organization.

determine three (3) major issues that
could affect the structuring, sourcing, purchasing,

Determine the key components of supply
chain management for the company and

Product
Life Cycle (PLC) is known as the stages in its lifetime that a product goes
through, where the demand changes over time. Rei132. With that in mind, The
Home Depot has two generic brand products within the store one is HDX that
could be found in almost every department of the store, this product usually
doesn’t carry a warranty and for the most part it is built for residential use
due to it lower prices and quality point. Whereas, Husky is the other company’s
house brand, in which this product carries a warranty and a bit more expensive
but with great quality. Meaning the stages of products, whether new or old go
through or their growth in the market place that is influenced by Market
Demand. For instance, Managers in Leadership need to know what stage a product
is in due to the benefit of a devise marketing program for product sales due
to, a product goes beyond itself if its presented to the store proper, the way
it is packed and the service as well customer service and warranties that is
offered for the product from within the company. (Ehmke, Fulton, Lusk, 2005).
Consequently, the Home Depot has weaknesses in its Product Life Cycle for their
HDX line of products when it comes to the introduction and growth stages or
otherwise called the early stages. Meaning, the brand HDX line is not close to
maturity and still in the early stage of the Product Life Cycle due to, Home
Depot failure to effectively invest in the marketing, packaging, branding and
creating an imperative of their HDX brands, especially at its early stage of
Product Life Cycle because if any company is to be successful with the sale of
their products they must do a number of things, such as develop an image,
create awareness, public relations, encourage sales and advertise. Mar16.   Equally, in marketing the HDX brand, Home
Depot fail to market it and the packaging of the product/brand which resulted
in a slow uptake. Even so, Home Depot opted to stick with the white packing for
their generic brands which captures the same reaction of cheap and quality as
being low, the same packaging that mostly all retailer uses on the line of
their generic products/brands.  Next,
when it came to Home Depot growth it too showed signs of weakness due to this
area is critical in the Product Cycle Line because it must be ensured by any
company that they react to the market needs to modify the brands that sale
itself, packaging and the direction of marketing so it can grow and generate
revenue or sales for them. Yes, the Home Depot, HDX brand is a success for
them, yet, it will continue to suffer in its growth if customer satisfaction as
well, repeat buying of the product from their customer’s is limited.
Additionally, the failure that Home Depot not devising a strategy for the
changing environment to continue growth for HDX but instead they expanded the
product line more than ever for this generic brand. Therefore, the HDX brands
growth capitalization, Home Depot needs to focus more on their overall
packaging, get away from just the one color and make it much brighter than they
are represented at this point as well there should be improvement and quality
packing and focusing more on their product loyalty to meet their customers
satisfaction.

Evaluate
two to four (2-4) weaknesses that are evident in the selected organization’s
product life cycle. Generate a new product design and product selection, and
then determine three (3) strategies that the organization needs to strengthen
the operation.

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