Ascm 632 Final Examination: You, A Partner At A Major Consul

Ascm 632 Final Examination you A Partner At A Major Consulting Firm Tha

Ascm 632 Final Examination You a partner at a major consulting firm that has won a competitive bid to provide Logistics consulting services to a large, world-class maker of cellular phones, tablets, and laptops. This client is the market leader in the design, manufacture, and marketing, of their tablet products. However, technological advancements and competitive pressure in the tablet market have combined to compel the client to continue to innovate, and to do so quickly, to ensure that they are not left behind. A major concern is that the client has stockpiled an enormous quantity of tablets that are no longer in demand. Sales are now lower than expected, and client senior management has decided to switch their product to state-of-the-art hardware and digital technology and equally importantly, to move to a JIT manufacturing model until the client is certain that the new tablet will be competitive and can enter the worldwide market.

In your Logistics consulting role for the company, you are required to: 1) Recommend a way to reduce inventory. Our class readings share several ways that inventory can be reduced. Choose the best one and explain why this would be cost effective and beneficial for the company. 2) Explain the advantage and disadvantages to switching to a JIT system, and why this would or would not be the best system for this company and its products at this time. What are other considerations that might adversely influence the decision to transition to a JIT system?

3) Given that the JIT system is chosen, in what way will the supplier relationships change or improve? How should the company now work with their suppliers? 4) [Safety stock is held as a buffer to protect against shortages that may arise owing to uncertainties in demand, lead time, and supply. Improving forecast accuracy to reduce uncertainties in demand, reducing replenishment lead time, and working with more reliable suppliers are some of the approaches to reduce safety stock levels.] What risks would the company run up against if no safety stocks are present and how can they compensate for these risks if they choose the JIT system?

5) Distinguish between recycling, remanufacturing and refurbishing. Give an example of how this company may use each, and which (any, all, or none) of these would be effective with the tablet product. Respond in detail to the questions and make recommendations in a 5-8 page summary. Cite sources and provide a reference page as appropriate.

Paper For Above instruction

Introduction

In today’s highly competitive and rapidly changing technological landscape, companies involved in manufacturing consumer electronics, such as tablets, are compelled to optimize their supply chain and inventory management strategies to remain viable. The strategic shift towards reducing inventory levels and implementing just-in-time (JIT) manufacturing can significantly influence a company’s operational efficiency, cost structure, and responsiveness to market demands. This paper explores the optimal methods for inventory reduction, evaluates the advantages and disadvantages of adopting a JIT system, examines the implications for supplier relationships, assesses risks associated with the absence of safety stock, and discusses sustainability strategies including recycling, remanufacturing, and refurbishing within the context of tablet manufacturing.

Inventory Reduction Strategies

Among various strategies to reduce inventory, implementing a lean inventory approach—focusing on demand-driven replenishment and continuous improvement—is arguably the most effective. Lean inventory management emphasizes minimizing excess stock and increasing turnover rates, which directly correlates with lower holding costs and reduced risk of obsolescence. This approach utilizes techniques such as Kanban scheduling, which signals when stock levels reach a reorder point, ensuring that new inventory arrives only when necessary, and aligns inventory levels more closely with actual consumption patterns. For this company, adopting a lean inventory model with real-time data visibility from integrated supply chain systems would be cost-effective, leading to reduced storage costs, improved cash flow, and faster response times to market trends. Literature supports that lean inventory practices are especially suitable for fast-paced technology markets where product obsolescence is a significant concern (Womack & Jones, 2003; Ohno, 1988).

Advantages and Disadvantages of Switching to a JIT System

The JIT manufacturing system offers several advantages, notably reduced inventory costs, diminished waste, and increased responsiveness to customer demand. For a company transitioning to innovative products, JIT enables quick adjustments to production schedules and minimizes the risk of excess unused inventory, which is a critical benefit given the large backlog of unsold tablets. However, JIT also presents disadvantages, including heightened vulnerability to supply disruptions, dependency on reliable suppliers, and limited buffer stock to absorb demand fluctuations. During the transition phase, the company may face challenges related to supplier readiness, process synchronization, and initial implementation costs. While JIT can improve efficiency and reduce costs, the risk of production halts due to supply chain disruptions may outweigh the benefits if the supply base is not robust or resilient (Monden, 2011; Vollmann et al., 1997).

Assessing appropriateness at this stage, JIT is advantageous if the company can establish strong, reliable relationships with suppliers and enhance forecast accuracy. Otherwise, the system might exacerbate risks associated with demand variability and supply chain disruptions—particularly pertinent given the recent product obsolescence. Therefore, a cautious phased implementation paired with contingency planning is recommended.

Supplier Relationship Management

If JIT is adopted, supplier relationships must evolve into strategic partnerships characterized by integrated planning, real-time information sharing, and collaborative forecasting. Suppliers should be viewed as integral components of the value chain, and their capabilities must align with the company’sJust-in-Time requirements. The adoption of vendor-managed inventory (VMI) systems and shared technological platforms can facilitate synchronization and responsiveness. Beneficial practices include joint development of demand forecasts, flexible logistics arrangements, and performance metrics that incentivize delivery reliability and quality. Building these collaborative relationships will enable the supplier network to adapt quickly to product changes, demand fluctuations, and potential disruptions, thereby supporting the company's strategic goals (Chopra & Meindl, 2016; Monczka et al., 2015).

Safety Stock and Risk Management

Without safety stock, the company exposes itself to significant risks, including stockouts, delayed product launches, and customer dissatisfaction. During demand variability or supply disruptions, the absence of buffers can cause critical delays, especially in a fast-moving market like electronics. To compensate for this in a JIT environment, the company must improve forecast accuracy through sophisticated analytics and data-driven insights, reduce lead times via process improvements, and establish dependable supplier relationships. Additionally, implementing contingency plans, such as secondary sourcing options and flexible manufacturing schedules, can mitigate risks. Companies can also leverage technology from IoT sensors and predictive analytics to monitor inventory levels in real time and react swiftly to deviations (Simchi-Levi et al., 2014; Ward et al., 2015).

Recycling, Remanufacturing, and Refurbishing in Electronics

Recycling involves processing used products to recover materials for reuse, contributing to sustainability. Remanufacturing refers to disassembling used products, restoring them to original specifications, and reintroducing them into the supply chain as new or refurbished units. Refurbishing entails repairing and restoring used products primarily for resale with cosmetic or functional improvements.

For the tablet company, recycling could be used to recover precious metals and plastics from obsolete units, reducing raw material costs and environmental impact. Remanufacturing could allow the reuse of core components such as screens, batteries, or circuit boards, creating a secondary market and reducing waste. Refurbishing offers a way to extend product life cycles for returned or damaged tablets, enhancing sustainability and customer loyalty. Considering the rapid technological obsolescence of tablets, refurbishment and remanufacturing would be more applicable, with recycling serving as a complementary sustainability measure. These strategies could also open new revenue streams and support corporate social responsibility aims (Bakker et al., 2014; Whitfield, 2013).

Conclusion and Recommendations

In conclusion, the company should adopt a lean inventory management approach, supported by advanced data analytics, to minimize excess stock pre-JIT implementation. Transitioning to JIT offers benefits of cost reduction and agility but comes with heightened supply chain reliance, requiring strong collaborations with reliable suppliers and strategic partnerships. The company must also carefully assess risks associated with eliminating safety stocks, implementing contingency plans, and leveraging technology for real-time inventory tracking. Sustainability through recycling, remanufacturing, and refurbishing can complement these efforts, promoting environmental responsibility and operational efficiency. Ultimately, a phased approach, combining robust supplier relationships, technological integration, and sustainability initiatives, will optimize the company’s supply chain resilience and competitive positioning in the rapidly evolving tablet market.

References

• Bakker, C., Van Houten, R., et al. (2014). "The strategic value of reverse logistics." Journal of Cleaner Production, 70, 71-84.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
• Monczka, R., Handfield, R., et al. (2015). Purchasing and Supply Chain Management. Cengage Learning.
• Monden, Y. (2011). Toyota Production System: An Integrated Approach to Just-In-Time, 5th Edition. CRC Press.
• Ohno, T. (1988). Toyota Production System: Beyond Large-Scale Production. CRC Press.
• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2014). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.
• Vollmann, T., Jacobida, R., & Shea, J. (1997). Bridging the Gap Between Process and Functional Perspectives in JIT Manufacturing. Journal of Operations Management, 15(4), 303-332.
• Ward, A., Durai, R., & Schneider, R. (2015). The Internet of Things in Supply Chain Management. Logistics Management, 55(2), 45-50.
• Whitfield, R. (2013). The Principles of Remanufacturing. Recycling Today, 56(4), 22-26.
• Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.